Title: Brazil’s Progress and Challenges in Combating Money Laundering and Terrorist Financing: An Update from FATF/GAFILAT Mutual Evaluation
Introduction
- Paris, December 21, 2023: Over the past decade, Brazil has made significant strides in enhancing its anti-money laundering (AML) and counter-terrorist financing (CTF) regulatory framework.
- Boasts the largest banking and securities sectors in South America, making progress but faces ongoing challenges.
Significant Strides in AML/CFT Regulatory Framework
- Improvements in international cooperation, risk assessment, and policy coordination since last evaluation in 2010.
Key Challenges
Inter-agency Cooperation
- Strengthen efforts to enhance coordination and cooperation among authorities.
Prosecution of Money Laundering
- More needs to be done to address prosecution gaps.
Brazil’s Money Laundering Vulnerabilities
- Major economy, porous borders, significant money laundering risks.
- Targeted risks from corruption, organized crime, tax crimes, drug trafficking, and environmental crimes.
Addressing AML/CFT/CPF Gaps
- Strengthen efforts to supervise and regulate non-financial sector, particularly lawyers and other professions.
- Enhance asset confiscation results, particularly assets linked to corruption.
- Major challenges in ensuring full transparency of ownership information.
- Initiatives like REDESIM have been implemented to address this issue.
Financing of Terrorism
- Improvements in measures, but significant advancements in implementation are needed.
- Brazil’s terrorist financing risks are relatively low.
Building on Achievements and Tackling Remaining Challenges
- Strengthen partnerships and coordination between key authorities like Police, Prosecution Authority, and Tax Office.
- Successful implementation of measures crucial for Brazil’s financial stability and security.