Financial Crime World

Title: Portugal Cracks Down on Money Laundering: An Overview of AML Enforcement in Portugal

Portuguese flag with AML Enforcement inscription

Portugal, known for its historic beauty and vibrant culture as a European Union (EU) member country, has experienced increased scrutiny in the arena of Anti-Money Laundering (AML) enforcement. This heightened attention stems from the Portuguese government’s determination to strengthen its regulatory framework and combat financial crimes.

Portugal’s AML framework is governed by Law No. 37/2006 of August 25, which implements the EU’s Third Money Laundering Directive. The law covers the following AML-related issues:

  • Customer due diligence
  • Record-keeping
  • Reporting obligations for designated professional sectors

Recent Enforcement Actions: Portland’s Crackdown on Financial Crimes

In a joint effort to combat money laundering and terrorism financing, the Portuguese Securities Market Commission (CMVM) - Portugal’s primary securities regulator - and the Financial Intelligence Unit (SIF) have increased their enforcement efforts. These actions have culminated in several high-profile investigations and sanctions against individuals and entities suspected of engaging in money laundering activities.

Case in Point: Notable Enforcement Cases

Two noteworthy examples of Portugal’s increased AML enforcement include:

  1. Investigation into a Portuguese commercial bank: The SIF reportedly ordered a Portuguese commercial bank to terminate its correspondent relationship with a Latvian bank, suspecting the bank of facilitating money laundering. The bank was also fined €30,000.
  2. Charges against a Portuguese businessman: A Portuguese businessman was charged with fraud and money laundering, resulting in a freeze on his assets valued at around €50 million. The funds, which were believed to be derived from criminal activities, were subsequently confiscated.

With continued implementation of EU regulations and a commitment to AML enforcement, Portugal is poised to remain at the forefront of efforts to combat financial crimes. Key steps in this process include:

  • Ongoing training and resource allocation for enforcement agencies
  • Implementing effective, risk-based supervision in designated professional sectors

Stakeholders, including financial institutions, law firms, and other designated professionals, must stay updated on the latest AML requirements to ensure compliance. It is anticipated that the Portuguese government will continue to prioritize AML enforcement in order to maintain the stability and integrity of the country’s financial system.

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