Brazil’s Financial Intelligence Unit Undergoes Major Shake-Up: COAF Retains Name Amidst Reorganization Efforts
Background
In August, Brazil’s financial intelligence unit, the Council for Financial Activities Control (COAF), faced a potential name change to the Financial Intelligence Unit (Unidade de Inteligência Financeira). However, following a provisional decree issued by President Jair Bolsonaro, COAF has retained its original name.
The Change
The decision was made after the National Congress of Brazil intervened and amended the decree. This move reflects a shift in strategy for Brazil’s financial intelligence efforts, aiming to enhance coordination between different government agencies.
About COAF
Established in 1998 under the jurisdiction of the Ministry of Finance, COAF is responsible for regulating and monitoring financial transactions linked to money laundering and terrorist financing. The unit analyzes information on suspicious financial activities and disseminates its findings to competent authorities.
Internal Rules and Regulations
COAF’s internal rules and regulations were defined through a decree and administrative rule enacted between October and December 1998. The organization operates under the supervision of the Central Bank of Brazil, which has been given greater control over COAF following recent changes.
Retaining the Name COAF
Brazil’s decision to retain the name COAF is seen as a vote of confidence in the institution’s effectiveness in combating financial crimes. This move also underscores the country’s commitment to maintaining international cooperation on anti-money laundering efforts.
Expanded Mandate
As part of its expanded mandate, COAF will work closely with other government agencies and foreign counterparts to share intelligence and best practices in preventing and investigating financial fraud. The unit’s enhanced capabilities are expected to strengthen Brazil’s position as a leader in Latin America’s fight against money laundering and terrorist financing.
Key Points:
- COAF retains its original name despite initial plans for a name change.
- The reorganization aims to enhance coordination between government agencies.
- COAF was established in 1998 under the Ministry of Finance, tasked with regulating financial transactions linked to money laundering and terrorist financing.
- The unit operates under the supervision of the Central Bank of Brazil.
- COAF will work closely with other government agencies and foreign counterparts to share intelligence and best practices in preventing and investigating financial fraud.