Law No. 83/2017, of 18 August, which sets forth measures to fight Money Laundering and Terrorism Financing, which repeals Law No. 25/2008, of 5 June of 2008, on the same subject, was gazetted.
Among several novelties, the following are worth highlighting:
- Expansion of the scope of application, which now comprises (i) natural and legal entities that render their activity in Portugal as agents of payment institutions headquartered in a different EU Member State, or as agents or distributers of electronic money institutions headquartered in a different EU Member State, (ii) collaborative financing platforms managing entities, in terms of loans and capital, (iii) collaborative financing platforms managing entities, in the form of donations and rewards and (iv) non-profit organizations;
- Enhanced identification and diligence duty, which is now applicable, among others, to occasional transactions of €15,000 or more, as well as to transfers of funds in excess of €1,000;
- Obligation to reinforce the identification and diligence processes when an increased risk of money laundering or terrorism financing is identified. Examples of reinforcement measures are as follows: (i) obtaining additional information on clients, representatives or beneficial owners, as well as of the operations executed, (ii) intervention of higher hierarchical levels to authorise the establishment of business relations or (iii) reduction of the time intervals to update information and further elements gathered when fulfilling the identification and diligence duty;
- Expansion of the duties of the financial and non-financial entities, which comprise measures on the obligation to identify the beneficial owner and the prohibition of anonymity. The criteria to determine the role of beneficial owner and to allow the understanding of the ownsership structure are also defined;
- The list of administrative offenses was increased and fines can reach € 5,000,000;
- Creation of a Beneficial Owner Central Register, which will have information on Beneficial Owners; and
- Strengthening of the powers of the Central Bureau of Investigation and Prosecution (“Departamento Central de Investigação e Acção Penal”).
The new measures shall enter into force on 18 September 2017.
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