Financial Crime World

Portugal’s Anti-Money Laundering Laws and Regulations: A Comprehensive Overview

Portugal, as a member of the European Union (EU), has implemented robust anti-money laundering (AML) laws and regulations to prevent and combat money laundering and terrorist financing activities. This article provides an in-depth look at the key statutes, authorities, and enforcement mechanisms in Portugal that tackle AML crimes.

Portuguese Laws Against Money Laundering

Portuguese laws addressing money laundering are primarily based on two legislations:

  1. Prevention of Money Laundering and Terrorist Financing Act 60/2006 (Lei 60/2006): This law sets out the framework for the prevention and detection of money laundering and terrorist financing acts.
  2. Code of Criminal Procedure (Código de Processos Penais): This code governs the criminal investigation procedures in Portugal.

The Anti-Money Laundering Authority (APAS)

The Anti-Money Laundering Authority (Autoridade para Prevenção de Lavagem de Activos Sanguentos or APAS) is the primary body responsible for combating money laundering and terrorist financing in Portugal. APAS:

  • Supervises financial institutions.
  • Monitors transactions.
  • Cooperates with international agencies.
  • Issues warnings, fines, and revocations as necessary.

Customer Due Diligence Procedures

Portugal maintains AML vigilance by enforcing customer due diligence procedures, as required by the EU’s Fifth Anti-Money Laundering Directive (5AMLD). Financial institutions are required to:

  • Identify their clients.
  • Assess the risks associated with their business relations.
  • Monitor transactions for any suspicious activities.

Suspicious Transaction Reports (STRs)

Portuguese law mandates the filing of Suspicious Transaction Reports (STRs) to APAS. Institutional creditors, credit intermediaries, financial institutions, and casinos must report any transaction that they deem, based on their customer due diligence, to have a high risk of being related to money laundering or terrorist financing. Failure to report can lead to hefty fines and criminal charges.

Portugal maintains a mutual legal assistance framework to share information and cooperate with other countries in investigating and prosecuting AML and terrorist financing crimes.

Conclusion

Portugal’s anti-money laundering laws and regulations provide a strong foundation for the prevention, detection, and prosecution of money laundering and terrorist financing activities. APAS, guided by the 60/2006 Act and the Code of Criminal Procedure, plays a crucial role in maintaining Portugal’s AML framework and ensuring its continued effectiveness in the global fight against financial crimes.

  • Prevention of Money Laundering and Terrorist Financing Act 60/2006
  • Customer due diligence procedures
  • Suspicious Transaction Reports (STRs)
  • Anti-Money Laundering Authority (APAS)
  • Mutual legal assistance framework