Financial Crime World

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Portugal Battles Financial Crimes: Understanding Types of Financial Crimes in Portugal

As a member of the European Union, Portugal has been actively working to prevent money laundering and combat financial crimes. The country’s geographical location poses risks, but it has taken significant steps to fight these crimes through its Anti-Money Laundering (AML) compliance policies.

A History of AML Compliance

Portugal joined the Financial Action Task Force (FATF) in 1991 and has since made significant improvements to its AML compliance policies and regulations. In 2002, the country established the Financial Intelligence Unit (FIU), which operates independently under the umbrella of the Portuguese Judicial Police.

The First Concrete Step Against Money Laundering

The first concrete step against money laundering was taken in 2004 with the enactment of Law No. 11/2004, outlining specific requirements to comply with FATF and EU AML regulations.

AML Compliance in Portugal

Portugal’s Financial Regulator, Banco de Portugal, is responsible for implementing AML measures. It regulates financial institutions and publishes guidelines on how they should prevent money laundering and terrorist financing.

Recent Enhancements to AML Legislation

The country has taken recent steps to enhance its AML legislation, including:

  • Reducing cash transaction limits
  • Establishing a national record of recipients
  • Obligating attorneys to report suspected instances of money laundering

AML Landscape in Portugal

Portugal’s AML landscape is designed to reduce the risks associated with financial crimes. The country has implemented measures such as:

  • Enhanced customer due diligence for high-risk clients
  • Reporting of suspicious transactions
  • Prohibitions on maintaining relationships with shell banks

Non-Compliance Penalties

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

  • Imprisonment up to 12 years
  • Fines instead of imprisonment for legal entities
  • The court determines an appropriate penalty based on the entity’s financial situation and employee-related expenses

AML Solutions for Portugal

To navigate the complexities of AML compliance, companies operating in Portugal can leverage innovative software solutions like Sanction Scanner. This cutting-edge technology aligns perfectly with Portugal’s regulatory demands, providing real-time screening capabilities to identify high-risk entities and protect against threats.

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