Regulations :
Funchal / Madeira Airport ( LPMA / FNC ) has wind limitations for operation both approach and take-off.
Wind limitations are stated in Portuguese AIP.
According AIP when wind is out of published limits pilots are requested to readback wind information and inform ATC about itentions.
When an operation is performed with winds above limits, the operation will be reported to Portuguese Authorities (INAC = Portuguese CAA).
Experience :
Wind limitations for approach are from touchdown anemometer and sometimes with wind within limits, the difference between rosario and touchdown winds for Rwy 06 (now 05) is such that approaches are harder then with with winds out f limits.
Wind limitations are based on 2 min average wind at touchdown; for Rwy 06 (now 05) it took 5 to 6 minutes between IAF Funor and final so approach clearance was given when pilot reported intention of 'trying' the approach. If winds were above limits, and as normally happens, decision to land or not belonged to the pilot and if intending to land clarance was given.
It sometimes happened that wind was blowing 1 degree or 1 kt out of limits and ATC omitted that 1 degree/kt to allow operation without report but always knowing that difference was marginal and captain has final decision on operation.
Also wind readings at TWr were until few years ago only direct reading from anemometer i.e. they didn't have te possibility to aloow ATC to see 2 min / 10 min average ... and without this facility is difficult to judge what is and what is not 'gusting'...
INAC is waiting for a study done buy Airbus on wind limitations for operation at Funchal in order to have the wind limitations corrected, if necessary.