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On April 17, 2020, Regulation no. 2/2020 ("Regulation") of the Portuguese Securities Market Commission ("CMVM") has entered into force, regulating Law no. 83/2017, of August 18, establishing measures to prevent money laundering and terrorist financing ("LBCFT"), and Law no. 97/2017, of August 23, on the implementation and enforcement of restrictive measures approved by the United Nations or the European Union.
The regulated matters include*:
1. Duty of control
The Regulation provides for the mandatory appointment by the subject entities of a person responsible for compliance with the rules on the prevention of money laundering and terrorist financing, duly qualified pursuant to LBCFT, whose identity must be communicated to CMVM within a maximum period of 5 business days after appointment. The first communication of the identity of the person responsible for regulatory compliance must be made to CMVM within 30 days of the entry into force of the Regulation.
2. Duty of identification and due diligence
The Regulation sets forth the elements to which the entities subject thereto must consider for the purpose of verifying the existence of apparently related occasional operations, for a minimum reference period of 30 days from the most recent operation carried out by the client or group of apparently related clients.
3. Periodic reporting obligations
With regard to the terms of compliance with the periodic reporting duties to CMVM by the relevant entities, the Regulation provides for (a) the preparation and annual submission to CMVM of the information provided for in Annex I or Annex II to the Regulation until February 28 of each year (the information regarding 2018 and 2019 must be submitted by 30 June 2020); (b) financial entities operating in Portugal under the freedom to provide services regime are exempt from this obligation, although such entities must submit to CMVM a report on their activity in Portugal, until February 28 of each year.
The penalty system applicable in the event of failure to comply with the duties set forth in the Regulation will be subject to autonomous regulation by CMVM.
*The Regulation is applicable to: investment companies and other financial companies; securities investment companies and self-managed real estate investment companies; venture capital companies, venture capital investors, venture capital fund management companies, venture capital investment companies and specialised alternative investment companies, self-managed; credit securitisation companies; companies marketing, to the public, contracts relating to investment in tangible assets; consultants for investment in securities; pension fund management companies; auditors registered with CMVM.
