Introduction
The rapid evolution of financial systems and digital technologies has significantly expanded both the scope and complexity of white-collar crimes, underscoring the need for comprehensive legal reforms.
According to statistical data from the Portuguese Ministry of Justice, there was an increase in reported economic and financial crimes in 2023, particularly concerning money laundering offences. Furthermore, the 2022 Annual Internal Security Report highlighted the frequent suspension of suspicious transactions involving politically exposed persons from Portuguese-speaking countries, or with connections thereto, indicating the utilisation of national financial, corporate, and banking systems for fund movements.
Data released by the Public Prosecutor’s Office further indicates an increase in the number of investigations into economic and financial crimes, with 3,598 new inquiries related to corruption and related offences being initiated in 2023. This marks a significant increase from the 2,865 inquiries that were initiated in 2021. The Public Prosecutor’s Office also reported that 535 banking operations were suspended, leading to the initiation of 535 inquiries.
A national anti-corruption strategy for 2020–24 has been put in place, encompassing measures that aim to foster best practices in transparency and integrity, streamline bureaucratic processes and identify corruption risks within the public sector. The strategy also includes the establishment of whistle-blower channels and ethical codes of conduct, as well as initiatives to engage the private sector in anti-corruption efforts.
Given the significance of this issue in contemporary discourse, this article analyses key legislative developments that occurred in 2024 within both the EU and Portugal, while also highlighting the interaction between national and supranational authorities in harmonising enforcement and compliance mechanisms.
Amendments to the Penal Code by Law No 4/2024 of 15 January 2024
The Portuguese Penal Code was amended by Law No 4/2024 of 15 January 2024. The amendments focused on:
Money laundering
In the context of money laundering offences, the definition of relevant assets has been broadened to encompass those derived from activities such as smuggling, circulation smuggling, the smuggling of goods with conditional circulation on vessels, tax fraud and social security fraud, as outlined in Article 368-A, paragraph (j). This expansion aims to enhance the identification of potential money laundering cases linked to a wider array of illicit activities.
Definition of “public official”
Regarding the definition of “public official”, the Portuguese Penal Code (Article 386, paragraph 3) previously indicated that certain individuals – such as judges, public officials from international organisations, officials from other states, participants in extrajudicial conflict resolution and jurors or arbitrators from foreign jurisdictions – are considered equivalent to public officials in relation to offences like influence peddling (Article 335), receiving or offering undue advantages (Article 372), passive corruption (Article 373) and active corruption (Article 374). With the enactment of Law No 4/2024, this classification has been further extended to encompass the crime of embezzlement (Article 375).
Crimes against the freedom and sexual self-determination of minors
With respect to the amendments regarding crimes against the freedom and sexual self-determination of minors, it is now established that the statute of limitations for criminal proceedings will not expire before the victim reaches 25 years of age if the victim is a minor. This updates the previous threshold of 23 years, as outlined in Article 118, paragraph 5.
Moreover, a new paragraph 5 has been added to Article 119 of the Penal Code, altering the commencement point for the statute of limitations applicable to these crimes. Previously, the starting point was the completion of the crime as per general statute of limitations rules (refer to Article 119, paragraph 1). Revised paragraph 5 specifies that for crimes against the freedom and sexual self-determination of minors, the statute of limitations will only begin when the victim reaches adulthood. However, if the victim dies before reaching this age, the period will start from the date of their death.
These amendments aim to enhance protection for minors and ensure that victims have ample time to pursue justice.
The crime of discrimination and incitement to hatred and violence
In the context of the crime of discrimination and incitement to hatred and violence (Article 240), the legislator has expanded the scope of discrimination factors. It now specifies that individuals who “establish or create an organisation or engage in activities that promote or encourage discrimination, hatred, or violence against a person or group based on their ethnic or racial origin, national or religious origin, color, nationality, ancestry, place of origin, language, sex, sexual orientation, gender identity or expression, sexual characteristics, or physical or mental disability” will face penalties under this law (paragraph 1).
Furthermore, the legislation includes provisions allowing the court to order the removal of digital data or content when these offences are perpetrated through electronic means (paragraph 3). This broadening of the legal framework reflects an increased commitment to combating discrimination and fostering a more inclusive society.
Criminal and administrative offences regarding the misuse of EU funds
Law No 4/2024 has also introduced amendments to Decree-Law No 28/84 in alignment with Directive (EU) 2017/1371, which establishes criminal and administrative offences related to the misuse of EU funds.
These changes reflect a significant improvement in the legal framework governing the use of EU funds, ensuring stricter accountability and compliance.
Amendment to the Penal Code by Law No 15/2024 of 29 January 2024
Law No 15/2024 of 29 January 2024 introduced Article 176-C, which prohibits the so-called sexual conversion practices against LGBT+ individuals, criminalising acts aimed at altering, limiting or repressing sexual orientation, gender identity or gender expression. This changes Law No 38/2018 of 7 August 2018, which “establishes the right to self-determination of gender identity and gender expression and the right to protect each person’s sexual characteristics”, as well as the Penal Code.
Directive (EU) 2024/1203 of the European Parliament and of the Council, of 11 April 2024
Directive (EU) 2024/1203, enacted on 11 April 2024 by the European Parliament and the Council, introduces robust updates to EU environmental protection laws, focusing on stricter criminal penalties for serious environmental violations.
This directive replaces previous legislation, expanding the scope of environmental offences, implementing stringent penalties and offering enhanced support for environmental defenders, alongside improved enforcement tools for authorities, namely by approving the following.
Directive (EU) 2024/1226 of the European Parliament and of the Council, of 24 April 2024
Directive (EU) 2024/1226, adopted on 24 April 2024, establishes minimum rules concerning the definition of criminal offences and penalties for the violation of EU restrictive measures. This directive expands criminal liability to both individuals and entities for actions like unauthorised trade with sanctioned groups, evasion of asset freezes and prohibited service provision (financial, legal, technical) to sanctioned parties.
According to this Directive:
This framework strengthens the EU’s ability to enforce sanctions, ensuring that breaches are effectively addressed at both the national and EU levels.
The Directive’s transposition deadline is May 2025, with an evaluation report due in 2027 to assess its effectiveness and compliance across member states.
Directive (EU) 2024/1640 of the European Parliament and of the Council, of 31 May 2024
Directive (EU) 2024/1640, implemented on 31 May 2024, introduces comprehensive revisions to the EU’s strategy against money laundering and terrorist financing. This directive reinforces existing frameworks, updating prior standards and integrating new safeguards to prevent financial system exploitation.
A central feature of the directive is the focus on beneficial ownership transparency. It provides a unified definition of beneficial owners across EU member states and dictates that companies must disclose detailed ownership information to reduce anonymity in financial dealings. Additionally, it consolidates regulatory oversight, standardising reporting requirements across member states to foster a consistent anti-money laundering (AML) framework that supports information-sharing and collaboration between national authorities.
The directive broadens the scope of entities obligated to adhere to AML regulations, extending requirements to previously less regulated sectors such as cryptocurrency providers, traders of high-value goods and various non-financial intermediaries. By encompassing these sectors, the Directive seeks to limit risks in areas prone to financial exploitation.
Furthermore, this Directive sets out new procedural obligations for monitoring and enforcement, including increased penalties for non-compliance, thereby encouraging both the private and public sectors to adopt stronger preventive measures. Complementing these reforms, the European Anti-Money Laundering Authority (AMLA) was established to ensure consistent application of AML standards and support cross-border AML activities within the EU.
Technology and Criminal Justice
As highlighted in the previous edition, it is also urgent to modernise procedures, leverage more and better technology, digitalise processes and simplify and expedite procedural acts, including notifications.
Currently, the most fundamental of rights – having a comprehensive and timely understanding of the process – is denied to both the defendant and the victim (both having a vested interest in the administration of criminal justice), as well as to other procedural participants who may naturally have a legitimate interest in accessing the process.
The current provision for “consultation” and “obtaining copies” of the process ought to be replaced with the creation of a full digital copy, delivered to the defendant and the victim upon request. This requires the enshrinement of the mandatory digitalisation of every procedural act and its processing through the court’s digital platform, CITIUS.
Previously, electronic notifications using CITIUS were only possible in interactions between the court (court official, judge and prosecutor) and the lawyer, and only for certain actions – ie, not throughout all phases of the process.
However, recently, Order No 266/2024/1 (published on 15 October 2024) introduced significant changes to the electronic processing of judicial matters in Portugal, specifically focusing on the operations of the public prosecution service. This Order expanded the scope of electronic procedures, allowing various judicial acts to be conducted digitally and thereby promoting greater efficiency and transparency within the system. It establishes clear guidelines for the digital management of cases, mandating that all electronic submissions and notifications be handled through a designated court support information system.
The Order aims to standardise practices across the judiciary, ensuring that both ongoing and future processes are managed electronically. This transition is expected to enhance the overall functionality of the judicial system, making it more accessible and streamlined for users.
The provisions outlined in this Order will come into effect on 3 December 2024, marking a significant step towards modernising judicial operations in Portugal.
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