Financial Crime World

Brazil’s Efforts to Combat Money Laundering and Terrorist Financing

Overview of Anti-Money Laundering (AML) Measures in Brazil

To comply with international AML standards set by the Financial Action Task Force (FATF), Brazil has implemented a range of measures aimed at preventing money laundering and terrorist financing.

Key AML Measures Implemented by Brazil

  • Adoption of FATF Recommendations: Brazil has adopted the FATF Recommendations as the foundation for its domestic AML and counter-terrorist financing (CTF) regime.
  • Legislative Framework: Brazil has enacted domestic legislation, notably Law No. 9,613/1998 (the Anti-Money Laundering Law), to establish the legal basis for its AML regime.
  • Financial Intelligence Unit (FIU): Brazil has established a dedicated FIU known as the Council for Financial Activities Control (COAF), which is responsible for receiving, analyzing, and disseminating reports related to suspicious transactions.
  • Risk-Based Approach: Brazil has adopted a risk-based approach in its AML efforts, as recommended by FATF. This approach entails assessing and addressing risks associated with money laundering and terrorist financing in a targeted manner.

Additional Measures to Enhance AML Compliance

  • Customer Due Diligence (CDD): Brazilian AML regulations mandate customer due diligence, including the identification and verification of customer identities.
  • International Cooperation: Brazil actively engages in international cooperation in matters related to AML and CTF. It cooperates with foreign jurisdictions and law enforcement agencies, exchanging information and providing assistance in cross-border investigations.
  • Sanctions Compliance: Brazil complies with international sanctions regimes, particularly those established by the United Nations (UN) and other international organizations.

Evaluations and Assessments

Brazil participates in mutual evaluations conducted by FATF and regional AML bodies, such as the Financial Action Task Force on Money Laundering in South America (GAFILAT). These evaluations assess the country’s compliance with FATF standards and provide recommendations for strengthening its AML regime.

By implementing these measures and actively participating in international initiatives, Brazil demonstrates its commitment to combating money laundering and the financing of terrorism.