|
|
Sanctions:
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
Portugal is an entry point for narcotics transiting into Europe.
According to officials of the Government of Portugal (GOP), most
of the money laundered in Portugal is narcotics-related. Portugal’
s long coastline, vast territorial waters, and close relationships
with countries in Latin America and Africa make it a gateway
country for Latin American cocaine and drugs coming to Europe
from North Africa. Portuguese authorities have detected proceeds
from smuggled commodities, particularly tobacco products, in the
financial system. Authorities have also noted significant criminal
proceeds from corruption, trafficking in works of art and cultural
artifacts, extortion, embezzlement, tax offenses, and aiding or
facilitating alien smuggling. Currency exchanges and real estate
purchases are often used to launder criminal proceeds.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: 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;
and dealers in high-value goods
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, credit institutions, and investment
companies; life insurance, 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; and traders in high-
value goods
Number of STRs received and time frame: 8,470 in 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 20 in 2010
Convictions: 14 in 2010
Assets forfeited: criminally: $2,390,000 (2010) civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Portugal is a member of the Financial Action Task Force (FATF).
Its most recent mutual evaluation can be found here: http://www.
fatf-gafi.org/infobycountry/0,3380,
en_32250379_32236963_1_70732_43383847_1_1,00.html
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The general legal principle in Portugal is that only individuals are
subject to criminal liability. The criminal code provides for criminal
corporate liability for money laundering and for certain other
crimes.
Portugal considered the imposition of a large currency transaction
reporting requirement but opted not to establish such a program.
____________________________________________________
US State Dept Narcotics Report 2012:
Although not a center of drug production, Portugal continues to
be a gateway for drugs entering Europe, particularly from South
America and western Africa. Drug use remains stable, despite
decriminalization of personal drug use in 2001. Portugal, which is
a party to the 1988 UN Drug Convention, focuses much of its
efforts on treatment and prevention. Portugal is also a member
country of the Maritime Analysis and Operations Center-Narcotics
(MAOC-N), headquartered in Lisbon. Few illegal drugs originate in
Portugal. The vast majority of drugs used in Portugal and passing
through the country originate in South America, Africa, and
southwest Asia.
Drug smugglers have used Portugal as a primary gateway to
Europe in recent years, a task that has been made easier by
open borders among the Schengen Agreement countries and by
Portugal's long coastline. From 2007-2010, Portuguese law
enforcement entities reported a decline in cocaine seizures. In
2011, however, Portuguese authorities seized 1,800 kilograms of
cocaine off the southern coast of Portugal, the largest single
cocaine seizure in Portugal in four years. Traffickers are
increasingly using west African nations, such as former
Portuguese colonies of Guinea Bissau and Cape Verde – which
are ideally suited as a transshipment, refueling, and storage
location points for cocaine-laden vessels from South America en
route to Europe through the Iberian Peninsula. The lack of
effective law enforcement/ interdiction resources in Guinea Bissau
and other African countries, and their linguistic and cultural ties to
Portugal, make this region ideal operating bases for drug
trafficking organizations. Additionally, drug trafficking
organizations continue to use "mules" to enter Europe in smaller,
harder to detect packages and are continuing to use shipping
containers in which secreted drugs are harder for law
enforcement officials to identify. Drug trafficking organizations use
various types of smaller vessels, including high-speed boats and
fishing boats in attempts to smuggle drugs into the country, and
some use the Azores islands as a transshipment point. For
hashish, the primary source country is Morocco, transshipped
through the Southern Iberian peninsula. The Netherlands, Spain,
and Belgium are the primary sources of ecstasy in Portugal. The
U.S. has not been identified as a significant destination for drugs
transiting through Portugal.
Portugal decriminalized drug use for personal consumption in
2001. The law makes the "consumption, acquisition, and
possession of drugs for personal use" a simple administrative
offense. Although overall drug use in Portugal remains roughly
stable and below the EU average, "problem" drug use and HIV
rates among drug users are above the EU norm. Under the
decriminalization law, drug users identified by law enforcement
agencies are referred to the Drug Addiction Dissuasion
Commission, consisting of multi-disciplinary teams that assess
users and decide the most appropriate sanction and referral to
educational or treatment programs. The Portuguese Ministry of
Health’s Institute on Drugs and Drug Addiction (IDT) operates 66
drug treatment centers nationwide. The IDT also has several
initiatives to combat drug use and addiction. Prevention programs
include training sessions, awareness-raising activities, and
dissemination of information through printed material. Universal
drug prevention is part of the Portuguese school curriculum. In
addition, in the “Safe Schools” program, law enforcement agents
patrol the areas surrounding schools to prevent and protect
students from criminal activities such as drug trafficking in the
surrounding area. Law enforcement also actively participates in
awareness and training activities.
Portugal is party to the 1988 UN Drug Convention. Portugal is
also party to the UN Convention against Transnational Organized
Crime (“TOC”) and its protocols against trafficking in persons and
migrant smuggling. In September 2007, Portugal ratified the UN
Convention against Corruption (“CAC”). A Customs Mutual
Assistance Agreement (CMAA) has been in force between
Portugal and the U.S. since 1994. In February 2010, the US-
Portugal protocol implementing the 2003 U.S.-EU Extradition and
Mutual Legal Assistance Agreements entered into force. The
extradition protocol expands the list of extraditable offenses that
were not available under the 1908 US-Portugal Extradition Treaty.
On September 30, 2007, Portugal – along with Ireland, the
Netherlands, Spain, Italy, France, and the United Kingdom –
agreed to work together as part of the Lisbon-based MAOC-N
regional intelligence fusion cum maritime response initiative. As a
member country, Portugal is collaborating to combat the
increasing cocaine flow from South America to Europe and Africa.
As a matter of government policy, Portugal does not encourage or
facilitate illicit production or distribution of narcotic or psychotropic
drugs or other controlled substances, or the laundering of
proceeds from illegal drug transactions.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Portugal is a destination, transit, and source country for women,
men, and children subjected to sex trafficking and forced labor.
Trafficking victims found in Portugal are from Brazil, Eastern
Europe, and Africa. According to the government, an increased
number of Portuguese girls are subjected to forced prostitution
within the country. Men from Eastern European countries and
Brazil are subjected to forced labor in agriculture, construction,
hotels, and restaurants. According to local observers and media
reports, Portuguese men and women are subjected to forced
labor or forced prostitution after migrating to other destinations in
Europe. Children from Eastern Europe, including Roma, are
subjected to forced begging, sometimes by their families. Two-
thirds of the 21 trafficking victims identified by the government in
2010 were male.
The Government of Portugal fully complies with the minimum
standards for the elimination of trafficking. In 2010, the
government demonstrated increased victim assistance by
granting more residency permits to trafficking victims and it
continued to provide subsidies to NGOs providing comprehensive
care and assistance to victims. While the majority of traffickers
convicted under the government’s anti-trafficking law received
significant jail time, it was unclear how many other offenders
convicted under anti-pimping statutes were actual traffickers. The
government used anti-pimping statutes to secure other
convictions for offenders who may have been involved in human
trafficking; these convictions significantly outnumbered the
number of identified trafficking victims, suggesting a lack of
adequate efforts to identify and assist victims.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Portugal worked proactively with other nations to combat terrorism
and disrupt funding for terrorist groups. Because Portugal does
not have any indigenous terrorist groups, the legal system and
law enforcement focus is on preventing international groups from
establishing operations on its soil.
Portuguese and American officials shared counterterrorism
information effectively, including information on threat
assessments and terrorist operative activities. In cooperation with
other European Union partners, the Portuguese government
continued to participate actively in ongoing EU efforts to remove
institutional barriers to cooperation on counterterrorism.
In September 2008, the Government of Portugal created a new
Secretary General for Internal Security, a move designated to
facilitate communication between the Judicial Police, Public
Security Police, and the National Republican Guard. As a result,
the distinct law enforcement agencies were able to share
information about terrorism investigations more effectively.
In August 2009, Portugal accepted two Guantanamo detainees for
resettlement.
Portugal contributed approximately 145 Portuguese troops that
were deployed in Afghanistan in support of ongoing International
Security Assistance Force and NATO operations, including a C-
130 transport aircraft with a supporting crew of 42 personnel on a
three-month mission to support Afghan elections in August.
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
Portugal is an entry point for narcotics transiting into Europe.
According to officials of the Government of Portugal (GOP), most
of the money laundered in Portugal is narcotics-related. Portugal’
s long coastline, vast territorial waters, and close relationships
with countries in Latin America and Africa make it a gateway
country for Latin American cocaine and drugs coming to Europe
from North Africa. Portuguese authorities have detected proceeds
from smuggled commodities, particularly tobacco products, in the
financial system. Authorities have also noted significant criminal
proceeds from corruption, trafficking in works of art and cultural
artifacts, extortion, embezzlement, tax offenses, and aiding or
facilitating alien smuggling. Currency exchanges and real estate
purchases are often used to launder criminal proceeds.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: 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;
and dealers in high-value goods
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, credit institutions, and investment
companies; life insurance, 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; and traders in high-
value goods
Number of STRs received and time frame: 8,470 in 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 20 in 2010
Convictions: 14 in 2010
Assets forfeited: criminally: $2,390,000 (2010) civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Portugal is a member of the Financial Action Task Force (FATF).
Its most recent mutual evaluation can be found here: http://www.
fatf-gafi.org/infobycountry/0,3380,
en_32250379_32236963_1_70732_43383847_1_1,00.html
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The general legal principle in Portugal is that only individuals are
subject to criminal liability. The criminal code provides for criminal
corporate liability for money laundering and for certain other
crimes.
Portugal considered the imposition of a large currency transaction
reporting requirement but opted not to establish such a program.
____________________________________________________
US State Dept Narcotics Report 2012:
Although not a center of drug production, Portugal continues to
be a gateway for drugs entering Europe, particularly from South
America and western Africa. Drug use remains stable, despite
decriminalization of personal drug use in 2001. Portugal, which is
a party to the 1988 UN Drug Convention, focuses much of its
efforts on treatment and prevention. Portugal is also a member
country of the Maritime Analysis and Operations Center-Narcotics
(MAOC-N), headquartered in Lisbon. Few illegal drugs originate in
Portugal. The vast majority of drugs used in Portugal and passing
through the country originate in South America, Africa, and
southwest Asia.
Drug smugglers have used Portugal as a primary gateway to
Europe in recent years, a task that has been made easier by
open borders among the Schengen Agreement countries and by
Portugal's long coastline. From 2007-2010, Portuguese law
enforcement entities reported a decline in cocaine seizures. In
2011, however, Portuguese authorities seized 1,800 kilograms of
cocaine off the southern coast of Portugal, the largest single
cocaine seizure in Portugal in four years. Traffickers are
increasingly using west African nations, such as former
Portuguese colonies of Guinea Bissau and Cape Verde – which
are ideally suited as a transshipment, refueling, and storage
location points for cocaine-laden vessels from South America en
route to Europe through the Iberian Peninsula. The lack of
effective law enforcement/ interdiction resources in Guinea Bissau
and other African countries, and their linguistic and cultural ties to
Portugal, make this region ideal operating bases for drug
trafficking organizations. Additionally, drug trafficking
organizations continue to use "mules" to enter Europe in smaller,
harder to detect packages and are continuing to use shipping
containers in which secreted drugs are harder for law
enforcement officials to identify. Drug trafficking organizations use
various types of smaller vessels, including high-speed boats and
fishing boats in attempts to smuggle drugs into the country, and
some use the Azores islands as a transshipment point. For
hashish, the primary source country is Morocco, transshipped
through the Southern Iberian peninsula. The Netherlands, Spain,
and Belgium are the primary sources of ecstasy in Portugal. The
U.S. has not been identified as a significant destination for drugs
transiting through Portugal.
Portugal decriminalized drug use for personal consumption in
2001. The law makes the "consumption, acquisition, and
possession of drugs for personal use" a simple administrative
offense. Although overall drug use in Portugal remains roughly
stable and below the EU average, "problem" drug use and HIV
rates among drug users are above the EU norm. Under the
decriminalization law, drug users identified by law enforcement
agencies are referred to the Drug Addiction Dissuasion
Commission, consisting of multi-disciplinary teams that assess
users and decide the most appropriate sanction and referral to
educational or treatment programs. The Portuguese Ministry of
Health’s Institute on Drugs and Drug Addiction (IDT) operates 66
drug treatment centers nationwide. The IDT also has several
initiatives to combat drug use and addiction. Prevention programs
include training sessions, awareness-raising activities, and
dissemination of information through printed material. Universal
drug prevention is part of the Portuguese school curriculum. In
addition, in the “Safe Schools” program, law enforcement agents
patrol the areas surrounding schools to prevent and protect
students from criminal activities such as drug trafficking in the
surrounding area. Law enforcement also actively participates in
awareness and training activities.
Portugal is party to the 1988 UN Drug Convention. Portugal is
also party to the UN Convention against Transnational Organized
Crime (“TOC”) and its protocols against trafficking in persons and
migrant smuggling. In September 2007, Portugal ratified the UN
Convention against Corruption (“CAC”). A Customs Mutual
Assistance Agreement (CMAA) has been in force between
Portugal and the U.S. since 1994. In February 2010, the US-
Portugal protocol implementing the 2003 U.S.-EU Extradition and
Mutual Legal Assistance Agreements entered into force. The
extradition protocol expands the list of extraditable offenses that
were not available under the 1908 US-Portugal Extradition Treaty.
On September 30, 2007, Portugal – along with Ireland, the
Netherlands, Spain, Italy, France, and the United Kingdom –
agreed to work together as part of the Lisbon-based MAOC-N
regional intelligence fusion cum maritime response initiative. As a
member country, Portugal is collaborating to combat the
increasing cocaine flow from South America to Europe and Africa.
As a matter of government policy, Portugal does not encourage or
facilitate illicit production or distribution of narcotic or psychotropic
drugs or other controlled substances, or the laundering of
proceeds from illegal drug transactions.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Portugal is a destination, transit, and source country for women,
men, and children subjected to sex trafficking and forced labor.
Trafficking victims found in Portugal are from Brazil, Eastern
Europe, and Africa. According to the government, an increased
number of Portuguese girls are subjected to forced prostitution
within the country. Men from Eastern European countries and
Brazil are subjected to forced labor in agriculture, construction,
hotels, and restaurants. According to local observers and media
reports, Portuguese men and women are subjected to forced
labor or forced prostitution after migrating to other destinations in
Europe. Children from Eastern Europe, including Roma, are
subjected to forced begging, sometimes by their families. Two-
thirds of the 21 trafficking victims identified by the government in
2010 were male.
The Government of Portugal fully complies with the minimum
standards for the elimination of trafficking. In 2010, the
government demonstrated increased victim assistance by
granting more residency permits to trafficking victims and it
continued to provide subsidies to NGOs providing comprehensive
care and assistance to victims. While the majority of traffickers
convicted under the government’s anti-trafficking law received
significant jail time, it was unclear how many other offenders
convicted under anti-pimping statutes were actual traffickers. The
government used anti-pimping statutes to secure other
convictions for offenders who may have been involved in human
trafficking; these convictions significantly outnumbered the
number of identified trafficking victims, suggesting a lack of
adequate efforts to identify and assist victims.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Portugal worked proactively with other nations to combat terrorism
and disrupt funding for terrorist groups. Because Portugal does
not have any indigenous terrorist groups, the legal system and
law enforcement focus is on preventing international groups from
establishing operations on its soil.
Portuguese and American officials shared counterterrorism
information effectively, including information on threat
assessments and terrorist operative activities. In cooperation with
other European Union partners, the Portuguese government
continued to participate actively in ongoing EU efforts to remove
institutional barriers to cooperation on counterterrorism.
In September 2008, the Government of Portugal created a new
Secretary General for Internal Security, a move designated to
facilitate communication between the Judicial Police, Public
Security Police, and the National Republican Guard. As a result,
the distinct law enforcement agencies were able to share
information about terrorism investigations more effectively.
In August 2009, Portugal accepted two Guantanamo detainees for
resettlement.
Portugal contributed approximately 145 Portuguese troops that
were deployed in Afghanistan in support of ongoing International
Security Assistance Force and NATO operations, including a C-
130 transport aircraft with a supporting crew of 42 personnel on a
three-month mission to support Afghan elections in August.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| PORTUGAL |
| KnowYourCountry |
|
___________________________________________________
AML News / Relevant information
June 16, 2011 - Recent statement on the economic conditions in
Portugal extracted from IMF Report
Read Statement (internal link)
Links:
Worldwide AML Legislation (International Bar Association)
|
| Last Updated: 16 April 2012 |