Financial Crime World

Here is the rewritten article in Markdown format:

Financial Crime Prevention Techniques in Portugal: Fighting Money Laundering with Effective AML Compliance Policies

Portugal, a country located in southwestern Europe, has been working tirelessly to prevent money laundering and combat financial crimes. With its geographical location posing some risks, the Portuguese government has taken concrete steps to fight financial crimes effectively by implementing robust Anti-Money Laundering (AML) compliance policies.

The History of AML in Portugal

Portugal joined the Financial Action Task Force (FATF) in 1991 and has since made significant improvements to its AML regulations. The country established the Financial Intelligence Unit (FIU), which operates independently under the Portuguese Judicial Police, in 2002. The FIU is responsible for dealing with executive matters related to money laundering and tax crimes.

In 2004, Portugal enacted Law No. 11/2004, which outlined specific requirements for AML compliance regulations aligned with those of the European Union (EU) and FATF. In 2017, FATF evaluated Portugal’s AML efforts, finding it compliant with 12 and largely compliant with 22 of the 40 FATF Recommendations.

The Financial Regulator in Portugal

Banco de Portugal serves as both the central bank and financial regulator of Portugal. It is responsible for implementing AML/Counter-Terrorism Financing (CTF) measures in the country, regulating and publishing guidelines for financial institutions to follow. These regulations are designed to be compatible with EU laws and FATF recommendations.

Enhancing AML Legislation

In 2017, Portugal took steps to strengthen its AML legislation by:

  • Reducing allowable limits for cash transactions
  • Establishing a national record of recipients for financial transactions
  • Obliging attorneys to report suspected instances of money laundering to authorities
  • Introducing legislative proposals aimed at easing bank confidentiality and granting tax inspectors access to information about bank accounts suspected of involvement in money laundering activities

International Recognition

Portugal was classified as a Jurisdiction of Primary Interest in the 2018 International Narcotics Control Strategy Report (INCSR) by the US Department of State. The report praised Portugal for establishing AML laws and enforcement mechanisms that adhere to global standards.

AML Requirements in Portugal

To combat financial crimes, Portugal has implemented regulations requiring:

  • Financial institutions and non-financial businesses to identify customers
  • Conduct due diligence on business relationships or transactions exceeding specific thresholds
  • Elevated levels of due diligence for high-risk transactions, including those linked to high-risk countries or politically exposed persons

Non-Compliance Penalties in Portugal

In Portugal, non-compliance with AML regulations can result in:

  • Imprisonment for up to 12 years
  • Legal entities may be fined instead, with the court determining the appropriate penalty based on the entity’s financial situation and employee-related expenses

AML Solutions for Portugal

Sanction Scanner offers a comprehensive AML compliance solution that aligns perfectly with Portugal’s regulatory demands. Its innovative software simplifies the compliance journey through real-time screening capabilities, enabling businesses to identify high-risk entities and maintain a secure environment against threats.

Request a demo today to discover the future of AML compliance in Portugal!