Financial Crime World

Portugal’s Financial Crime Definitions: An In-depth Look

Portugal, as a member of the European Union, has implemented stringent legal regulations to counter financial crimes, particularly money laundering and terrorism financing. This article delves into the essential financial crime definitions and regulatory frameworks in Portugal.

Money Laundering Definition and Prohibition

According to Portuguese law, money laundering is defined as:

  1. The conversion or transfer of property, directly or indirectly,
  2. Derived from criminal activities,
  3. Into apparently legitimate assets or proceeds.

Money laundering is a punishable offense under Portuguese law, with penalties including imprisonment and fines.

Terrorist Financing Definition and Prohibition

Terrorist financing refers to the provision or collection of funds, directly or indirectly:

  1. To be used in carrying out terrorist activities, or
  2. To finance terrorist organizations.

As an EU member, Portugal is obliged to adhere to the EU’s Financial Action Task Force (FATF) recommendations regarding terrorist financing. Portuguese law imposes penalties for terrorist financing that are similar to those for money laundering.

Portugal’s Key Legislation Against Financial Crimes

The primary legislation against financial crimes in Portugal is the Portuguese Anti-Money Laundering Law, enacted in 2009. The law created a regulatory framework for the prevention, detection, and punishment of money laundering and terrorist financing.

Regulatory Authorities

Two primary regulatory authorities are responsible for enforcing anti-money laundering and counter-terrorism financing rules in Portugal:

  1. Portuguese Securities Market Commission (CMVM)
  2. Central Bank of Portugal (Banco de Portugal)

They oversee the compliance of financial institutions, such as banks and investment firms, within the legal framework.

Reporting Suspicious Transactions

Financial institutions in Portugal must report any suspicious transactions to the Financial Intelligence Unit (SIFE) at the Ministry of Economy. SIFE serves as a central agency for receiving, analyzing, and disseminating suspicious transaction reports.


## Conclusion

Portugal's legal framework against money laundering and terrorist financing is comprehensive and in line with EU regulations. This article has provided an overview of the key definitions, legislation, regulatory authorities, and reporting requirements that make up Portugal's robust regulatory framework against financial crimes.