Financial Crime World

Portugal Cracks Down on Financial Crime: A Look at Portugal’s Anti-Money Laundering and Terrorism Financing Laws

Portugal, a member of the Financial Action Task Force (FATF) since 1991, has taken decisive steps in the fight against money laundering, terrorism financing, and the financing of the proliferation of weapons of mass destruction. The country’s commitment to countering these illicit activities is apparent with recent reports and the active involvement of various Ministries and national authorities in FATF work.

  • Adoption of EU Directives: Portugal adopted the European Union’s (EU) Fourth Anti-Money Laundering Directive (4AMLD) and made it law with Decree-Law 342/2017. The 4AMLD enhances customer due diligence measures, increases transparency, and broadens the definition of politically exposed persons (PEPs). Portugal also embraced beneficial ownership transparency, implementing the fifth EU Anti-Money Laundering Directive (5AMLD).

Key Players in Portugal’s Anti-Financial Crime Efforts

Ministry of Finance

  • ** Role:** The Ministry of Finance plays a pivotal role in Portugal’s anti-money laundering and counter-terrorism financing efforts.
  • Responsibilities: The directorate-general for tax and customs administration (DGTC), under the Ministry of Finance, supervises financial institutions and collects and analyzes information related to potential money laundering and terrorist financing cases.

Securities Market Commission (CMVM)

  • ** Role:** The Securities Market Commission (CMVM) enforces financial regulations, supervises financial intermediaries, and maintains investor protection.
  • Collaborations: The CMVM works closely with the European Securities and Markets Authority (ESMA) and other international organizations to combat illegal activities.

Public Prosecution Service

  • Role: The Public Prosecation Service is crucial in investigating money laundering and terrorism financing cases.
  • Efforts: In 2017, the service opened 1,332 money laundering investigations, resulting in substantial asset seizures, over €22million in cash alone.

Ongoing Commitment to Addressing Financial Crimes

Portugal’s dedication to making its financial sector less attractive to illicit activities continues to be strengthened through ongoing FATF evaluations and collaborations with international partners. This unwavering commitment ensures a safer and more transparent future for Portugal and the global financial system as a whole.