Here is the rewritten article in Markdown format:

PORTUGAL TIGHTENS ITS GRIP ON MONEY LAUNDERING AS IT FACES EUROPEAN RISKS

=============================================

Portugal has been working tirelessly to prevent money laundering, taking into account its strategic location in Europe that makes it vulnerable to financial crimes. The country’s government is aware of the risks posed by money laundering and continues to take precautions to fight financial crimes effectively.

A Major Milestone in Portugal’s AML Journey

Since joining the Financial Action Task Force (FATF) in 1991, Portugal has made significant improvements to its Anti-Money Laundering (AML) compliance policies. In 2002, the country established the Financial Intelligence Unit (FIU), which operates independently under the umbrella of the Portuguese Judicial Police.

The FIU deals with executive matters and does not regulate financial affairs. The first concrete step against money laundering in Portugal was taken in 2004 with the enactment of Law No. 11/2004, which outlined specific requirements to follow up with FATF’s and the European Union’s (EU) AML compliance regulations.

In Compliance with EU Regulations

In 2017, Portugal was cited as compliant with 12 and largely compliant with 22 of the 40 FATF Recommendations. This achievement removed Portugal from FATF’s list of AML-deficient countries. The country’s progress has been recognized by the international community, with Portugal being classified as a Jurisdiction of Primary Interest in the 2018 International Narcotics Control Strategy Report (INCSR) by the US Department of State.

Banco de Portugal Takes the Lead in AML Regulation

As the central bank and financial regulator of Portugal, Banco de Portugal is responsible for taking AML/CTF measures in the country. The bank regulates and publishes measures to be taken by financial institutions, which include regulations to prevent money laundering and the financing of terrorism.

Enhanced AML Legislation in 2017

In 2017, Portugal took further measures to enhance its AML legislation, reducing allowable limits for cash transactions, establishing a national record of recipients for financial transactions, and obligating attorneys to report any suspected instances of money laundering to the authorities.

Strengthening Bank Confidentiality and Tax Investigations

Toward the end of 2017, Portugal introduced legislative proposals aimed at easing bank confidentiality and granting tax inspectors access to information about bank accounts suspected of involvement in money laundering activities.

The Effects of Organized Crime on AML Requirements

Portugal has put in place regulations for AML that encompass a wide range of sectors, including both financial institutions and non-financial businesses. Entities are mandated to identify clients and conduct due diligence for business relationships or transactions exceeding specific thresholds.

Non-Compliance Penalties in Portugal

In Portugal, imprisonment can be as long as 12 years for severe AML offenses. If the perpetrator commits the crime on a regular basis, the penalty can be increased by a third. For legal entities, the prison sentence is converted into a fine.

AML Solutions for Portugal

Forge a solid AML compliance strategy in Portugal via Sanction Scanner’s prowess. Its innovative software aligns perfectly with Portugal’s regulatory demands, simplifying the compliance journey through real-time screening capabilities and spotting high-risk entities to ensure an environment protected against threats. Request a demo to discover the future of AML compliance today!