The Spanish government is preparing a major shift in how the country regulates large cash movements, both within its borders and across them. Under a draft law targeting money laundering and terrorist financing, with provisions addressing the proliferation of weapons of mass destruction, individuals found with large amounts of undeclared cash would have to prove its legal origin. The proposal would reverse the current system, under which authorities must show that seized money is illicit.
Currently, anyone moving €100,000 or more in cash within Spain, or more than €10,000 into or out of the country, must file a prior declaration. If they fail to do so and authorities intervene, officials temporarily hold the money while investigating its origin. If they find no evidence of illegality, the funds are returned. The proposal would make the absence of proof of legality a serious offence in itself, rather than merely an aggravating factor.
The proposal builds on Spain’s existing anti-money-laundering structure, principally Law 10/2010 on the prevention of money laundering and terrorist financing. Banks and other obliged entities must conduct customer due diligence and monitor transactions against a customer’s known profile, including the origin of funds. Articles 6 and 7(1) provide for ongoing monitoring and a risk-based approach to the documentation institutions may request. As legal analysis by Law2bit puts it, “the law requires [banks] to know the origin of their customers’ funds.” These banking duties are established compliance controls. The draft would extend scrutiny to large holdings and movements of physical cash.
The draft also broadens the definition of “means of payment.” It covers cash in euros or foreign currency, bearer instruments such as cheques and promissory notes, prepaid cards not linked to bank accounts, and high-value commodities such as gold or diamonds. The Ministry of Economy has included these changes to reinforce existing restrictions on cash payments in business transactions.
Business groups have criticized the move, arguing that it presumes undeclared cash is illegal and undermines the presumption of innocence. The association Denaria says the proposal unfairly equates legal tender with fraud and shifts the burden of proof from tax authorities to citizens. It argues that requiring people to prove the lawful origin of funds stigmatizes cash payments, and that the requirement should be removed from the legislation.
Denaria’s objections are part of a broader debate over limits on cash use. Since 2023, residential rent payments have generally had to be made electronically. An exception applies when a party lacks a bank account or access to electronic payment methods and requests cash payment at the rented property. Denaria argues that the information relevant to tax authorities is the existence and amount of the rental contract, not the payment method. The dispute highlights concerns about proportionality and access to payment services, alongside the government’s stated aim of strengthening controls against fraud and money laundering.
The law also says that simply filing a declaration is not enough: if the information is incomplete or inaccurate, the obligation is considered unmet. Discrepancies between declared and actual amounts can still trigger sanctions.
Restrictions on cash payments in commercial transactions remain unchanged. Payments of €1,000 or more between businesses or professionals must be made by bank transfer or card, not in cash. For non-residents without a Spanish tax address, the limit is €10,000. These rules form part of Spain’s ongoing efforts to combat fraud and money laundering, alongside other recent government actions, including the sale of high-value assets by regional authorities.
Other requirements show how proof of origin already works in specific contexts. Spain’s Modelo 720 reporting obligation applies to certain assets and rights held abroad when their relevant value exceeds €50,000. It is separate from the cash-movement thresholds and is not a cash limit. For digital-asset transactions, legal guidance recommends keeping records of initial funding, purchases, transfers between wallets or platforms, sales and tax filings, so the movement of funds can be documented from origin to deposit.
The wider compliance structure is also being strengthened. Royal Decree 813/2026 was approved on 7 October and published in the Official State Gazette on 8 October, with general entry into force scheduled for 28 October. It updates financial-sector rules on customer identification and internal procedures, as well as risk assessment and suspicious-operation indicators. RocaJunyent’s legal analysis says the decree reinforces obligations to prevent money laundering and terrorist financing. The decree concerns institutions’ preventive controls; the proposed cash-origin rule addresses a separate question: how undeclared cash is handled.
Spain’s approach reflects a broader European trend toward closer oversight of cash flows, particularly in cross-border transactions and anti-fraud efforts. A new anti-money-laundering authority, Anifi, is expected to centralize enforcement and improve coordination. The government says these steps are needed to close loopholes exploited for illicit purposes, while critics warn of potential overreach and the risk of penalizing legitimate cash users. As the legislative process continues, debate over privacy and the presumption of innocence will intensify, with the future of cash in Spain also at stake.
