Canada    FinTech Guide    Chapter 11    Spain


11. Identification
AAA  Spain

Due to the increase in the number of cyberattacks, we expect Spanish companies will take measures to bolster security and combat ID fraud, and there will be an increased need for more technological solutions in the market.



Legal Affairs


In this section we are including all the activities and operations related to the verification of the digital identity of a company or an individual.

The relevant legal texts regarding this matter are: i) Law 10/2010, April 28th, of the prevention of money laundering and terrorist financing, together with the Royal Decree 304/2014, which sets the requirements for the non-face to face businesses; ii) General Data Protection Regulation, which entered into force as Mayo 25th, 2018; and the Law 15/1999, of December 13, on the Protection of Data of a Personal Nature; iii) Regulation 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market.

Particularly, Article 21 of the Royal Decree 304/2014 sets – for the major of the financial activities- that the identification of the clients must be verified through the proceedings permitted by the Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences. Just two mechanisms have been authorised by this entity: i) confirmation of the identity of the account holder among financial entities; and, ii) non-contact confirmation through video-conference.

In addition, the technological supplier must take into account the mentioned Regulation 910/2014, which sets a common standard of reliable identity verification for the secure electronic interaction between individuals, businesses and public authorities. These provisions are more flexible than the requirements set out on the Royal Decree 304/2014; however it sets the obligation for the operator to notify the public authority of their business plan and the intention to operate, in order to be audited and authorised to perform in this market, when applicable.



Economic Conditions


Companies to consider are Nodalblock and Telefónica Digital España. The most important Spanish company in this area is Nodalblock. Some large companies, such as Telefonica, Santander and BBVA, are developing new projects in this area.



Contributing Authors

Ventura Garcés & López-Ibor

Claudi Garcés
Barcelona, Spain


Alfonso López-Ibor
Madrid, Spain

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018