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 progress in combating corruption, with a January 2024 report indicating that only three out of fifteen anti-corruption recommendations from GRECO were satisfactorily implemented by the end of 2023. While U.S. firms do not see corruption as a significant barrier to investment, the country has enacted several laws to enhance transparency and accountability, including a national anti-corruption strategy approved in December 2021. However, corruption remains a concern, particularly at the municipal level, despite existing legal frameworks and the establishment of independent bodies to address these issues.

Portugal's economy experienced a robust GDP growth of 6.7% in 2022, followed by a growth rate of 2.3% in 2023, largely driven by the tourism and real estate sectors. The labor market remains resilient with an unemployment rate of 6.5% in 2023, while inflation is projected to decrease to 2.9% in 2024. The government is committed to reducing fiscal debt, achieving a sovereign debt level of 99% of GDP in 2023.

Portugal maintains an open-door policy towards foreign direct investment (FDI), requiring prior approval only for sensitive sectors related to national security. The government promotes trade and investment through the Portuguese Agency for Foreign Investment and Commerce (AICEP), which facilitates foreign investments and provides support for projects exceeding certain financial thresholds. In 2023, U.S. FDI inflows to Portugal quadrupled to €2.1 billion, highlighting the country's attractiveness for foreign investors, particularly in technology and renewable energy sectors.