PORTUGAL: An Introduction to White-Collar Crime

According to the Bank of Portugal’s projections for December 2024, economic activity is expected to grow moderately in 2025 (growth of around 2.2%) and 2026 (growth of around 1.7%).

On 20 June 2024, the current government in office published the Anti-Corruption Agenda, aimed at combating corruption and corruption-related crimes and improving Portugal’s position in the Corruption Perception Index (according to the 2024 indicators, Portugal occupied the 34th position with 61 points out of a possible 100).

Among the various measures provided for in the Anti-Corruption Agenda (31 measures in total), we highlight:

• the regulation of lobbying through the creation of a transparency regime;
• the creation of a new regime of extended loss of assets in favour of the Portuguese state;
• increasing the severity of the ancillary penalty of prohibition from exercising public or political office;
• the creation of a “blacklist” of Portuguese state suppliers; and
• the extension of the mechanisms of plea bargaining in criminal proceedings.

Some of these measures have been reflected in bills of law, presented by different Portuguese political parties:

• Bill of Law No 43/XVI/1, presented on 8 May 2024, which addresses the “revolving door” phenomenon between political office and private sector roles, strengthening restrictions on former holders of executive political office taking up positions in private companies (fifth amendment to Law No 52/2019, of 31 July):
  • maintaining the prohibition on former executive officials exercising functions in private companies operating in sectors they directly supervised, or which, during their term, underwent privatisation, benefited from financial incentives or tax benefits of a contractual nature, or where the official directly intervened; this prohibition also applies to roles in acquiring or concessionaire entities at the time of the sale or concession of assets in which the office holder was involved (only applicable to representatives or consultants mandated by national and regional governments in the process of granting concessions or disposing of public assets), as well as to subordinate or consultancy positions in international organisations with which they had institutional relations on behalf of Portugal;
  • extending the prohibition to situations in which those services are provided indirectly through companies to which former office holders supply services;
  • increasing the current prohibition from three years to five years;
  • strengthening the sanctions regime in cases where entities or companies hire former political office holders in violation of the aforementioned prohibitions; such entities/companies are (i) obliged to return the benefits or funds granted to them as a result of the decision in which the said office holder has participated, and (ii) are prevented from entering into contracts with the state or any public entities, to benefit from any financial incentives or incentive systems, benefits or tax exemptions of a contractual nature involving public resources, as well as to access public funds; and
  • extending the prohibition from holding political or high public office to five years (currently between three and five years).

• Bill of Law No 111/XVI/1, presented on 8 May 2024, which establishes a policy of zero tolerance for tax havens, in efforts to fight tax crime and corruption. It includes:
  • a ban on transactions with countries, territories, and regions that offer significantly more favourable tax regimes;
  • the exclusion of entities domiciled in tax havens, or those with direct or indirect links to such entities, from accessing public funding or entering into contracts with the Portuguese state;
  • a requirement for companies based in Portugal, or operating within the national territory and falling within the scope of action of the Large Taxpayers Unit, to publish on the company’s website the organisational chart of collective entities; and
  • the classification of non-compliance with these rules as an administrative offence, punishable under the terms of Law No 83/2017, of 18 August, as amended, as well as a disciplinary infraction.

• Bill of Law No 179/XVI/1, presented on 12 June 2024, which regulates lobbying and creates a Transparency Register and a Legislative Footprint Mechanism, amending Organic Law No 4/2019, of 13 September, and Law No 7/93, of 1 March;

• Bill of Law No 190/XVI/1, presented on 20 June 2024, regulating lobbying and creating the Public Authorities Transparency System;

• Bill of Law No 380/XVI/1, presented on 9 December 2024, deepening the guarantees of protection for whistle-blowers, amending Law No 93/2021, of 20 December, which foresees:
  • the extension of the scope of the general framework for the protection of whistle-blowers which, in addition to covering any violation of European Union law, now includes the violation of criminal rules;
  • a broader definition of whistle-blower, including people who are not professionally connected to the reported entity; and
  • the establishment of a mechanism that protects whistle-blowers from judicial retaliation.

• Bill of Law No 418/XVI/1, presented on 10 January 2025, which grants pardons and amnesties for certain offences on the occasion of the commemoration of the 50th anniversary of the 25th of April, excluding procedures for corruption, influence peddling, money laundering, embezzlement, economic participation in business, evasion, and crimes committed while holding political or high public office, or as a judicial magistrate or Public Prosecutor, in the exercise of, or due to, their functions.

Despite the various legislative initiatives, we are facing complex and lengthy legislative processes, so we do not anticipate these processes to be concluded before the second semester of 2025.

In addition, on 12 October 2024, a new Attorney General took office, who has expressed particular concern over the slow pace of investigations into economic crimes, while advocating for the introduction of plea bargaining (an approach already established in other legal systems, namely in the Brazilian legal system) and the development of a stronger framework for recovering assets linked to criminal activity.