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Money Laundering and Terrorist Financing Prevention: A Growing Concern
Lisbon, Portugal - To strengthen efforts against money laundering (ML) and terrorist financing (TF), Portugal has established a framework for information sharing between its Financial Intelligence Unit (FIU) and the Tax and Customs Authority.
The Role of the FIU
The FIU, set up in 2003, is responsible for collecting and analyzing financial data to prevent ML and TF. The unit works closely with other entities, including the Permanent Liaison Group, which comprises representatives from the PJ and AT.
Rise in Suspicious Transaction Reports
According to a recent report, the number of Suspicious Transaction Reports (STRs) received by the FIU has been on the rise in both the financial and non-financial sectors. In 2012 and 2013, the numbers were 2020 and 2400 respectively.
Public Prosecution Service’s Role
The Public Prosecution Service plays a crucial role in ML prevention, with its Central Department for Criminal Investigation and Prosecution (DCIAP) responsible for analyzing STRs and registering them as prevention procedures. These procedures can lead to inquiries, even in the absence of a transaction suspension, or the addition of documents obtained during an investigation to existing cases.
Supervisory Authorities’ Role
Supervisory authorities are also critical in preventing ML and TF. The FIU works closely with these authorities to identify and disrupt illegal activities. In 2018, Portugal’s Supreme Court ruled that banks must report suspicious transactions to the FIU, further strengthening efforts against ML.
The Evolving Landscape of Money Laundering
Transnational criminal organizations have evolved over the years, adapting to new technologies and exploiting vulnerabilities in financial systems. These groups are increasingly using digital currencies and alternative payment methods to launder money.
- The “deep web” is a growing space for buying and selling illicit goods, and organized cybercrime is becoming a major concern.
- These criminals are highly adaptable and will stop at nothing to maximize their profits.
Incorporating Progress in Technology
Incorporating progress in technology has allowed these organizations to create new mechanisms for laundering funds, making it increasingly difficult for authorities to track down illegal activity.
The Challenge Ahead
Portugal faces significant challenges in preventing ML and TF. The country’s geographic location makes it a hub for international trade and finance, increasing the risk of money laundering and terrorist financing.
Combating the Threat
To combat this threat, Portugal must:
- Continue to strengthen its regulatory framework
- Improve cooperation between authorities
- Enhance public awareness of the risks associated with ML and TF
Conclusion
As the global landscape continues to evolve, it is crucial that Portugal remains vigilant in its efforts to prevent ML and TF. The country’s commitment to combating these threats will play a critical role in maintaining stability and security for its citizens and businesses.