Financial Crime World

Portugal Cracks Down on Financial Crimes: An In-depth Look at Portugal’s Anti-Money Laundering Regulations (AML/CTF)

Stay Compliant with Portugal’s AML Laws and Regulations in 2023-2024

Portugal, a member of the European Union (EU), has been implementing robust regulatory measures to tackle financial crimes, particularly Money Laundering (AML) and Terrorist Financing (CTF). This in-depth article explores the Portuguese legislative framework, recent updates, and upcoming changes to its Anti-Money Laundering and Criminal Enforcement regulations.

Portuguese Regulatory Landscape

The primary legislation governing AML and CTF in Portugal is Law No. 37/2004, of 28 August, which transposed the EU’s Third Anti-Money Laundering Directive (3AMLD) into Portuguese law. This legislation is regularly updated to reflect the changing landscape of financial crimes and international regulations.

Key Provisions of Portugal’s AML Framework

  • Financial institutions are obligated to identify and report suspicious transactions.
  • Customer due diligence measures to prevent money laundering and terrorist financing, such as Know Your Customer (KYC) checks.
  • Establishment of the Financial Analysis Unit (CNC) to receive and analyze suspicious transactions reports.
  • Penalties for non-compliance, ranging from fines to criminal penalties.

Recent Updates to Portugal’s AML/CTF Regulations

In February 2023, Portugal introduced new regulations in accordance with the EU’s Fifth Anti-Money Laundering Directive (5AMLD):

  • Expanded the definition of ‘financial institution’ to include real estate agents and casinos.
  • Mandated reporting entities to conduct risk assessments and implement appropriate measures based on the identified risks.
  • Required financial institutions to implement measures to prevent tax fraud.

Upcoming Changes to Portugal’s AML/CTF Regulations

Portuguese regulators have announced plans to introduce further changes to the AML/CTF regulatory landscape, effective in 2024:

  • Amendments to customer due diligence measures for high-risk customers.
  • New reporting and record-keeping obligations for virtual asset service providers (VASPs).
  • Updated guidelines on beneficial ownership information and customer identification.

Conclusion

Portugal’s comprehensive regulatory framework to tackle Money Laundering and Terrorist Financing is constantly evolving. Financial institutions operating in Portugal must stay informed and adhere to the latest regulatory updates to maintain compliance.

Download our in-depth report for a more detailed understanding of Portugal’s Anti-Money Laundering and Criminal Enforcement regulations, including information on money laundering, criminal enforcement, and more.