Mohamed Omar Debhi was detained yesterday in the northeastern city of Barcelona "over his alleged links to international terrorism," the ministry said in a statement.
Debhi, 43, a US citizen of Algerian origin who lived in Barcelona, is suspected of "terrorist financing of the Al-Qaeda in the Islamic Magreb" as well as fraud and forgery.
It said he had sent more than USD 80,000 by bank transfer or human couriers to an Algerian citizen in the north African country, Toufik Mizi.
Mizi fled Spain in 2006 after Spanish police dismantled a radical Islamic cell involved in funding AQIM. He is wanted in Spain for terrorist offences.
Debhi and Tizi were involved in laundering the money sent to Algeria through fake companies, the ministry said.
The funds were used to to buy materials for AQIM "terrorist activities."
AQIM carries out attacks and kidnappings in a vast area encompassing parts of Mauritania, Algeria, Mali and Niger.
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