Brazil Takes Steps to Combat Money Laundering and Terrorist Financing
RIO DE JANEIRO - Brazil has strengthened its efforts to combat money laundering and terrorist financing by adopting international anti-money laundering (AML) standards set by the Financial Action Task Force (FATF).
Strengthened AML Framework
Brazil has adopted a risk-based approach in its AML efforts, which entails assessing and addressing risks associated with money laundering and terrorist financing in a targeted manner. The country’s Financial Intelligence Unit (FIU), known as the Council for Financial Activities Control (COAF), plays a central role in facilitating information exchange with foreign counterparts and contributes to Brazil’s adherence to international standards.
Enhanced Transparency and Accountability
Brazil’s AML framework is designed to prevent the misuse of financial systems by identifying and reporting suspicious transactions. The country has also enacted domestic legislation, such as Law No. 9,613/1998 (the Anti-Money Laundering Law), which defines money laundering as a criminal offense and outlines obligations for financial institutions, designated non-financial businesses, and professions to implement AML programs and report suspicious transactions.
International Cooperation
Brazil actively engages in international cooperation in matters related to AML and CTF. The country cooperates with foreign jurisdictions and law enforcement agencies, exchanging information and providing assistance in cross-border investigations.
Strengthened Sanctions Regime
Brazil has also been working to strengthen its sanctions regime by complying with international sanctions imposed by the United Nations (UN) and other international organizations. This includes screening financial transactions against lists of sanctioned individuals and entities.
Compliance and Evaluation
To ensure compliance with AML standards, Brazil participates in mutual evaluations conducted by FATF and regional AML bodies. These evaluations assess the country’s compliance with FATF standards and provide recommendations for strengthening its AML regime.
Benefits to Consumers and Businesses
By taking these steps, Brazil is demonstrating its commitment to combating money laundering and terrorist financing, both domestically and internationally. The country’s efforts are expected to contribute to a safer and more transparent financial system, ultimately benefiting consumers and businesses alike.
Key Takeaways:
- Brazil has adopted international AML standards set by FATF
- Risk-based approach is used in AML efforts to assess and address risks associated with money laundering and terrorist financing
- Financial Intelligence Unit (FIU) plays a central role in facilitating information exchange with foreign counterparts
- International cooperation is key in combating money laundering and terrorist financing
- Strengthened sanctions regime ensures compliance with international sanctions
- Regular evaluations ensure compliance with AML standards