Legal alert no. 5

On September 23rd it was published the Bank of Portugal’s Notice n.º 8/2016 (hereinafter “Notice 8/2016”) that regulates the recording and reporting of payments transactions envisioned to offshores legal systems.

The Notice aims to realise and regulate the duties of recording and reporting to the Bank of Portugal in accordance with n.º 3 and 5, of article 118-A of the General Framework for Credit Institutions and Financial Companies (”RGICSF”) and establishes, in general, the necessary requirements to ensure the adequate knowledge of the transactions envisioned to offshores legal systems, and also in article 9-A of the Legal Framework of Payment Service and Electronic Money (“RJSPME”), as well as the conditions, mechanisms and necessary procedures for their effective compliance.

In fact, in accordance with the new wording of n.º 3, of article of 118-A of RGICSF, introduced by Decree-Law n.º 157/2014, 24th October, the institutions subject to the Bank of Portugal’s supervision, based on the institutions’ consolidated financial situation, shall proceed, independently of their institutional typology, to the registration of the transactions corresponding to payment services performed by all the entities included on the perimeter of the prudential supervision that provide and benefit natural and legal person located on any offshore legal system and should communicate it to the Bank of Portugal, under the terms set out and regulated by the Bank of Portugal.

Additionally, the new n.º 5 of article 118-A of RGICSF, also introduced by Decree-Law n.º 157/2014 of October 24th, determines that any other entities authorized to provide payment services in Portugal, that ensure also the register and reporting of transactions related to payment services that provide and benefit a natural and legal person located on an offshore legal system shall also proceed to the registration of the transactions corresponding to payment services, in accordance with n.º 3, of article of 118-A of RGICSF.

Very briefly, according to article 9 of the Notice 8/2016, the informations to be reported to the Bank of Portugal in the area of the registration duties refer to operations with a unit value equal or above € 15,000.00, or that incorporate a set of value-added operations equal or above € 15,000.00 which appear to be linked to each other.

The new obligations imposed by the Notice will enter into force on the 1st of December, 2016, and the first sending of information to the Bank of Portugal should take place until the 31st of January, 2017, referring to the specific operational reality verified in the month of December 2016 or to the transactions carried out within that month, respectively.

To access the full text of the Bank of Portugal Notice 8/2016, please click on the following hyperlink – Bank of Portugal Notice n.º 8/2016.

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