Financial Crime World

Portugal Cracks Down on Financial Crime: A Look into the Country’s Anti-Money Laundering Measures

Portugal, a member of the European Union, has taken significant strides in the past few years to strengthen its anti-money laundering (AML) and counter-terrorist financing (CTF) framework. The country’s commitment to financial crime prevention is evident in its consistent efforts to adapt to international regulations and comply with the requirements set by the Financial Action Task Force (FATF).

One of Portugal’s notable changes was the enactment of Law No. 36/2017, which was aimed at improving the legal framework to prevent and combat money laundering and terrorist financing in the country. Some of the enhancements introduced under this law include:

  • Establishment of a National Register of Beneficial Owners
  • Transparency of financial transactions
  • Mitigation of risks associated with money laundering and terrorist financing

National Register of Beneficial Owners

Under the new law, Portugal required companies and legal entities to register and publicly disclose their beneficial owners. This registry not only helps in enhancing transparency but also makes it easier for law enforcement agencies to track the ownership structures of various entities.

International Cooperation

Portugal has ratified several international treaties and conventions aimed at fighting financial crime. By being a signatory to the following agreements, Portugal has demonstrated its commitment to international efforts to combat money laundering and terrorist financing:

  • United Nations Convention Against Transnational Organized Crime (UNTOC)
  • European Union’s Fourth Anti-Money Laundering Directive (4AMLD)

Regulatory Bodies

To ensure effective implementation of the AML and CTF laws and regulations, the Portuguese government has established several regulatory bodies responsible for enforcing these measures:

Comissão de Supervisione de Jogos (CSJ)

The CSJ is charged with overseeing the compliance of financial institutions with the AML and CTF regulations. This organization is responsible for the supervision and monitoring of financial transactions, as well as the investigation of potential breaches of the legislation.

Autoridade Tributária Independente (ATI)

The ATI is the primary body responsible for enforcing the AML and CTF regulations in relation to gaming establishments. This organization works closely with other regulatory bodies to ensure that all gaming establishments in Portugal comply with the applicable legislation.

International Cooperation and Joint Operations

Portugal has also stepped up its international cooperation to tackle financial crime. Being a member of various international organizations, such as the European Union and the Council of Europe, provides a platform for sharing information and coordinating efforts to prevent money laundering and terrorist financing. Regular engagement in joint operations with international partners helps disrupt criminal networks and bring perpetrators to justice.

Challenges and Initiatives

Despite Portugal’s efforts to combat financial crime, challenges remain. Criticism from the European Commission and the FATF regarding the effective implementation of certain AML/CTF measures necessitated remedial actions. Some of the measures Portugal has initiated to improve its AML/CTF regime include:

  • Increasing resources allocated to financial intelligence units (FIUs)
  • Enhancing the powers of competent authorities
  • Investing in technology to improve the monitoring of financial transactions

Conclusion

Portugal’s determination to combat financial crime is evident from its consistent efforts to enhance its legislation and implement effective enforcement mechanisms. Despite the challenges, Portugal’s commitment to maintaining a robust financial system and upholding international regulatory standards remains unyielding.