Brazil’s Approach to Compliance with International Anti-Money Laundering Standards
Key Aspects of Brazil’s AML Regime
Brazil has taken significant steps to comply with the Financial Action Task Force (FATF) standards, which are widely recognized as the international benchmark for anti-money laundering (AML) and counter-terrorist financing (CTF). The following key aspects outline Brazil’s approach to achieving compliance:
1. Adoption of FATF Recommendations
Brazil has adopted the FATF Recommendations as the foundation for its domestic AML and CTF regime, ensuring alignment with international best practices.
2. Legislative Framework
Brazil has enacted domestic legislation, notably Law No. 9,613/1998 (the Anti-Money Laundering Law), to establish the legal basis for its AML regime, providing a clear framework for financial institutions to operate within.
3. Financial Intelligence Unit (FIU)
Brazil’s Council for Financial Activities Control (COAF) serves as the dedicated FIU, responsible for:
- Receiving and analyzing reports related to suspicious transactions
- Disseminating information to relevant authorities
4. Risk-Based Approach
Brazil has adopted a risk-based approach in its AML efforts, as recommended by FATF. This involves assessing and managing risks associated with financial transactions, institutions, and customers.
5. Customer Due Diligence (CDD)
Brazilian AML regulations require customer due diligence, including the identification and verification of customer identities to prevent money laundering and terrorist financing.
6. International Cooperation
Brazil actively engages in international cooperation in matters related to AML and CTF, ensuring a collaborative effort to combat these threats globally.
7. Sanctions Compliance
Brazil complies with international sanctions regimes, particularly those established by the United Nations (UN) and other international organizations, to prevent the use of financial systems for illicit purposes.
8. Assessments and Evaluations
Brazil participates in mutual evaluations conducted by FATF and regional AML bodies, such as the Financial Action Task Force on Money Laundering in South America (GAFILAT), to ensure continuous improvement and compliance with international standards.