Financial Crime World

Portugal’s Financial Regulatory Landscape in 2018: A Review

Portugal, nestled in the southwestern confines of Europe, is undergoing significant changes in its financial regulatory landscape. These transformations, aimed at bolstering investor protection and improving market efficiency, have attracted renewed interest from international investors. In this article, we reflect on some of the most significant developments in Portugal’s financial regulation during the year 2018.

Electronic Market in Portugal

  • The Portuguese Securities Market Commission (CMVM) introduced measures to further strengthen its electronic market.
  • The aim was to attract more trading activity to the electronic platform, reducing reliance on traditional marketplaces.
  • In May 2018, the CMVM introduced new regulations increasing transparency and security in electronic trading.

Banking Sector Reforms

  • The banking sector, a key component of Portugal’s economy, underwent substantial reforms.
  • The Bank of Portugal launched initiatives to strengthen Portugal’s financial institutions and improve investor confidence.
  • Measures included the relaxation of ownership limits for foreign investors, making it easier for them to acquire stakes in Portuguese banks.

Money Laundering Regulations

  • Amid growing concerns about money laundering, Portugal enacted new regulations.
  • The most notable change was the implementation of stricter due diligence requirements for financial institutions.
  • These regulations were designed to minimize risks of money laundering and terrorism financing, in line with international best practices and EU legislation.

Focus on Innovation

  • Portugal’s financial regulatory authorities showed a greater commitment towards fostering innovation in the financial sector.
  • The CMVM launched initiatives to encourage the development and utilization of fintech solutions.
  • These efforts have the potential to position Portugal as a hub for financial innovation in Europe.

As 2018 drew to a close, Portugal’s financial regulatory landscape continued to evolve with a renewed focus on investor protection, market transparency, and promoting a more innovative financial sector. These changes, along with the country’s strategic location and business-friendly environment, are likely to contribute to a robust economic future for the country.