1. What Law 83/2017 is and why it matters to real estate agents
Law no. 83/2017, of 18 August, transposes into Portuguese law Directive (EU) 2015/849 — the 4th Anti-Money Laundering Directive (AMLD4). It establishes the measures to combat money laundering and terrorist financing (AML/CFT) applicable to a broad set of obliged entities, including real estate agents.
The real estate sector has historically been used for money laundering: property purchases with illicit funds, transactions priced above or below market, the use of shell companies. The IMPIC (Instituto dos Mercados Públicos, do Imobiliário e da Construção) is the AML supervisory authority for this sector in Portugal.
2. Who is covered?
Law 83/2017 applies to every individual or legal entity licensed to carry out real estate brokerage activity in Portugal, under Law no. 15/2013 of 8 February. This includes:
- Real estate firms with an AMI licence
- Partners and executive directors
- Consultants and agents acting on behalf of the firm
3. Core obligations
3.1 Identification and due diligence (KYC)
Before entering into any business relationship or transaction, the agent must:
- Identify the customer (name, tax ID, date of birth, address) and verify with original documentation
- Identify the beneficial owner — the ultimate owner or controller of the operation (over 25% ownership)
- Assess the risk of the relationship (customer, product, geography, channel)
- Apply enhanced due diligence to high-risk customers (PEPs, high-risk jurisdictions, unusual transactions)
3.2 Record keeping
All identification documents and transaction records must be retained for a minimum of 7 years after the end of the business relationship.
3.3 Training and internal policies
Firms with employees must:
- Designate an AML compliance officer
- Implement documented internal policies and procedures
- Ensure regular training for all exposed staff
4. Reporting to IMPIC
Suspicious activity reports (SARs)
Whenever an agent suspects an operation is connected to money laundering or terrorist financing, they must report it to IMPIC before executing the operation when possible.
Reporting is done via the IMPIC online portal and must include:
- Identification of the suspect
- Description of the operation and amount
- Reason for suspicion
Tipping-off prohibition: It is illegal to inform the customer or third parties that a suspicion report has been made.
Cash transaction reports
Operations involving cash payments above €10,000 must be reported to IMPIC regardless of suspicion.
5. Penalties for non-compliance
Failure to comply with Law 83/2017 exposes the agent to:
| Infringement | Fine (legal entity) |
|---|---|
| Failure to identify customers | €2,500 – €5,000,000 |
| Failure to report a suspicious operation | €2,500 – €5,000,000 |
| Failure to keep records | €1,250 – €2,500,000 |
| No documented internal policy | €1,250 – €2,500,000 |
In addition to fines, IMPIC may apply ancillary sanctions: disqualification from professional activity, publication of the conviction, or revocation of the AMI licence.
6. How Alongside helps real estate agents
Complying with Law 83/2017 manually is slow and error-prone. Alongside is AML compliance software built specifically for the Portuguese real estate sector.
- Automated KYC: identify and verify clients in minutes with a compliant digital archive
- Automatic risk scoring by client and operation, with alerts for high-risk situations
- Streamlined reporting: automatic generation of SARs in the IMPIC format
- 7-year archive: all documentation stored, organised, and accessible during audits
- Built-in training: AML training modules for your team
7. FAQ
Does an individual agent (no employees) also have to comply?
Yes. Law 83/2017 applies to every entity holding an AMI licence, regardless of size.
When should I run enhanced due diligence?
Whenever the client is a PEP, the operation involves high-risk countries, or the transaction profile is unusual for the client.
Do I need to register with IMPIC?
Yes — there is a mandatory initial IMPIC registration covering the firm structure, the compliance officer, and the policies in place.
What happens if I fail to report a suspicious operation?
Beyond the fine (up to €5M), the agent can be held criminally liable if complicity or gross negligence is proven.
8. Next step
Compliance with Law 83/2017 is not optional — and IMPIC inspections are intensifying.
See how Alongside simplifies your AML compliance:
