Portugal – Know Your Customer (KYC) Rules

 

 

 

Portugal is an entry point for narcotics transiting into Europe. Officials of the Government of Portugal (GOP) indicate the majority of money laundered in Portugal is narcotics-related. Its long coastline, vast territorial waters and privileged relationships with countries in Latin America and Africa make it a gateway country for Latin American cocaine and a trans-shipment point for drugs coming from West Africa entering Europe.

Portuguese authorities have also detected criminal funds being placed into the financial system from smuggled commodities, particularly tobacco products. Authorities also have noted significant criminal proceeds from corruption, traffic in works of art and cultural artifacts, extortion, embezzlement, tax offenses, and facilitating illegal immigration. Currency exchanges and real estate purchases are often used for laundering criminal proceeds.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

Portugal – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Portuguese Law:

    • Banks, Credit institutions and investment companies
    • Financial leasing, factoring, and mutual guarantee companies
    • Electronic money institutions
    • Life insurance, pension fund management, and credit securitization companies
    • Venture capital and venture capital funds management companies
    • Collective investment entities
    • Postal service entities
    • Casinos and lotteries
    • Property dealers
    • Lawyers, accountants, and auditors
    • Dealers in high-value goods

Portugal – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 1,287 in 2010

Number of CTRs received and time frame: 9,336 in 2010

The following is a list of STR covered entities covered by Portuguese Law:

    • Banks, Credit institutions and investment companies
    • Life insurance companies
    • Financial leasing, factoring, and mutual guarantee companies
    • Electronic money institutions
    • Pension fund management, credit securitization, venture capital, and venture capital funds management companies
    • Collective investment entities
    • Postal service entities
    • Casinos and lotteries
    • Property dealers
    • Lawyers, accountants, and auditors
    • Traders in high-value goods

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: 80 in 2010
Convictions: 12 in 2010

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

Although the general legal principle in Portugal is that only individuals are subject to criminal liability, there are exceptions. The criminal code, as revised in 2007, provides for criminal corporate liability for money laundering and certain other crimes.