Portugal Steps Up Efforts to Combat Financial Crime with Effective AML Compliance Policies

As one of Europe’s leading nations in the fight against money laundering, Portugal has made significant strides to prevent financial crimes. Despite being situated in a geographically vulnerable location, the Portuguese government remains committed to combating financial crimes and has implemented effective Anti-Money Laundering (AML) compliance policies.

A Long History of AML Compliance

Since joining the Financial Action Task Force (FATF) in 1991, Portugal has consistently improved its AML regulations and legislation over the years. The country’s Financial Intelligence Unit (FIU), established in 2002, operates independently under the Portuguese Judicial Police to tackle money laundering and tax crimes.

Landmark Legislation

A landmark step towards combating financial crime was taken in 2004 with the enactment of Law No. 11/2004, which outlined specific requirements for adhering to FATF’s and European Union’s AML regulations. In a recent evaluation by FATF, Portugal demonstrated compliance with 12 out of 40 FATF Recommendations and largely complied with an additional 22 recommendations.

Regulatory Framework

The Banco de Portugal serves as the central bank and financial regulator in Portugal, responsible for implementing AML/CTF measures across the country. The bank sets regulatory requirements for financial institutions to prevent money laundering and terrorist financing, aligning with both FATF and EU standards.

Recent Legislative Changes

Recent legislative changes in Portugal have further strengthened its AML landscape. In 2017, cash transaction limits were reduced, a national register of financial transactions was established, and attorneys are now obligated to report suspected money laundering activities to authorities.

International Cooperation

Portugal’s classification as a Jurisdiction of Primary Interest by the US Department of State’s International Narcotics Control Strategy Report in 2018 highlights its commitment to adhering to global AML standards. The country has implemented regulations across various sectors, including financial institutions and non-financial businesses, requiring customer identification, due diligence, and reporting of suspicious transactions.

Consequences of Non-Compliance

Non-compliance with AML requirements can result in severe penalties, including imprisonment for up to 12 years or fines for legal entities. Portugal’s regulatory framework ensures that financial institutions prioritize AML compliance and adopt robust risk management strategies to safeguard against financial crimes.

A Reliable AML Solution

For businesses seeking a reliable AML solution, Sanction Scanner offers innovative software tailored to Portugal’s regulatory demands. By leveraging real-time screening capabilities, organizations can identify high-risk entities and create a secure environment protected from threats. Request a demo today to discover the future of AML compliance in Portugal.

Call to Action

Request a demo today to learn more about how Sanction Scanner can help your organization stay compliant with Portugal’s AML regulations.