Financial entities operating in Portugal under the regime of free provision of services will now have to send information to Banco de Portugal on the operations carried out, the bank regulator and supervisor informed this Thursday.
Financial entities headquartered in a European Union country may operate in any other country under the freedom to provide services, and the banking supervisor of the countries in which they operate may request information about their activities.
Banco de Portugal published today an instruction that requires that these entities report information to you every year, which must be done by February 28 of each year for the period between January 1 and December 31 of the previous year.
According to the instruction, the objective of Banco de Portugal is to evaluate information it considers relevant to its function of preventing money laundering and terrorist financing.
The report includes operations carried out in Portugal (segmented by services), the total number of operations carried out and the aggregate amount in euros (operations with Portugal either as origin or destination), the main 10 jurisdictions of destination and origin of operations, the total number of communications made regarding suspicious operations carried out, among other information.
With the European integration of retail banking markets, which the European Union (EU) has promoted in recent years with new legislation, banks or other financial institutions authorized in one European Union country can provide retail banking services in another Member State through the establishment of a branch or through the freedom to provide services.
According to the Banco de Portugal portal, there are hundreds of institutions registered in Portugal as EU credit institutions under the freedom to provide services and electronic money entities based in the EU under the freedom to provide services, as in the case of N26 digital banks (based in Germany), Openbank (based in Spain, belonging to the Santander group) or Revolut.