Financial Crime World

Money Laundering Crackdown in Brazil: A Look at the Enforcing Agencies and the Legal Framework

This article explores the key government bodies involved in enforcing money laundering laws in Brazil and the legislative framework that guides their actions.

Administrative Level Agencies

At the administrative level, the Financial Activities Control Council (COAF) plays a crucial role in receiving and processing data from private entities regarding suspicious financial transactions. Key responsibilities of COAF include:

  • Analyzing data
  • Reporting results to investigative and prosecuting authorities
  • Enforcing regulations related to Law 9,613/98

Investigative Agencies

Investigations into money laundering cases are the responsibility of:

  • Federal and state police
  • Public Prosecutor’s Office in exceptional cases

Once the investigative phase is completed, federal and state prosecutors lead prosecution before courts.

Judicial Level - Application of Penalties

Judges oversee money laundering cases and apply penalties in both federal and state jurisdictions. Since the early 2000s, Brazil has seen specialist courts dealing with money laundering and financial crimes.

Legislative Framework

Brazil’s federal system allows the National Congress to legislate on criminal and procedural law, including money laundering. Enforcing regulations related to Law 9,613/98 falls under the purview of various federal authorities such as COAF and the Central Bank.

Jurisdictional Criteria

Determining the correct authority for money laundering cases depends on various jurisdictional criteria set by:

  • Law 9,613/98
  • The Federal Constitution
  • The Criminal Procedure Code

Prohibited Offenses

No monetary threshold exists for money laundering cases. Predicate offenses can include any criminal offense except for mere civil or administrative violations.

Defenses & Penalties

There are no codified defenses to money laundering charges, but the Federal Constitution guarantees the right to an ample defense. A conviction for money laundering can result in imprisonment, fines, lost assets, and damage indemnification.

Alternative Resolution Methods

Brazilian justice system offers alternative resolution methods for money laundering cases, such as plea agreements and non-prosecution agreements.

Asset Forfeiture & Recovery

Brazilian money laundering laws include asset freezing, forfeiture, disgorgement, and victim compensation. Seized assets will be lost in favor of the federal government, except for the victim’s or third party’s rights.

Limitation Periods & International Cooperation

The limitation periods for money laundering prosecutions are calculated based on the maximum penalty for the offense (10 years). Brazilian money laundering laws apply to all crimes committed within its jurisdiction and allow for international cooperation in asset recovery and enforcement.

Conclusion

This article provides an overview of the government bodies involved in enforcing money laundering laws in Brazil and the legislative framework surrounding these efforts. It’s essential to remain informed about the latest developments in anti-money laundering regulations and best practices to maintain a strong commitment to combating financial crimes.

Key Points

  • Multi-agency effort involving entities at the administrative and judicial levels
  • Administrative: COAF receives and processes data from private entities
  • Investigative: Federal and state police, Public Prosecutor’s Office
  • Judicial: Judges oversee cases, apply penalties
  • Federal Law 9,613/98 applies, federal and state prosecutors involved
  • National Congress legislates on criminal and procedural law
  • Various authorities enforce regulations related to Law 9,613/98
  • No concurrent proceedings of the same case in multiple jurisdictions
  • Jurisdictional criteria set by Law 9,613/98, The Federal Constitution, the Criminal Procedure Code
  • Money laundering involves concealing illegal goods or assets
  • No monetary threshold for money laundering cases
  • Predicate offenses include any criminal offense, except civil or administrative violations
  • Defenses: absence of elements, failure to conceal assets, profits from the predicate offense
  • Penalties: imprisonment, fines, lost assets, damage indemnification
  • Alternative resolution methods: plea agreements, non-prosecution agreements
  • Asset forfeiture, freezing, disgorgement, and victim compensation
  • Limitation periods: 16 years, calculated based on the maximum penalty for the offense
  • Applies to all crimes committed within Brazilian jurisdiction
  • Assets derived from money laundering crimes committed abroad can be targeted

Learn More

  • Law 9.613/98
  • Brazilian Penal Code
  • The Federal Constitution
  • COAF Website