PORTUGAL Law and Practice Contributed by: Bárbara Marinho e Pinto, João Diogo Melo, Lua Mota Santos and Amanda Bueno Almeida, Rogério Alves & Associados
procedural support mechanisms. Although EU law allows member states to establish incentive schemes for internal whistle-blowers in areas such as auditing, there does not appear to be, under Portuguese law, a generalised regime providing for financial rewards or bonuses. Finally, anonymous reporting is expressly permitted. Mechanisms for anonymous reporting exist both inter - nally within organisations – under Law No 93/2021, AML frameworks and regulatory notices issued by Bank of Portugal – and externally, through competent authorities such as the Portuguese Securities Mar - ket Commission, Bank of Portugal and other sectoral regulators, in accordance with the applicable legal regimes.
punishable with no more than five years’ imprison - ment. In tax and social security offences, the applicable legal framework provides for objective conditions of criminal liability and opportunities for regularisation such as payment following notification, which may prevent prosecution or lead to the extinction of crimi - nal liability, in addition to allowing for waiver or special mitigation of penalties. In offences such as corruption, embezzlement and money laundering, provisions of a “reward-based” nature exist, whereby decisive co- operation with the authorities and the restitution of illicit advantages may result in a waiver of penalty or significant mitigation. Overall, the Public Prosecutor enjoys a consider - able margin of discretion within the bounds of the law, including the choice between bringing charges, proposing provisional suspension, discontinuing pro - ceedings with a waiver of penalty or resorting to sim - plified procedural forms. The judge, in turn, exercises control over legality and the fulfilment of the relevant requirements, including the validation of provisional suspensions, discontinuances based on waiver of penalty, summary penalty agreements and the deter - mination of the appropriate sentence. Although there is no broad system of plea bargaining, the combination of mechanisms, such as regularisa - tion, co-operation, provisional suspension and waiver or mitigation of penalties, effectively enables negoti - ated solutions and significant reductions in sanctions The Portuguese sentencing system for economic crimes distinguishes between individuals and legal entities, combining principal penalties with ancillary measures and confiscation regimes. For individuals, penalties are primarily based on imprisonment and daily fines adjusted to their financial circumstances. Legal entities are criminally liable for acts committed in their interest and may face substantial fines, pro - hibition of activities, exclusion from public subsidies or procurement, and, in extreme cases, judicial dis - solution. within the Portuguese legal system. 6.2 Sanctions and Sentencing
6. Resolutions, Sanctions and Remedies
6.1 Prosecution and Resolution Mechanisms In Portugal, the scope for procedural flexibility in eco - nomic and financial crime is structured within a legal framework that balances the principle of legality with mechanisms of procedural consensus and efficiency. As regards the decision between discontinuance and indictment, the Public Prosecutor is under a duty to bring charges where sufficient evidence exists. Con - versely, proceedings may be discontinued where such evidence is lacking, where the offence has been extin - guished – such as by limitation or tax regularisation – or where the legal requirements for a waiver of penalty are met, subject to judicial approval. A central instrument of consensual resolution is the provisional suspension of proceedings ( suspensão provisória do processo ), whereby the Public Prosecu - tor proposes the suspension subject to the defend - ant’s acceptance of certain obligations – such as payments or regularisation measures – with the agree - ment of both the injured party and the judge. Upon full compliance with such obligations, the proceedings are ultimately discontinued. However, recourse to this mechanism is only permissible at the early stages of criminal proceedings and only in respect of offences
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