Crowdfunding Platforms: Anti-Money Laundering Obligations

The Portuguese Securities Market Commission (CMVM) published yesterday a generic opinion clarifying the obligations to which Crowdfunding Service Providers (commonly known as crowdfunding platforms) in the lending and investment (equity) modalities are subject.

The opinion clarifies that crowdfunding platforms are not subject to all obligations under Law No. 83/2017 of 18 August. They are classified as “equivalent entities” — meaning they are subject to a lighter regime, limited to the duties set out in Article 144 of the law.

In practice, the regime applicable to collaborative financing entails three main obligations: (i) Identifying investors and promoters; (ii) Retaining information for 7 years; and (iii) Reporting suspicious transactions.

The opinion clarifies that crowdfunding platforms are not subject to more in-depth due diligence duties (such as ongoing transaction monitoring or detailed client risk profiling), nor to the general document retention or reporting rules that apply to traditional financial entities (banks, insurers, etc.).

In addition to Portuguese law, platforms must also comply with Article 5 of Regulation (EU) 2020/1503, which requires minimum checks on crowdfunding offer promoters — namely regarding their good repute, relevant criminal records, and connections to high-risk jurisdictions.

The most significant change is yet to come: from 10 July 2027, with the entry into application of Regulation (EU) 2024/1624 (the new European anti-money laundering and counter-terrorist financing regulation), crowdfunding platforms will become fully obliged entities — in exactly the same way as banks or insurers.

This means that the current simplified regime will cease to exist. Platforms will become subject to the full range of anti-money laundering duties, including: (i) comprehensive client risk assessment; (ii) ongoing monitoring of transactions; (iii) enhanced due diligence procedures where applicable; (iv) all reporting, record-keeping and internal control duties provided for under the harmonised European framework.

For crowdfunding platforms operating in Portugal, it is important to bear in mind that although the current regime is lighter, preparation for the new framework — which will come into force in July 2027 — should begin now.

Accordingly, platforms should commence a review of their internal procedures, invest in compliance systems, and ensure they will be ready to comply with all obligations of a fully obliged entity once the new European regulation begins to apply.

 For further information, please contact us at: rvr@ccsllegal.com

[Photo by: Ruxipen, available at unsplash.com]