Portugal Country Summary

FATF Status

Portugal is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Portugal was undertaken by the Financial Action Task Force (FATF) in 2017. According to that Evaluation, Portugal was deemed Compliant for 12 and Largely Compliant for 22 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.

Portugal has made significant strides in combating corruption through legislative reforms and the establishment of independent bodies, yet challenges remain in fully implementing anti-corruption recommendations. While corruption is not seen as a barrier to foreign investment, the country faces issues with organized crime, human trafficking, and financial misconduct, necessitating ongoing vigilance and improvement in law enforcement and governance.

Portugal's economy has shown resilience, with a GDP growth rate of 2.3% in 2023 following a robust 6.7% growth in 2022, driven primarily by the tourism and real estate sectors. The country has seen a significant influx of U.S. tourists and foreign investment, particularly from the U.S., which quadrupled to €2.1 billion in 2023, making it Portugal's top investor. However, challenges persist, including rising inflation, a slight increase in unemployment, and potential political instability following the resignation of Prime Minister Costa, which could impact future growth projections, expected to slow to 1.6% in 2024.