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Portugal Takes a Tough Stance Against Financial Crime
In a bid to curb money laundering and other financial crimes, Portugal has been working tirelessly to strengthen its Anti-Money Laundering (AML) compliance policies. The country’s geographical location makes it vulnerable to financial crimes, but authorities are determined to stay ahead of the game.
A Long History of AML Efforts
Portugal joined the Financial Action Task Force (FATF) in 1991 and has since implemented numerous improvements to its AML regulations. In 2002, the country established the Financial Intelligence Unit (FIU), which operates independently under the Portuguese Judicial Police. The FIU is responsible for investigating money laundering and tax crimes.
Recent Developments
In 2017, Portugal made significant strides in enhancing its AML legislation. The country reduced the allowable limits for cash transactions, established a national record of recipients for financial transactions, and required attorneys to report any suspected instances of money laundering to authorities.
The Role of Banco de Portugal
Banco de Portugal serves as both the central bank and financial regulator of Portugal. It is responsible for implementing AML measures in the country and regulates financial institutions to ensure they comply with FATF and EU regulations.
AML Landscape in Portugal
Portugal’s AML landscape has undergone significant changes in recent years. In 2017, the country introduced laws aimed at reducing cash transactions, establishing a national record of recipients, and obligating attorneys to report suspected money laundering cases.
Classification as a Jurisdiction of Primary Interest
In 2018, Portugal was classified as a Jurisdiction of Primary Interest by the US Department of State’s International Narcotics Control Strategy Report (INCSR). This recognition reflects the country’s efforts to implement AML laws and enforcement mechanisms that meet global standards.
Regulations for Financial Institutions and Non-Financial Businesses
Portugal has put in place regulations for AML that cover a wide range of sectors, including financial institutions and non-financial businesses. Entities are required to:
- Identify clients
- Conduct due diligence
- Report suspicious transactions to the authorities
Consequences of Non-Compliance
In Portugal, imprisonment can be as long as 12 years for those found guilty of financial crimes. For legal entities, the penalty is converted into a fine. The court determines the appropriate penalty based on the financial situation of the convicted entity and its employee-related expenses.
AML Solutions for Financial Institutions in Portugal
To stay ahead of the game, financial institutions in Portugal can leverage Sanction Scanner’s innovative software to develop a solid AML compliance strategy. With real-time screening capabilities, Sanction Scanner helps identify high-risk entities, ensuring a secure environment against threats. Request a demo today to discover the future of AML compliance.
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