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PROPOSED LAW NO. 173 /X

Exhibition of Motives

The proposed law now presented establishes the regime for preventing and suppressing the

bleaching and financing of terrorism, by proceeding to the transposition to

internal legal order of Directive No 2005 /60/CE, of the European Parliament and of the

Council, of October 26, 2005, on money laundering and the

financing of terrorism, as well as of Commission Directive No 2006 /70/CE of

August 1, 2006, which sets out measures and instructions for the transposition of the Directive

n. 2005 /60/CE, and adapts the national system to the international standards in force,

notably at 40 + 9 Recommendations of the GAFI-Financial Action Task Force on

The Laundering of Capitals and the Financing of Terrorism, and the Convention of the

Council of Europe on Bleaching, Detection, Seizure and Loss of the

Products of Crime and the Financing of Terrorism, signed by Portugal in 17 of

May 2005.

This proposed Act also makes the first amendment to the Act No 52/2003 of 22

of August, the Law to Combat Terrorism, and repeal the Prevention and Repression Act

of the Laundering of Advantages of Illicit Provenance in force, Law No. 11/2004, of

March 27.

In relation to Law No. 11/2004 of March 27, currently in force, it goes on to cover-

if also the financing of terrorism and the type of funding crime is created

of terrorism, by acceding to Article 5-A to Law No. 52/2003 of August 22, amending

still the articles 2, 4 and 8 of this law.

On the other hand, the present proposal of law enshrines enhanced identification duties,

communication, cooperation and diligence, distinguishing between general duties of the

subject entities and special duties for financial entities and for entities not

financial.

The cooperation duties of the financial and non-financial entities subject, to the

the authorities and with the Financial Information Unit of the Judiciary Police (UIF),

are reinforced and, in turn, the UIF, also sees legally consecrated its

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powers, mainly of access to information.

The set of the subject, financial and non-financial entities, namely, is

extended to entities that provide services of representation and administration to centres

of collective interests and the people who build up for sale, without intermediaries.

It is enshrined the concept of "politically exposed people", such as the people who

play or have played until a year ago, high positions of a political nature or

public, as entities that can offer special risk of bleaching.

It is also defined as the reasoned assessment criteria at the risk of the operations, with

seen to identify situations of "reduced risk of bleaching" and still from

"occasional or limited financial activity" and is determined to be more severe measures of

control of the clientele, on the part of the owners of the casinos.

As for the sanctionatory regime, the constant regime of this proposed law may

consider yourself innovative in so far as it considers that the violation of standards

regulatory constitutes counterordinance punishable under the law, the counter-ordinations

they cease to be divided into counter-ordinations and counter-ordinations especially

serious, going on to be an ancillary sanction of interdiction of the exercise of the profession,

or of the activity to which the counterordinance respects and assigns the sanctionatory competence

to those of the administrative authorities.

The Superior Council of the Magistrature, the Superior Council of the Magistrature, shall be heard

Prosecutor's Office and the National Commission for Data Protection.

Thus:

We have the point d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

CHAPTER I

General provisions

Section I

Object and concepts

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Article 1.

Subject

1-A present law establishes measures of a preventive and repressive nature of combating the

bleaching of advantages of illicit provenance and financing of terrorism and

transposes to the internal legal order Directive No 2005 /60/CE, of Parliament

European and of the Council of October 26, 2005 and Directive No 2006 /70/CE, of the

Commission of August 1, 2006 on the prevention of the use of the system

financial and the activities and occupations specially designated for the purpose of

money-laundering and financing of terrorism.

2-The bleaching and financing of terrorism are prohibited and punished in the

terms of the applicable criminal law.

Article 2.

Concepts

For the purposes of this Law shall be understood by:

(1) "Entities subject", the entities referred to in Articles 3 and 4 of this Law.

2) "Business relation", the relationship of a commercial or professional nature between the

subject entities and their customers who, at the time it is established, are expected to

come to be or be enduring.

3) "Occasional Transaction", any transaction carried out by the entities subject outside

of the scope of an already established business relationship.

4) "Centres of collective interests without legal personality", the patrimonies

autonomous, such as condos of real estate in horizontal property, inheritances

jacent and trusts of foreign law, when and on the terms in which they are recognized

by domestic law.

5) "Beneficial beneficiary", the natural person on account of who is held a

transaction or activity or which ultimately holds or controls the customer,

should cover at least:

a) In the event that the client is a legal person of a societal nature:

i) The natural persons who ultimately detain the property or the

control, direct or indirect, of at least the equivalent of 25% of the

social capital or the voting rights of the legal person, other than

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a listed company on a regulated market subject to requirements

of information consenting to Community legislation or standards

equivalent international ones;

ii) Natural persons who, in any other way, exercise control

of the management of the legal person.

b) In the event that the client is a legal person of a non-societtal nature, such

as a foundation, or a centre of collective interests without personality

legal, which administer and distribute funds:

i) Natural persons benefiting from at least 25% of their

heritage, when future beneficiaries have already been

determined;

ii) The category of persons in whose primary interest the legal person or

the centre of collective interests without legal personality was

constituted or exerts its activity, when future beneficiaries

have not been further determined;

iii) Natural persons who exercise control over at least 25% of the

heritage of the collective person or the centre of collective interests without

legal personality.

6) "Politically Exposed Persons", the natural persons who perform, or

played until a year ago, high positions of a political or public nature, as well as

the close members of your family and people who admittedly have with them

close relations of a societary or commercial nature. For the purposes set out in the

present number, consider:

a) High offices of a political or public nature:

i) Heads of State, Heads of Government and members of the Government,

specifically Ministers, Secretaries and Undersecretaries of State;

ii) Deputies or members of national parliamentary chambers.

iii) Members of supreme courts, of constitutional courts, of

courts of accounts and other high-profile judicial bodies, whose

decisions may not be subject to appeal, save in circumstances

exceptional;

iv) Members of administrative and supervisory bodies of central banks;

v) Heads of diplomatic missions and consular posts;

vi) High ranking officers of the Armed Forces;

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vii) Members of administrative and supervisory bodies of companies

public;

viii) Members of the executive bodies of the European Communities and the Bank

European Central;

ix) Members of executive bodies of organizations of international law.

b) Close members of the family:

i) The spouse or de facto united;

ii) The parents, the children and the respective spouses or united in fact.

c) People with recognized and close relationships of a society-like nature or

commercial:

i) Any natural person, who is notoriously known as

joint owner with the holder of the high office of a political nature or

public from a legal person, from a centre of collective interests

without legal personality or that with it has business relations

next;

ii) Any natural person who is the owner of the social capital or the

voting rights of a legal person or of the heritage of a centre

of collective interests without legal personality, which is

notoriously known as having as sole beneficial owner the

holder of the high office of a political or public nature.

7) "Bank of facade", the institution of credit constituted in State or jurisdiction, in the

what that one does not have a physical presence involving administration and management and that not

is found to be integrated into a regulated financial group.

8) "Country third country equivalent", what would appear from the Government Member's porterie

responsible for the area of finance, as having schemes equivalent to the national in

matter for the prevention of the laundering and financing of terrorism and

supervision of these duties, and, in relation to information requirements applicable to the

listed companies on regulated market, what is listed in the list approved by the

Commission of the Securities Market (CMVM).

9) " Service Providers to societies, to other legal persons and centres of

collective interests without legal personality ", any person who, by title

professional, provides third parties with the following services:

a) Constitution of societies, other legal persons or centres of interests

collective without legal personality as well as the provision of related services

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of representation, management and administration to such entities or to centres of

collective interests without legal personality;

b) Performance of roles of administrator, secretary or partner of a society

or of another legal person or similar position in a centre of interest

collective without legal personality.

10) "Financial Information Unit", the national central unit with competence

to receive, analyze and disseminate the information suspected of bleaching or of

financing of terrorism, instituted by the Decree-Law No. 304/2002, 13 of

December.

SECTION II

Scope of application

Article 3.

Financial entities

1-Are subject to the provisions of this Law the following entities, with registered office in

national territory:

a) Credit institutions;

b) Investment firms and other financial companies;

c) Entities that have their post the management or marketing of funds of

capital of risk;

d) Collective investment bodies that market their units of

participation;

e) Insurance companies and insurance mediators that exercise the said activity

in the paragraph c) of Article 5 of the Decree-Law No 144/2006 of July 31, with

the exception of the linked insurance mediators mentioned in Article 8 of the

referred to as a decree-law, in so far as they exercise activities within the branch

"Life";

f) Holding companies of pension funds;

g) Credit securitisation companies;

h) Companies and investors of venture capital;

i) Consulting companies for investment;

j) Companies marketing goods or services allocated to investment in

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tangible goods.

2-They are also covered in branches located in Portuguese territory of the

entities referred to in the previous number with headquarters abroad, as well as branches

exterior financial.

3-A This Law shall also apply to entities providing postal services and to the Office

of Management of Treasury and Public Credit, I. P., as it prestakes services

financial to the public.

4-For the purposes of this Law, the entities referred to in the preceding paragraphs are

designated "financial entities".

Article 4.

Non-financial entities

They are subject to the provisions of this Law the following entities, which exercise

activity on national territory:

a) Game exploration concessionaires in casinos;

b) Premium paying entities of bets or lotteries;

c) Entities that carry out real estate and purchase mediation activities and

resale of real estate as well as constructor entities that proceed on sale

direct real estate;

d) Merchants who transfer goods whose payment is made in

cash, in amount equal to or greater than € 15000, regardless of the

transaction being carried out through a single transaction or various operations

apparently related to each other;

e) Official reviewers of accounts, official technical of accounts, external auditors and

tax advisors;

f) Notaries, conservatives of records, lawyers, solicitors and others

independent professionals, constituted in society or in individual practice,

that intervene or assist, on account of a customer or other circumstances,

in operations:

i) Of purchase and sale of immovable property, commercial establishments and

social participations;

ii) From management of funds, securities or other assets owned by

customers;

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iii) Of openness and management of bank, savings or value accounts

securities;

iv) From creation, exploitation, or management of companies or structures of nature

analogous as well as of centres of collective interests without

legal personality;

v) Financial or real estate, in representation of the customer;

vi) From divestant and acquisition of rights on practitioners of activities

professional sports.

g) Providers of services to companies, other legal persons or centres of

collective interests without legal personality, which are not covered in the

points e) and f) .

Article 5.

Activities carried out on an ancillary and limited basis

This Law shall not apply to companies in the tourist and travel sectors,

authorized to exercise, in an accessory and limited manner, the manual exchange activity of

currency, pursuant to the provisions of the Decree-Law No. 295/2003 of November 21.

CHAPTER II

Duties of the subject entities

SECTION I

General duties

Article 6.

Duties

The subject entities are obliged, in the exercise of their respective activity, to the

compliance with the following general duties:

a) Duty of identification;

b) Duty of due diligence;

c) Duty of refusal;

d) Duty of conservation;

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e) Duty of examination;

f) Duty of communication;

g) Duty of abstention;

h) Duty of collaboration;

i) Duty of secrecy;

j) Duty of control;

l) Duty of training.

Article 7.

Duty of identification

1-The subject entities shall require and verify the identity of their customers and of the

respective representatives:

a) When they establish business relationships;

b) When they carry out occasional transactions of an amount equal to or greater than € 15

000, regardless of whether the transaction is carried out through a single

operation or of various operations that appear to be related to each other;

c) When it is suspected that the operations, regardless of their value and of

any exception or threshold, may be related to the crime of

bleaching or financing of terrorism, taking into account,

notably, its nature, complexity, atypical or uncustomary character

in relation to the profile or activity of the customer, values involved, frequency,

place of origin and destination, economic and financial situation of the actors or

means of payment used;

d) When there are doubts as to the veracity or suitability of the data of

identification of the customers, previously obtained.

2-In the case of game exploration dealers in casinos and entities

betting premium payers or lotteries, the duty of identification applies to

of the values provided for, respectively, in the paragraph a) of Article 32 (1) and in the article

33.

3-A verification of identity shall be carried out:

a) In the case of natural persons, upon presentation of original paper

valid with photography, from which it is const the full name, date of birth and the

nationality;

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b) In the case of legal persons, through the person identification card

collective, of a certificate of the commercial register or, in the case of non-residents in

national territory, of equivalent document.

4-When the customer is a legal person or a centre of collective interests without

legal personality or, in any case, whenever there is knowledge or founded

suspects that a customer does not act on their own, must the subject entities

get from the customer information that allows to know the identity of the beneficial owner,

the appropriate measures of verification of the same, depending on the

risk of bleaching or financing of terrorism.

Article 8.

Time of verification of identity

1-A verification of the identity of the customer, of its representatives and, where the case is,

of the beneficial owner must take place at the time the relationship is established

of business or prior to the realization of any occasional transaction.

2-Without prejudice to the provisions of the preceding paragraph, when the risk of bleaching or

of financing of terrorism is limited and if the contrary does not result from norm

legal or regulatory applicable to the activity of the subject entity, the verification of the

identity predicted in the previous number can be completed after the start of the relationship of

business, if this is shown to be indispensable for the execution of the operation, owing the

identification procedures to be completed in the shortest possible time.

3-In the case of opening bank deposit accounts, credit institutions do not

may allow the realization of any movements to debit or credit in the account

subsequent to the initial deposit, make any payment instruments available

on the account or carry out any changes in its title, while not if

show verified the identity of the customer, in accordance with the legal provisions or

applicable regulations.

4-In the case of "Life" insurance contracts, the verification of the identity of the beneficiary

of the policy may occur after established the business relationship, but always before

or upon payment of any benefit or before or at the date on which the

beneficiary intends to exercise the rights conferred by the policy.

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Article 9.

Duty of due diligence

1-In addition to the identification of customers, representatives and actual beneficiaries, the

subject entities must:

a) Take appropriate measures to understand the structure of ownership and of

control of the customer, when this is a legal person or a centre of

collective interests without legal personality;

b) Obtain information on the purpose and the intended nature of the relationship of

business;

c) Get information, when the customer's risk profile or the characteristics of the

operation justifies it, about the origin and fate of the bustling funds in the

scope of a business relationship or in the realization of an occasional transaction;

d) Maintain a continuous monitoring of the business relationship, in order to ensure

that such transactions are consenting to the knowledge that the entity has

of the activities and the risk profile of the customer;

e) Keep updated the elements of information obtained in the course of the relationship

of business.

2-Due diligence procedures in relation to the clientele are applicable either to the

new customers, both existing ones, in a regular manner and depending on the level of risk

existing.

Article 10.

Suitability for the degree of risk

1-In the performance of the identification and due diligence duties provided for in the articles

7. and 9, the subject entities may adapt the nature and extent of the procedures

of verification and of the diligence measures, depending on the risk associated with the type of

client, business relationship, product, transaction and origin or destination of funds.

2-The subject entities must be in a position to demonstrate the suitability of the

procedures adopted in the terms of the preceding paragraph, where this is

requested by the competent supervisory or supervisory authority.

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Article 11.

Simplified due diligence

1-Saved when there are suspected bleaching or financing of the

terrorism, the subject entities are exempted from the performance of the duties

set out in Articles 7 and 9 in the following situations:

a) When the customer is a financial entity established in any State

member of the European Union, or in a third country equivalent in respect of

prevention of the bleaching and financing of terrorism;

b) When the customer is a listed company whose securities have

been admitted to trading on a regulated market within the meaning of the article

199. of the Securities Code, in the wording given by the Decree-Law

n 357-A/2007 of October 31 in any Member State of the Union

European as well as listed companies in markets of third countries and which

are subject to information disclosure requirements equivalent to the

required by the Community legislation, as advertised to be carried out by the

supervisory authority of the respective sector;

c) When the customer is the State, Autonomous Regions or local authorities

or a legal person of public law, of any nature, integrated into the

central, regional or local administration;

d) When the customer is an authority or public body subject to practices

transparent and subject accounting accounting, including the institutions

provided for in the Treaty that established the European Community and others to come

to be set out in list to be released by porterie of the member of the Government

responsible for the area of finance;

e) When the customer is the entity providing postal services or the Institute of

Management of Treasury and Public Credit, I. P.

2-The provisions of the preceding paragraph shall also apply to the actual beneficiaries of

accounts-open customers in credit institutions, titled by lawyers or

solicitors set up in Portugal, provided that you find yourself assured, upon

statement provided before the institution where the account is open and at the moment

of the opening, the immediate provision of the identity of the beneficial owner, when

requested by the credit institution.

3-In the cases provided for in the preceding paragraphs, the subject entities must, in

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any case, collect enough information to check if the customer falls

in one of the referred categories or professions, as well as follow up with the negotiating relationship

in order to be able to detect complex transactions or abnormally high value

that do not appear to have economic objective or lawful end.

Article 12.

Duty of enhanced due diligence

1-Without prejudice to the fulfillment of the provisions of Articles 7 and 9, the entities subject

should apply increased diligence measures in relation to customers and operations

that, by their nature or characteristics, may reveal a greater risk of

bleaching or financing of terrorism.

2-There are always applicable measures increased due diligence to the operations carried out at

distance and especially to those that may favour anonymity, to operations

carried out with politically exposed persons who reside outside the national territory,

to the banking correspondence operations with credit institutions established in

third countries and any others designated by the supervisory authorities or

monitoring of the respective sector, provided that it is legally enabled for the purpose.

3-Without prejudice to regulations issued by the competent authorities, in cases

where the operation takes place without the customer or their representative being

physically present, the verification of identity can be complemented by one of the

following means:

a) Documents or supplementary information deemed appropriate for

check or certify the data provided by the client faculty,

specifically, by a financial entity;

b) Realization of the first payment pertaining to the operation through an account

open on behalf of the client together with a credit institution.

4-As for business relations or occasional transactions with people politically

exposed residents outside the national territory, the subject entities must:

a) Have appropriate and risk-based procedures to determine whether the

client can be considered a politically exposed person;

b) Get authorization from the immediate hierarchy before establishing relations of

business with such customers;

c) Take the necessary measures to determine the origin of the heritage and the

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funds involved in business relations or occasional transactions;

d) Carry out an increased continuous monitoring of the business relationship.

5-The scheme provided for in the preceding paragraph shall continue to apply to whom, having

left out of having the quality of a politically exposed person, continue to represent a

heightened risk of bleaching or financing of terrorism, due to its

profile or the nature of the developed operations.

Article 13.

Duty of refusal

1-The subject entities shall refuse to carry out any transaction in bank account,

start a business relationship or carry out any occasional transaction, when:

a) The elements provided for in Article 7 for the identification are not provided

of the customer, his representative or the beneficial owner, if there is any;

b) No information provided for in Article 9 shall be provided on the structure of

ownership and control of the customer, the nature and purpose of the business relationship

and the origin and fate of the funds.

2-Where the refusal provided for in the preceding paragraph occurs, the entities subject

should look at the circumstances that determined it and, if they suspect that the situation

may be related to the practice of a crime of bleaching or of

financing of terrorism, must carry out the communication provided for in Article 16 and

ponder by term of the business relationship.

Article 14.

Duty of conservation

1-The copies or references to the supporting documents of the line of duty

of identification and due diligence should be retained for a period of seven years

after the time when identification has sued or, in the case of relations of

business, after the term of the same.

2-The originals, copies, references or any lasting supports, with identical

probative force, the supporting documents and records of the operations shall

be always kept, so as to allow the reconstitution of the operation, during a

period of seven years from its implementation, albeit, in the case of inserting into a

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business relationship, this latter is already over.

Article 15.

Duty of examination

1-Without prejudice to the duty of enhanced due diligence, the subject entities must examine

with special care and attention, in accordance with your professional experience, any

conduct, activity or operation whose characterizing elements make it

particularly likely to be able to be related to the bleaching or the

financing of terrorism.

2-For the purposes of the preceding paragraph, especially the following elements

characterizers:

a) The nature, purpose, frequency, complexity, invulgarity and the

ativeness of conduct, activity or operation;

b) The apparent non-existence of an economic objective or a lawful end

associated with conduct, activity or operation;

c) The amount, the origin and destination of the bustling funds;

d) The means of payment used;

e) The nature, the activity, the operative pattern and the profile of the actors.

f) The type of transaction or product that may particularly favour anonymity.

3-The results of the examination referred to in paragraph 1, shall be reduced in writing and

preserved for the minimum period of five years, staying at the disposal of the auditors

when there are and the supervisory and supervisory entities.

4-A afferition of the degree of suspicion evidenced by conduct, activity or

operation does not necessarily presuppose the existence of any kind of documentation

confirmatatory of suspicion, before the assessment of the concrete circumstances, to the

light of the due diligence criteria required of a professional, in the analysis of the situation.

Article 16.

Duty of communication

1-The subject entities must, on their own initiative, immediately report to

Financial Information Unit whenever they know, suspect or have reasons

enough to suspect that it took place, it is ongoing or an operation has been attempted

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likely to set up the practice of the crime of bleaching or financing the

terrorism.

2-The information provided in the terms of the previous number may only be

used in criminal proceedings, and may not be disclosed, under any circumstances, the identity of

who provided them.

Article 17.

Duty of abstention

1-The subject entities shall refrain from carrying out any operation whenever

know or suspect to be related to the practice of the crimes of bleaching or

of financing of terrorism.

2-A The subject entity shall inform the Financial Information Unit that if

refrained from performing the operation, to which it immediately transmits this information to the

Prosecutor-General of the Republic, and may this determine the suspension of the execution of the

suspicious operation notifying, for the purpose of, the subject entity.

3-A suspended operation may, however, be carried out if the order of suspension is not

confirmed by the criminal instruction judge within two working days of the

communication carried out by the subject entity, under the terms of the preceding paragraph.

4-In the event that the subject entity considers that the abstention referred to in paragraph 1 is not

possible or that, after consultation with the Financial Information Unit, may be

liable to harm the prevention or future research of the bleaching or the

financing of terrorism, the operation can be carried out, and the entity subject

provide, immediately, to that Unit the information relating to the operation.

Article 18.

Duty of collaboration

The subject entities shall promptly provide the collaboration required by the Unit

of Financial Information for the performance of their duties, by the authority

judicial officer responsible for the direction of the investigation or by the competent authorities for

the monitoring of the performance of the duties laid down in this Law, according to the

respective legal skills, in particular by providing the information and

presenting the requested documents or records.

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Article 19.

Duty of secrecy

1-The subject entities, as well as the members of their respective social bodies, the

in them exercise managerial, managerial or managerial roles, their employees, the

mandators and other persons who provide them with service on a permanent basis, temporary

or occasional, may not reveal to the customer or to third parties that they have conveyed to the Unit of

Financial Information communications legally due or that is found in

course a criminal investigation.

2-Do not constitute breach of duty enunciated in the preceding paragraph, the disclosure of

information, legally due, to the supervisory or supervisory authorities of the

duties provided for in this Law, including the professional regulatory bodies of the

activities or occupations subject to this Law.

3-The provisions of paragraph 1 also shall not prevent the disclosure of the information, for the purposes of

prevention of the bleaching and financing of terrorism:

a) Between institutions that integrate the same business group within the meaning of the

articles 2 and 3 of the Decree-Law No. 145/2006 of July 31 and which are found to be

established in member states or equivalent third countries in matter

of prevention of the bleaching and financing of terrorism;

b) Among persons referred to in points e) and f) of Article 4 established in a State

member or in a third country equivalent in the prevention of the

bleaching and financing of terrorism, which prestakes service or are

employees of the same legal person or a group of companies to which

this belonging, with property or common administration bodies.

4-The provisions of paragraph 1 shall not also be impediment that financial entities and

non-financial entities provided for in points e) and f) from article 4 exchange with each other

information that respects a common negotiating relationship, relative to the same customer,

provided that they do so with the sole purpose of preventing bleaching and the

financing of terrorism and all entities are subject to obligations

equivalents of professional secrecy and personal data protection and meet

established in member states of the European Union or in a third country equivalent

on the prevention of the laundering and financing of terrorism.

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Article 20.

Protection in the provision of information

1-The information provided in good faith by the subject entities, in the fulfillment of the

duties listed in Articles 16, 17 and 18, do not constitute infringement of any

duty of secrecy, tax by legislative, regulatory or contractual, nor

imply, for whom the pay-off, responsibility of any kind.

2-Who, albeit with mere neglect, reveal or favor the discovery of the

identity of who provided information, under the articles referred to in the number

previous, is punished with imprisonment for up to three years or with penalty of fine.

Article 21.

Duty of control

The subject entities must define and apply internal policies and procedures that if

show appropriate to the performance of the duties laid down in this Law,

in particular in internal control, risk assessment and management and of

internal audit, in order to effectively prevent bleaching and funding

of terrorism.

Article 22.

Duty of training

1-The subject entities shall adopt the necessary measures for the leaders and

employees, whose functions are relevant for the purposes of preventing the

bleaching and the financing of terrorism, have adequate knowledge

of the obligations imposed by the legislation and regulations in force in this matter.

2-The measures provided for in the preceding paragraph shall include specific programmes and

regular training, suitable for each sector of activity, which enable their

recipients to recognize operations that may be related to the practice

of those crimes and to act in accordance with the provisions of this Law and of the

respective regulatory standards.

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Section II

Specific duties of financial entities

Article 23.

Specific duties

1-Financial entities are subject to the duties set out in Article 6, with the

specifications laid down in the following articles and the standards that regulate the

mentioned duties, issued by the respective supervisory authorities, on the terms

of this Law and of the diplomas which regulate the respective activity.

2-Under no circumstances is the opening of accounts or the existence of notebooks allowed

anonymous.

Article 24.

Execution of duties by third parties

1-Financial entities, excluding exchange agencies, shall be allowed to

allow the execution of the duties of identification and diligence in relation to the clientele,

set out in Article 7 and in the paragraphs a) a c) of Article 9 (1), in an entity

third, in the terms to be regulated by the respective supervisory authorities, when

this is:

a) A financial entity referred to in Article 3 (1), established in territory

national and that is not a foreign exchange agency;

b) A financial entity of a similar nature to those authorized in the present

number, with registered office in the European Union or in a third country equivalent in

prevention of the prevention of the bleaching and financing of terrorism.

2-The financial entities that have recourse to third parties to ensure compliance with the

duties provided for in the preceding paragraph retain responsibility for the exact

fulfillment of those duties, as if they were their direct executors and must

have immediate access to information regarding the respective implementation.

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Article 25.

Specific duty of simplified due diligence

1-Saved when there are suspected bleaching or financing of the

terrorism, financial entities are exempted from the performance of the duties

set out in Articles 7 and 9, in the following situations:

a) In the case of issuance of electronic money, whose monetary value, stored

electronically, represent a credit on the issuer, which is the counterpart of the

receipt of funds in value not less than the monetary value issued and that is

accepted by diverse companies of the issuer, if the device cannot be

recharged, or if it can be so, when the limit that can be traded

during the calendar year does not exceed € 2500, unless an amount equal to

€ 1000 be rescued in that calendar year by the holder pursuant to Art. 3 para.

Directive No. 2000 /46/CE, of the European Parliament and of the Council, of 18 of

September 2000;

b) In the "Life" insurance and pension funds contracts or aforay products of

similar nature, whose annual premium or contribution is not greater than € 1

000, or whose unique premium does not exceed € 2500;

c) In the insurance contracts associated with pension plans as long as it does not

contain a rescue clause nor can they be used to ensure

loans;

d) In pension schemes, supplementary pension plans or schemes

similar to payment of retirement benefits to workers

employees, with contributions made by deducting deduction on wages and whose

regime veers to the beneficiaries the possibility of transfer of rights.

2-Financial entities are also exempted from the line of duty

enunciated in Article 7 in the insurance contracts, operations of the "Life" branch and plans to

pensions, provided that the payment of the premium or contribution is carried out by debit

of, or check drawn on, an open account in the name of the insured, in an institution

of credit subject to the duties provided for in Article 6.

21

Article 26.

Specific duty of enhanced due diligence

1-Financial entities that are credit institutions should also apply

enhanced measures of due diligence to cross-border relations of correspondence

banking with institutions established in third countries.

2-For the effects of the previous number, credit institutions must obtain

sufficient information about the corresponding institution, in order to understand the

nature of its activity, evaluate its internal control procedures in

matter for the prevention of the laundering and financing of terrorism and to appreciate,

on the basis of publicly known information, its reputation and characteristics

of the respective supervision.

3-A matching relationship must be authorized at the level of the immediate hierarchy and the

respective responsibilities must be reduced in writing.

4-In the event that the matching relationship involves matching accounts of

transfer, the credit institution must confirm that it has been verified the identity of the

client who has direct access to the account and that the duty of due diligence is observed by

part of the respondent institution, further assuring that those elements can

be provided for your request.

Article 27.

Specific duty of communication

In case of operations that reveal special risk of bleaching or of

financing of terrorism, particularly when they relate to a

certain country or jurisdiction subject to additional countermeasures decided by the

Council of the European Union, the supervisory authorities of the respective sector may

determine the duty to communicate such operations to the Information Unit

Financial, when your amount is equal to or greater than € 5000.

22

Article 28.

Specific duty of collaboration

Financial entities must possess systems and tools that enable them to

respond, in a prompt and cabal manner, to the requests for information submitted by the

Financial Information Unit and the judicial authorities legally

competent, intended to determine whether they hold or maintained, in the last five

years, business relations with a particular natural or legal person and which to

nature of these relations.

Article 29.

Branches and subsidiaries in third countries

1-Financial entities, in respect of their branches or subsidiaries in which they detain

a majority shareholding, established in third countries, shall:

a) Apply measures equivalent to those provided for in this Law in respect of duties

of identification, of diligence, of conservation and of training;

b) Communicate the internal policies and procedures defined in compliance with the

provisions of Article 21, which show themselves applicable in the scope of the activity of the

branches and subsidiaries.

2-In case the legislation of the third country does not allow the implementation of the measures provided for in the

point ( a) of the preceding paragraph, the financial entities shall inform the

respective supervisory authorities and take supplementary measures aimed at

preventing the risk of bleaching and financing of terrorism.

Article 30.

Banks of facade

1-It is vedated to credit institutions to establish matching relationships with

façade benches.

2-Credit institutions must still dilitigate in the sense of not establishing

correspondence relations with other credit institutions that admittedly

allow your accounts to be used by face-benches.

3-As soon as the institutions have knowledge that they maintain a relationship of

23

correspondence with entities referred to in the preceding paragraphs, shall terminate the

that relationship.

Section III

Specific duties of non-financial entities

Article 31.

Specific duties

Non-financial entities are subject to the duties set out in Article 6, with the

specifications laid down in the following articles and in the regulatory standards issued

by the member of the Government responsible for the respective sector of activity or by the

legally competent surveillance authorities for the purpose.

Article 32.

Game exploration dealers in casinos

1-Casinos game exploration dealers stay subject to the following

duties:

a) Identify the frequenters and check their identity at the entrance to the room of

game or when to acquire or exchange game tokens, or symbols

conventional usable to play, in a total amount equal to or greater than € 2

000, in a same departure in the traditional game rooms or in a same

operation in the remaining game rooms;

b) Issue, in the game rooms, cheques yours in exchange for tokens or symbols

conventional only to the order of the identified frequenters who, in the same

departure, have them acquired through bank card or cheque no

unutilized and in the maximum amount equivalent to the somatory of those

acquisitions;

c) Issue, in the game rooms and of automatic machines, cheques your for

premium payments only to the order of the award-winning frequenters

previously identified and resulting from the combinations of the plan of

payments of the machines or accrued premium systems.

2-A The identity of the frequentlers shall always be the subject of registration.

24

3-The cheques referred to in points b) and c) of paragraph 1 are compulsorily nominative and

crusaders, with an indication of prohibitive endorsement clause.

4-Communications to be made pursuant to this Law shall be made by the

administration of the dealership.

Article 33.

Premium paying entities of bets or lotteries

The entities that proceed to payments to winners of betting awards or

lotaries, of an amount equal to or more than € 5000, shall carry out identification and

verification of the identity of the beneficiary of the payment.

Article 34.

Entities with real estate activities

1-Natural or legal persons who exercise the activity of mediation

real estate, as well as the activity of buying, selling, buying for resale or exchange

of real estate, and the activity of, directly or indirectly, decide, boost,

program, drive and finance, with own resources or alheios, construction works of

buildings, with a view to their subsequent transmission or ceding, to which title is to, must

proceed, together with the Institute of Construction and Real estate, I. P.:

a) To the communication, in the legally foreseen terms, of the date of commencement of the activity

of real estate mediation, of the activity of buying, selling, buying for resale

or exchange of real estate, or of the activity of, directly or indirectly, decide,

boost, program, drive and finance, with own resources or alheios,

construction works of buildings, with a view to their subsequent transmission or

ceding, whatever the title is, accompanied by the access code to the certificate

permanent of the commercial register, within a maximum of 60 days from the date

of verification of any of these situations;

b) To the semestral submission, in own model, of the following elements on each

transaction carried out:

i) Clear identification of actors;

ii) Overall amount of the legal business;

iii) Mention of the respective representative titles;

25

iv) Means of payment used;

v) Identification of real estate.

2-Natural or legal persons, who have already started the activities referred to

in the preceding paragraph shall carry out the communication provided for in the paragraph a) of this number

no later than 90 days from the date of entry into force of this Law.

3-A communication referred to in para. a) of paragraph 1 shall be accompanied by certif of the

Commercial Registration, if the entity does not post the permanent certificate referred to in that

point.

Article 35.

Lawyers and solicitors

1-In the performance of the duty of communication provided for in Article 16, the lawyers and

the solicitors communicate the suspicious operations, respectively, to the bastonary of the

Order of Lawyers and the Speaker of the House of Solicitors, by fit to these

entities to be communication, ready and without filtering, to the Financial Information Unit,

without prejudice to the provisions of the following number.

2-Dealing with lawyers or solicitors and being in question the operations referred to

in the paragraph f) of Article 4, are not covered by the duty of communication, the information

obtained in the context of the evaluation of the legal situation of the client, in the context of the consultation

legal, in the exercise of its defence mission or representation of the client in a proceeding

judicial, or the respect of a judicial process, including counselling relating to

way to propose or avoid a process, as well as the information that is obtained

before, during or after the process.

3-The provisions of the preceding paragraphs shall also apply to the exercise by the

lawyers and solicitors of the abstention and collaboration duties provided for in the

articles 17 and 18, competing for those professionals, within the scope of the duty of

collaboration, as soon as they are asked for assistance by the judicial authority,

communicate it to the bastonary of the Bar of Lawyers or to the Speaker of the House of

Solicitors, providing these with the requested elements for the purpose of the provisions of the n.

1

26

Article 36.

Deterrence of the practice of activity

The attempt to deterrence a customer from carrying out an act or activity, considered

illegal pursuant to this Law, by the persons referred to in points e) and f) of Article 4 para.

does not set disclosure of prohibited information pursuant to Rule 19 (1).

Article 37.

Specific duty of training

In the event that the non-financial entity subject is a natural person, who exercises its

professional activity, as a worker of a legal person, the duty of

training provided for in Article 22 focuses on the legal person.

Chapter III

Supervision and surveillance

Article 38.

Authorities

The monitoring of the performance of the duties provided for in this Law shall compete:

a) In the case of financial entities:

i) To the Bank of Portugal, to the Securities Market Commission and

to the Insurance Institute of Portugal, within the framework of the respective

attributions;

ii) To the Minister responsible for the area of finance, concerning the

Institute of Treasury Management and Public Credit, I. P.

b) In the case of non-financial entities:

i) To the Portuguese Tourism Games Inspection Service, I. P.,

concerning the entities referred to in points a) and b) of Article 4;

ii) To the Institute of Construction and Real estate, I. P., relatively to the

entities referred to in paragraph c) of Article 4;

iii) To the Food and Economic Safety Authority relatively to the

entities referred to in the paragraph d) of Article 4 and relatively the auditors

27

external, tax advisors, service providers to societies and

centres of collective interests without legal personality, and others

independent professionals referred to in para. f) of Article 4, always

that are not subject to the supervision of another such authority

in this paragraph.

c) To the Order of Official Accounts Reviewers, regarding the official reviewers

of accounts;

d) To the Chamber of Accounts Officers of Accounts, regarding the official technicians of

accounts;

e) To the Institute of the Registries and the Notariat, I. P., regarding notaries and the

record conservatives;

f) To the Order of Lawyers, concerning the lawyers;

g) To the House of Solicitors, relatively to the solicitors.

Article 39.

Competencies

1-Within the scope of the respective assignments, it is up to the supervisory authorities and

surveillance referred to in the previous article:

a) Regulate the conditions of exercise, the duties of information and

enlightenment, as well as the instruments, mechanisms and formalities of

application, necessary for the effective performance of the duties provided for in the

Chapter II, always with observance of the principles of legality, necessity,

suitability and proportionality;

b) Scrutinise compliance with the standards set out in this Law and of the

corresponding regulatory diplomas of sectoral application;

c) To institute and instruct the respective counterordinational procedures and,

as the case may be, apply or propose the application of sanctions.

2-Supervision authorities in the financial sector conduct reciprocal consultations,

directly or through the institutional bodies of their own, before they issue

regulation on the matter laid down in this Law, to prevent any

possible overlap, gap or opposition between the respective regulatory standards.

28

Article 40.

Duty of communication of the authorities

1-Whenever, in the performance of their duties, the supervisory authorities of the

financial and supervisory entities of non-financial entities have

knowledge or suspicion of facts likely to be able to set up the practice of the

crime of bleaching or financing of terrorism, must participate in them,

promptly, to the Financial Information Unit, should the communication not yet have

been accomplished.

2-The duty of communication provided for in the preceding paragraph shall also apply to

authorities responsible for the supervision of the managing companies of markets of

securities, managing companies of settlement systems and systems

centralized securities and foreign exchange management companies.

3-The information provided pursuant to paragraphs 1 and 2 shall apply to the provisions of the article

20.

Chapter IV

Information and statistics

Article 41.

Access to information

For the performance of its tasks of prevention of the bleaching and the

financing of terrorism, the Financial Information Unit has access, in

useful time, financial, administrative, judicial and police information, which it is subject to

to the provisions of Article 16 (2).

Article 42.

Dissemination of information

It is up to the supervisory authorities of the financial and supervisory sector of the entities

non-financial, including professional regulation bodies, as well as the

Financial Information Unit, within the framework of its tasks and competences

legal, issue alerts and disseminate up-to-date information on trends and practices

29

known, for the purpose of preventing bleaching and financing of the

terrorism.

Article 43.

Return of information

The Financial Information Unit shall give the timely return of information to

subject entities and the supervisory and supervisory authorities on forwarding

and the result of the suspected bleaching and financing communications of the

terrorism by those communicated.

Article 44.

Collection, maintenance and publication of statistical data

1-It is up to the Financial Information Unit to prepare and maintain up-to-date data

statistics for the number of suspicious transactions reported and the

forwarding and result of such communications.

2-The judicial and police authorities must refer annually to the Directorate General of the

Policy for Justice the statistical data relating to bleaching and financing

of terrorism, namely the number of cases investigated, of persons accused in

judicial process, of convicted persons, as well as the amount of the frozen goods,

apprehended or declared lost in favour of the State.

3-It is up to the Directorate-General for Justice Policy to make the publication of the data

statistics collected on prevention of bleaching and financing of the

terrorism.

Chapter V

Counterordinational regime

Section I

General provisions

30

Article 45.

Application in space

Whatever the nationality of the agent, the provisions of this Chapter shall apply to:

b) Facts practiced in Portuguese territory;

c) Facts practiced outside the national territory of which they are responsible

entities referred to in Articles 3 and 4, acting through branches or

in provision of services, as well as persons who, in relation to such entities,

find themselves in some of the situations provided for in the paragraph c) of the Article 1 (1)

next;

d) Facts practiced on board of Portuguese ships or aircraft, unless treated or

international convention to the contrary.

Article 46.

Responsibility

1-By the practice of counter-ordinations referred to in this chapter may be

held accountable:

a) The financial entities;

b) Non-financial entities, with the exception of lawyers and solicitors;

c) Natural persons who are members of the social bodies of the entities

referred to in the previous paragraphs or that they exercise managerial positions, managerial

or management, or act on their representation, legal or voluntary, and, still, in the

case of breach of duty provided for in Article 19, its employees and others

people who provide them with permanent or occasional service.

2-Legal persons are responsible for the offences when the facts have

been practiced, in the exercise of the respective functions or in their name or by their account,

by the holders of their social bodies, mandators, representatives, employees or

any other permanent or occasional collaborators.

3-A The responsibility of the legal person does not increase individual responsibility

of the respective agents.

4-Do not preclude the individual liability of agents the circumstance of the legal type

of the offence requires certain personal elements and these only if they occur in the person

collective, or require the agent to practise the fact in his or her interest, having that act

31

in the interest of outrain.

5-A The unvalidity and legal ineffectiveness of the acts in which the relationship between the

individual agent and the legal person shall not prevent the provisions of the provisions of the

previous numbers.

Article 47.

Negligence

The negligence is always punishable, in that case being reduced to half the limits

maximum and minimum of the fine.

Article 48.

Fulfillment of the omitted duty

1-Whenever the counterordinance results from the omission of a duty, the application of the

sanction and the payment of the fine do not waive the offender of their compliance, if this

is still possible.

2-The offender may be subject to the injunction of fulfilling the omitted duty.

Article 49.

Prescription

1-The procedure relating to the counter-ordinations provided for in this chapter prescribes in the

term of five years from the date of its practice.

2-The fines and ancillary penalties prescribe within five years of the day

in which the administrative decision becomes final or of the day on which the court decision

transiting on trial.

Article 50.

Fate of fines

Regardless of the stage at which it becomes final or transite on trial the decision

condensation, the product of the fines reverses in 60% in favour of the State and in 40% to

Please:

32

a) From the Deposit Guarantee Fund created by Article 154 of the General Regime

of the Credit Institutions and Financial Societies, approved by the Decree-Law

n. 298/92 of December 31 in the case of fines applied to entities

financial in processes where the decisional competence falls to the Bank of

Portugal;

b) From the System of Indemnification to Investors, created by the Decree-Law n.

222/99, of June 22, in the case of fines imposed in proceedings in which the

decision-making competence falls to the Commission of the Securities Market;

c) From Tourism of Portugal, I. P., in the case of fines applied in processes in which

the decisional competence kayba to the Tourism Games Inspection Service of

Portugal I. P.;

d) From the authority responsible for the instruction of the proceedings in the remaining cases.

Article 51.

Responsibility for the payment of the fines

1-Legal persons respond in solidarity with the payment of the fines and the

costs in which they are sentenced to their leaders, mandators, representatives or

employees for the practice of offences punishable under this Act.

2-The holders of the administration bodies of legal persons who, may do so-

lo, have not been opposed to the practice of the infringement responds individual and secondarily

for the payment of the fine and the costs in which those are condemned, albeit the

Same, at the date of the conviction, hajam has been dissolved or entered into liquidation.

Article 52.

Subsidiary law

The offences provided for in this Chapter shall be subsidally applicable to the general scheme

of the counter-ordinations.

Section II

Illicit from mere social ordering

33

Article 53.

Counter-ordering

They constitute counter-ordinance the following typical illicit facts:

a) The failure to comply with the obligations to identify and verify the identity of

customers, representatives and actual beneficiaries, in violation of the provisions of the

article 7, in the a) of paragraph 1 and in Article 32 (2) and Article 33;

b) The realization of the verification procedures of the identity of customers,

representatives and actual beneficiaries with failure to comply with the constant rules

of paragraphs 1, 2 and 4 of Article 8 on the temporal moment in which the same

must take place;

c) The permission to carry out debit movements or credit in accounts of

bank deposit, the provision of payment instruments on those

accounts or the realization of changes in the title of them, when not

preceded by the verification of the identity of the customers, in violation of the provisions of the

n Article 8 (3);

d) The failure to comply with the procedures and due diligence measures in the

points a) a e) of Article 9 (1);

e) The non-adequacy of the nature and extent of the verification procedures of the

identity and measures of due diligence to the existing degree of risk, in violation of the

provisions of Article 10 (1), as well as the absence of demonstration of such

suitability before the competent authorities, in violation of the provisions of paragraph 2

of the same article;

f) The adoption of simplified procedures in the fulfillment of the duties of

identification and diligence, with failure to comply with the conditions and terms provided for

in Articles 11 and 25;

g) The omission, total or partial, of increased measures of diligence to customers and

operations likely to reveal a greater risk of bleaching or of

financing of terrorism and cross-border relations of correspondence

banking with institutions established in third countries, in violation of the

willing, respectively, in Articles 12 and 26;

h) Failure to comply with the duty of refusal to carry out operations into account

bank, of establishment of business relations or of realization of

occasional transactions, when the elements of

34

identification or the elements of information referred to, respectively, in the

points a) and b) of Article 13 (1);

i) The non-realization of the analysis regarding the circumstances that determined the

refusal of an operation, business relationship or the occasional transaction and the

respective communication to the Financial Information Unit, in violation of the

provisions of Article 13 (2);

j) The absence of conservation of the originals, copies, references or other supports

demonstrative long-lasting of the fulfilment of identification duties and

diligence and the carrying out of the operations, in the terms and by the deadlines set out,

respectively, in Article 14 (1) and (2).

l) The failure to examine the duty to examine with special care and attention the

conduits, activities or operations likely to be related to

with the bleaching or financing of terrorism, in violation of the

provisions of Article 15 (1);

m) The failure to comply with the obligations to register, file and make available the

results of the examination of ducts, activities or suspicious operations, in

violation of the provisions of Article 15 (2);

n) The absence of immediate communication to the Financial Information Unit of

operations likely to set up the practice of the crime of bleaching or of

financing of terrorism, in violation of the provisions of Article 16;

o) Failure to comply with the duty to refrain from enforcement of suspicious transactions

provided for in Article 17 (1) and of the obligations of immediate provision of

information to the Financial Information Unit provided for in paragraphs 2 and 4 of the

same article;

p) The non-acatation of orders of suspension of the execution of suspicious operations

determined in accordance with Article 17 (2), as well as the execution of such

operations after the judicial confirmation of the suspension order provided for in paragraph 3

of the same article;

q) The non-provision of ready collaboration to the Financial Information Unit, à

judicial authority responsible for the direction of the inquiry or the authorities

competent for the monitoring of the performance of the duties enshrined in the

this law, in violation of the provisions of Article 18;

r) The revelation, to customers or to third parties, of the transmission of communications to the

Financial Information Unit or the pendency of an investigation

35

criminal, in violation of the provisions of Article 19 (1);

s) The disclosure and exchange of information between entities referred to in paragraphs 3

and 4 of Article 19 with failure to comply with the purposes, conditions and terms there

anticipated;

t) The absence of definition and application of internal policies and procedures of

control, in violation of the provisions of Article 21;

u) The non-adoption of measures and programmes for dissemination and training in respect of

prevention of the bleaching and financing of terrorism, in violation of the

provisions of Articles 22 and 37;

v) The opening of accounts or the existence of anonymous notebooks, in violation of the

provisions of Article 23 (2);

x) The recourse to the execution of identification and diligence duties by entities

third parties, with failure to comply with the conditions and terms provided for in Article 24;

z) The absence of communication to the Financial Information Unit of operations

that reveal special risk of bleaching or financing of terrorism

and whose reporting obligation has been determined by the authority of

sector supervision, in violation of the provisions of Article 27;

aa) The non-existence of systems and tools that enable financial entities

respond promptly and fully to the requests for information submitted by the

Financial Information Unit or by the judicial authorities, in violation

of the provisions of Article 28;

bb) The failure to comply with the obligations to implement preventive measures

equivalents, of communication of internal policies and procedures, of

provision of information to supervisory or supervisory authorities and to

adoption of supplementary preventive measures, in the context of the activity of

branches and subsidiaries in a third country, in violation of the provisions of Article 29;

cc) The establishment or maintenance of relationships with façade seats or with

credit institutions that with this relate, in violation of the provisions of the

article 30;

dd) The issuance of cheques to the order of casinos with noncompliance

of the conditions and terms set out in the paragraphs b) and c) of paragraph 1 and paragraph 3 of the article

32.

ee) The failure to comply with the obligations of communication imposed on entities with

real estate activities, in violation of the provisions of Article 34;

36

ff) Failure to comply with the injunction issued in accordance with Article 48 (2);

gg) The violation of constant standards of sectoral regulatory diplomas

issued in the application of this Law, in the exercise of the competence provided for in the

point ( a) of Article 39 (1)

Article 54.

Fines

The counter-ordinations provided for in the preceding article are punishable on the following terms:

a) Where the offence is practiced in the scope of the activity of an entity

financial:

i) With fine of € 25000 a € 2 500,000, if the agent is a person

collective;

ii) With fine of € 12500 a € 1250000, if the agent is a person

singular.

b) Where the offence is practiced in the scope of the activity of an entity not

financial, with the exception of lawyers and solicitors:

i) With fine of € 5000 a € 500000, if the agent is a legal person;

ii) With fine of € 2500 a € 250000, if the agent is a natural person.

Article 55.

Ancillary sanctions

Jointly with the fines, they can be applied to the person responsible for any of the

counter-ordinances provided for in Article 53 the following ancillary sanctions, depending on the

gravity of the offence and the fault of the agent:

a) Interdiction, for a period up to three years, of the exercise of the profession or of the

activity to which the counterordinance respects;

b) Inhibition, for a period up to three years, of the exercise of social positions and of

functions of administration, steering, managerial and surveillance in legal persons

covered by this Law, when the offender is a member of the social organs,

exercise managerial, managerial or managerial positions or act in legal representation or

voluntary of the legal person;

c) Publication of the definitive punishment, at the expense of the offender, in a broadside newspaper

37

diffusion in the locality of the registered office or the permanent establishment of the offender or,

if this is a natural person, in the locality of your residence.

Section III

Procedural provisions

Article 56.

Competence of administrative authorities

1-Regarding the counter-ordinations practiced by financial entities, the

finding of the offences, the procedural instruction and the application of fines and penalties

ancillary are from the competence of the Bank of Portugal, of the Market Committee of

Securities or the Insurance Institute of Portugal, depending on the sector

financial under which the offence and the Ministry of the

Finance and the Public Administration as to the Institute of Treasury Management and the

Public Credit, I. P.

2-Regarding the counter-ordinations practiced by non-financial entities, without

prejudice to the provisions of the following number, they are competent for the finding of the

infractions, procedural instruction and the application of the fines and ancillary sanctions the

supervisory entities and the professional regulatory bodies, provided for in the

points a) a e) of Article 38, in the framework and in accordance with their assignments.

3-In the case of the processes in which the fact-finding and the instruction fall to the Authority of

Food and Economic Security, the competence for the application of fines and sanctions

ancillary is from the Commission for the Application of Coimas in Economic Matters and of

Publicity, provided for in the Decree-Law No. 208/2006 of October 27.

Article 57.

Judicial competence

1-The court competent for the judicial challenge, review or execution of any

decision handed down in counterordinance process by a supervisory authority

of the financial entities is the Court of Small Criminal Instance of Lisbon.

2-In the case of the application of decisions referred to in paragraph 1 in proceedings of against-

ordinance in which a non-financial entity is argued, the competent court is the

38

of the Comarch of Lisbon or that of the comarch of the area of the registered office or residence of that entity,

at the choice of this.

Chapter VI

Disciplinary offences

Article 58.

Offences practiced by lawyers

1-A infringement by any lawyer of the duties to which he is adstrated in accordance with

present law implies the opening of disciplinary procedure by the Order of Lawyers

in the general terms, in accordance with the Statute of the Order of Lawyers.

2-The applicable disciplinary penalties are:

a) Fine between € 2500 and € 250000;

b) Suspension up to 2 years;

c) Suspension for more than 2 and up to 10 years;

d) Expulsion.

3-In the application of the penalties and the respective measure and graduation shall cater to the

gravity of the violation of the duties that fit the lawyers pursuant to this Act,

taking as a reference the criteria set out in Article 126 of the Statute of the Order

of the Lawyers.

Article 59.

Offences practiced by solicitors

1-A infringement by any solicitor of the duties to which he / she is adstrate according to

present law implies the opening of disciplinary procedure by the Chamber of

Solicitors in the general terms, provided for in the Statute of the House of Solicitors.

2-The applicable disciplinary penalties are:

a) Fine between € 2500 and € 250000;

b) Suspension up to 2 years;

c) Suspension for more than 2 and up to 10 years;

d) Expulsion.

3-In the application of the penalties and the respective measure and graduation shall cater to the

39

gravity of the violation of the duties that fit the solicitors in the terms of the present

law, taking as a reference the criteria set out in Article 145 of the Statute of the

House of Solicitors.

Chapter VII

Final provisions

Article 60.

Amendment to Law No. 52/2003 of August 22

Articles 2, 4, and 8 of Law No. 52/2003 of August 22, amended by Law No

59/2007, of September 4, shall be replaced by the following:

" Article 2.

Terrorist organizations

1-[...].

2-Who to promote or funten group, organization or terrorist association, the

them to join or support them, notably through the provision of

information or material means, is punished with a prison sentence of 8 a to 15

years.

3-[...].

4-[...].

5-[...].

Article 4.

Terrorism

1-[...].

2-Who to practice crime of skilled theft, theft, extortion, burla

informatics and in communications, computer falsity, or falsification of

administrative document with a view to the comortment of the facts provided for in

Article 2 (1) is punishable by the penalty corresponding to the crime practiced,

aggravated by one third in its minimum and maximum limits.

40

3-[...].

Article 8.

Application in space

1-[...]:

a) [...];

b) When they constitute the crimes set out in Articles 3, 5 and 5-A,

provided that the agent is found in Portugal and cannot be

extradited or delivered in execution of detention warrant

European.

2-[...]. "

Article 61.

Addition to Law No. 52/2003 of August 22

It is added to Law No. 52 / 2003 of August 22, as amended by Law No. 59/2007, 4 of

September, Article 5-To the following:

" Article 5.

Financing of terrorism

1-Who, by any means, directly or indirectly, provide, collect

or hold funds or goods of any kind, as well as products or rights

likely to be turned into funds, with the intention of being

used or knowing that they can be used, in whole or in part, in the

planning, in the preparation or for the practice of the facts provided for in paragraph 1

of Art. 2, or practice these facts with the intention referred to in paragraph 1 of the

Article 3 or in Article 4 (1), is punished with imprisonment of 8 a to 15

years.

2-In order for an act to constitute the offence provided for in the preceding paragraph, it is not

necessary that the funds come from third parties, nor have they been

delivered to whom they are intended, or which have been effectively used

to commit the facts set out in it.

41

3-A penalty is especially mitigated or does not take place the punishment, if the agent

voluntarily abandon their activity, ward off or make a decrease

considerably the danger by it provoked or ancillary concretely in the

collection of decisive evidence for the identification or capture of others

responsible. "

Article 62.

Delegation of powers of the Attorney General of the Republic

The Attorney General of the Republic may delegate to another magistrate the skills that

they are assigned to it by this Law.

Article 63.

Information to the European Commission and to member states

The Minister responsible for the area of finance is the competent authority to transmit

and receive the information, relating to third countries, provided for in Article 11 (4), in the

n Article 28 (7) and in Article 31 (2) of Directive No 2005 /60/CE of Parliament

European and the Council of October 26, 2005.

Article 64.

Abrogation standard

1-It is repealed Law No 11/2004 of March 27.

2-All remissions made by other diplomas to the repealed standards,

consider themselves to be made, henceforth, for the present law.

Seen and approved in Council of Ministers of November 22, 2007

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs