White-Collar Crime 2024

Last Updated October 24, 2024

Portugal

Trends and Developments


Authors



Rogério Alves e Associados (RA) is a full-service law firm with a national and international reach, established in 2013 in Lisbon, Portugal. The firm consists of several lawyers, all of whom have a love for the profession and track records of success. RA is a recognised and well-known law firm experienced in criminal law. The six lawyers who comprise the team have amassed a great amount of experience, covering most types of proceedings commonly found in criminal law. The team vigorously represents clients, namely in the context of so-called economic and financial crimes (white-collar crimes), crimes against honour and property, and regulatory offences litigation, whose scope, importance and intensity continues to grow. The connection between the lawyer and the court is historical and traditional; RA does justice to this tradition.

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:

  • the crime of money laundering;
  • the definition of “public official” (which defines the range of possible agents involved in crimes committed in the exercise of public functions);
  • crimes against the freedom and sexual self-determination of minors;
  • the crime of discrimination and incitement to hatred and violence; and
  • criminal and administrative offences regarding the misuse of EU funds.

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.

  • Crime of misuse of EU funds: As outlined in the new Article 37-A, paragraph 1 of Decree-Law No 28/84, using a legally obtained benefit derived from EU funds – excluding those from VAT-related resources – for unintended unlawful purposes, resulting in a loss or undue advantage exceeding EUR100,000, will incur a penalty of up to five years in prison. This offence is distinct from the crime of misuse of grants or subsidies as defined in Article 37, paragraph 1 of the same law, which prescribes a prison sentence of up to two years or a fine of no less than 100 days for using grants or subsidies for purposes other than their intended use. If the loss or undue advantage related to the misuse of EU funds amounts to more than EUR10,000 but less than EUR100,000, as stated in paragraph 2 of the new Article 37-A, the punishment will instead be up to two years in prison or a fine of up to 240 days. Furthermore, according to paragraph 3 of Article 37-A, this misconduct will also be subject to penalties if it arises from an omission that violates duty of office responsibilities. This criminalisation is a result of transposing Directive (EU) 2017/1371, which addresses fraud impacting the EU’s financial interests. Consequently, the relevance of this legal provision for the jurisdiction of the European Public Prosecutor’s Office is significant, as noted in Article 4 of Council Regulation (EU) 2017/1939 and Article 3, paragraph 2, point (c), subparagraph (iii) of the Directive.
  • Administrative offence of misuse of EU funds of a lesser amount: The newly introduced Article 72-A of Decree-Law No 28/84, established by Law No 4/2024 and titled “Misuse of European Union Funds of a Lesser Amount”, defines an administrative offence. This offence is committed when an individual uses a legally obtained benefit – whether through an act or omission violating their duties – derived from EU funds (excluding those from VAT resources) for unintended purposes, leading to a loss or advantage of less than EUR10,000. The penalties for this administrative offence range from EUR5,000 to EUR20,000.

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.

  • The directive increases the catalogue of criminal environmental offences from nine to 20. Newly defined offences include illicit trafficking of timber, unlawful ship recycling, illegal water abstraction, significant breaches of EU chemical regulations and activities linked to invasive species.
  • Member states must impose substantial penalties for environmental crimes. Individuals may face up to ten years in prison if their actions result in death, with a minimum sentence of five years for other severe crimes. For companies, fines can reach up to EUR40 million or 5% of annual global turnover for major violations, supporting the “polluter pays” principle. Grave offences causing irreversible or large-scale harm invoke harsher penalties akin to “ecocide” charges.
  • Aggravating factors, such as permanent ecosystem damage or crimes by organised groups, lead to more severe sentences. Conversely, defendants who promptly undertake voluntary remediation efforts may receive reduced sentences under certain mitigating provisions.
  • Member states must incorporate comprehensive measures on liability, asset freezing and confiscation, statute of limitations, investigative powers and jurisdiction. The directive also strengthens legal protections for environmental defenders and provides enforcement bodies with improved co-operation channels through entities such as Europol, Eurojust and the European Public Prosecutor’s Office.
  • EU member states are required to integrate these standards by May 2026, with regular monitoring to ensure compliance. The European Commission will review the directive’s impact by 2028 and assess potential updates by 2031.

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:

  • prohibited actions include circumventing trade restrictions, providing financial or material support to restricted entities and failing to meet reporting requirements – these rules apply particularly to dual-use goods, military items and financial services, with negligence-based violations being punishable if related to sensitive or military technologies;
  • transactions under EUR10,000 may not trigger criminal prosecution unless repeatedly conducted by the same party – severe violations, particularly those involving dual-use or military items, may lead to up to five years’ imprisonment, with additional sanctions like fines or professional restrictions.
  • legal professionals are safeguarded under confidentiality laws, while certain humanitarian organisations operating under specified conditions are exempted from penalties, balancing enforcement with fundamental rights and practical needs in humanitarian contexts; and
  • member states must adopt measures for asset freezing and confiscation, and the Directive mandates effective investigative tools – the Directive also promotes co-ordinated enforcement within the EU, leveraging collaboration with bodies such as Europol and the European Public Prosecutor’s Office to support cross-border efforts.

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.

Rogério Alves & Associados

Av Álvares Cabral
61–4º andar
1250-017
Lisboa
Portugal

+351 21 391 10 40

+351 21 391 10 41

geral@raassociados.pt www.raassociados.pt
Author Business Card

Trends and Developments

Authors



Rogério Alves e Associados (RA) is a full-service law firm with a national and international reach, established in 2013 in Lisbon, Portugal. The firm consists of several lawyers, all of whom have a love for the profession and track records of success. RA is a recognised and well-known law firm experienced in criminal law. The six lawyers who comprise the team have amassed a great amount of experience, covering most types of proceedings commonly found in criminal law. The team vigorously represents clients, namely in the context of so-called economic and financial crimes (white-collar crimes), crimes against honour and property, and regulatory offences litigation, whose scope, importance and intensity continues to grow. The connection between the lawyer and the court is historical and traditional; RA does justice to this tradition.

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