In a move to strengthen its campaign against tax fraud, money laundering and the financing of terrorism, Spain has introduced new measures requiring individuals to notify the national tax authority before making large cash withdrawals from banks.

According to EuroWeekly, any person intending to withdraw €3,000 or more from a Spanish bank must now file a prior notification with the Agencia Tributaria, Spain’s tax agency.

For withdrawals of €100,000 or more, a minimum of 72 hours’ advance notice is required, while amounts exceeding €3,000 but below €100,000 must be declared at least 24 hours before the transaction.

The notification must be submitted through the official website of the tax agency using a recognised digital identification method, such as a digital certificate, Cl@ve PIN or electronic ID card.

Once the notification is submitted, individuals will receive a receipt, which must be presented at the bank when withdrawing the funds.

Failure to comply with this regulation may result in penalties ranging from one percent to ten percent of the withdrawn amount.

Fines begin at €600 and can escalate up to €150,000, depending on the nature and severity of the violation.

Banks across Spain have been instructed to deny cash withdrawals if the required documentation is not provided.

Additionally, financial institutions are now obligated to report any suspicious activity to the authorities, including frequent smaller withdrawals that fall just under the threshold, particularly when there is no clear justification for such patterns.

The Spanish government emphasises that these measures are part of a broader effort to ensure the traceability of significant cash movements and to clamp down on the illicit use of physical money.

Authorities highlight that even withdrawals of €800 or €900, if repeated and unexplained, may attract scrutiny.

To remain compliant, individuals must provide the amount to be withdrawn, the reason for the withdrawal, and their identity, along with the identity of the final recipient if different.

This information must be included in the online notification to the Agencia Tributaria.

The government’s message is unequivocal: large cash transactions will be closely monitored, and those who do not follow the rules may face serious financial consequences.

Citizens are urged to plan ahead and submit the necessary notices before approaching their banks for large cash withdrawals.

 

Featured image credit: edited from freepik