Financial Crime World

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Brazil’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework: A National Risk Assessment Report

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The Brazilian government has been evaluated on its performance in combating money laundering and financing terrorism through a comprehensive report. The assessment highlights six key pillars that make up the country’s AML/CFT framework: National Cooperation, International Cooperation, Financial Intelligence, Investigation and Indictment Capacity, Trial and Conviction Capacity, and Assets Forfeiture and Recovery.

Pillar 1: National Cooperation


  • Score: 0.8 (very high)
  • Strengths:
    • Institutional articulation through the National Strategy for Corruption and Money Laundering Combat (ENCCLA)
    • Public policies by the Ministry of Justice and Public Security (MJSP)
  • Opportunities for improvement:
    • Structuring an inter-institutional public policy on terrorism financing
    • Increasing control mechanisms on Non-Profit Organizations

Pillar 2: International Cooperation


  • Score: 0.84 (very high)
  • Strengths:
    • Solid legal foundation
    • Institutional force and powers of the central authority
    • Availability of investigative and confidentiality techniques
  • Opportunities for improvement:
    • Statistics on international cooperation performance
    • Effectiveness of information exchange

Pillar 3: Financial Intelligence


  • Score: 0.88 (very high)
  • Strengths:
    • Capability in treating information
    • Safety mechanisms
    • Dissemination of information and reply to requests for information
  • Opportunity for improvement:
    • Quality of the information received by Coaf (Financial Intelligence Unit), especially in sectors without regulation

Pillar 4: Investigation and Indictment Capacity


  • Score: 0.74 (high)
  • Strengths:
    • Information gathering among national bodies
    • Investigation and prosecution levels
    • Access to FIU information
  • Opportunities for improvement:
    • Statistics on investigation and indictment capacity
    • Difficulty obtaining and updating information related to different stages of the procedure

Pillar 5: Trial and Conviction Capacity


  • Score: 0.67 (medium-high)
  • Strengths:
    • Specification and compliance with Judicial Branch National Goals
    • Progressive increase of non-criminal procedures
  • Opportunities for improvement:
    • Statistics on trial and conviction capacity
    • Adjusting parameters used to gather statistics according to FATF requirements

Pillar 6: Assets Forfeiture and Recovery


  • Score: 0.71 (high)
  • Strengths:
    • Capacity to freeze assets during investigation and criminal prosecution
    • Effectiveness of this mechanism
  • Opportunities for improvement:
    • Statistics related to assets forfeiture and recovery

If you would like a more detailed analysis or have specific questions regarding the report’s findings, please let me know.