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 is generally aligned with international standards in combating corruption, although a recent report highlighted that only a fraction of anti-corruption recommendations have been fully implemented. While U.S. firms do not view corruption as a significant barrier to investment, the country faces challenges with organized crime, including human trafficking and drug smuggling, alongside concerns about the effectiveness of law enforcement and the justice system in addressing these issues.

Portugal's economy is on a growth trajectory, with a GDP increase of 1.9% in 2024, significantly outpacing the EU average. The government actively seeks to attract U.S. investment, which has steadily risen to nearly $12 billion, making the U.S. Portugal's largest non-EU trading partner. Despite challenges such as bureaucratic hurdles and a high emigration rate of skilled workers, Portugal's strategic location, competitive labor costs, and emerging digital economy position it as an appealing destination for foreign direct investment (FDI), particularly in sectors like technology, energy, and tourism.