Brazil Creates Financial Intelligence Unit to Combat Money Laundering and Terrorism
Strengthening Efforts Against Financial Crimes
In a significant move aimed at combating money laundering and terrorism, Brazilian President Jair Bolsonaro has enacted a provisional measure transforming the Financial Activities Control Board (Conselho de Controle de Atividades Financeiras, COAF) into the Financial Intelligence Unit (Unidade de Inteligência Financeira).
Responsibilities of the New Unit
The new unit will be responsible for:
- Producing and managing financial intelligence information to prevent and combat money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction
- Promoting institutional dialogue with national, foreign, and international agencies
Autonomy and Support
The Financial Intelligence Unit will have:
- Technical and operational autonomy
- Nationwide operation
- Necessary technical and administrative support provided by the Ministry of Economy and the Ministry of Justice and Public Security
A Significant Step Forward in Combating Financial Crimes
The creation of the Financial Intelligence Unit is seen as a significant step forward in Brazil’s efforts to combat financial crimes and protect its economy from illegal activities.
Enactment Under Article 62 of the Brazilian Constitution
The provisional measure was enacted under Article 62 of the Brazilian Constitution, which allows the President to adopt measures with immediate effect in cases of urgency. However, such measures must be submitted immediately to Congress for approval.
Collaboration and Cooperation
The Financial Intelligence Unit is expected to play a crucial role in Brazil’s fight against financial crimes and will work closely with other agencies to:
- Identify and prevent illegal activities
- Share intelligence and best practices
Efforts to Combat Money Laundering and Terrorism
Brazil has been increasing its efforts to combat money laundering and terrorism in recent years, with the government implementing various measures to strengthen its financial regulatory framework. The creation of the Financial Intelligence Unit is seen as an important step forward in this effort.
By establishing a dedicated unit for financial intelligence, Brazil is demonstrating its commitment to combating financial crimes and protecting its economy from illegal activities.