Title: Brazil’s Progress in Combating Financial Crimes: Strengthening Cooperation and Prosecution

Overview from FATF Evaluation Report

• Paris, December 21, 2023: Brazil’s anti-money laundering (AML) and counter-terrorist financing (CTF) framework has seen substantial improvements over the past decade.
• Recognition of progress: FATF and GAFILAT’s recent evaluation report highlights upgrades in international cooperation, risk assessment, and policy coordination.

Areas for Improvement

Enhancing Cooperation and Coordination

• Closer collaboration needed: Police, Prosecution Authority, and Tax Office require greater coordination for effective AML/CFT efforts.
• Urgent priority for stronger prosecution: Lackluster prosecution of money laundering cases - including environmental crimes and those involving proceeds - needs addressing.

Regulation of Brazil’s Non-Financial Sector

• Under-regulation of sectors like lawyers: Oversight of the non-financial sector is essential regarding AML/CFT/CPF concerns, with laws to govern sectors like legal professionals being needed.

Recovery of Assets Tied to Crime and Terrorism

• Notable progress: Significant progress in asset recovery related to corruption; however, results need to match the magnitude of the risks encountered.

Initiatives to Detect and Prevent Financial Crimes

REDESIM: Operational System for Financial Intelligence

• Goal: Detection of misuse of companies
• Challenges: Transparency issues with business entities can limit REDESIM’s effectiveness

Combating the Financing of Terrorism

• Brazil’s efforts: Improvement in understanding and implementing measures, but stronger actions needed to make them impactful.
• Low risks: Despite low terrorist financing risks, it is crucial for Brazil to expand its understanding of these risks and act accordingly to prevent unintended safe havens.