Terrorist financing

The fight against terrorist financing gained increased relevance after the terrorist attacks of 11 September 2001, in the United States.

It became more evident to the international community that it was necessary to adopt legislative measures, which in articulation with the legal framework for the prevention of money laundering, would make it easier to detect, prevent and suppress terrorist financing, reducing the possibility of access to the international financial system by the persons who commit terrorist acts and their sponsors.

These measures include, inter alia, the freezing and seizure of the assets belonging to terrorists, the duty to report transactions suspicious of having any type of connection with terrorist activities, the strengthening of the duties to prevent money laundering (in particular, the identification duty) within the scope of operations involving the transfer of funds and, naturally, criminalising the financing of terrorist acts.

In accordance with Portuguese law, terrorist financing is considered a criminal offence, by virtue of the provisions laid down in Article 5-A of Law No 52/2003 of 22 August (as amended by Article 62 of Law No 25/2008 of 25 June).

The United Nations and the European Union have adopted international regulatory rules(1) which provide for the financial sanctions and restrictions to be applicable to infringements of the principles and rules of International Law aimed at maintaining peace and security. These measures are applicable to countries, organisations and persons.

In this context, lists are periodically endorsed containing the names of persons and entities linked to terrorist groups, associations or organisations, whose funds and other financial assets or economic resources, including the funds derived from property directly or indirectly owned or controlled  by such persons, shall be frozen.

Thus, at the national level, the freezing of funds and financial assets is compulsory, in fulfilment of the sanctions imposed by the Regulations of the European Union and by the United Nations Security Council. Non-fulfilment of such duty shall be punishable under the terms of Law No 11/2002 of 16 February.

The consolidated lists of persons, groups or entities subject to financial sanctions may be consulted on the United Nations and European Union websites.
(1) United Nations Resolutions – e.g. Resolution 1267 (1999) and Resolution 1373 (2001) – and Community Regulations – e.g. Council Regulation (EC) No 2580/2001 of 27 December 2001.