Brazil’s Financial Intelligence Unit Under New Management

President Lula da Silva Transfers Control of Coaf to Finance Ministry

In a move aimed at streamlining financial oversight in Brazil, President Luiz Inácio Lula da Silva has transferred the country’s financial intelligence unit, the Council for the Control of Financial Activities (Coaf), from the central bank to the finance ministry.

Key Changes

• Coaf will now operate under the supervision of the finance ministry
• Despite the change in ownership, the unit’s powers and duties remain unchanged

What is Coaf?

Coaf is responsible for receiving and analyzing reports on possible financial crimes. It does not prosecute cases itself but instead passes findings on to law enforcement agencies.

Recent Activity

In 2021 alone, Coaf received nearly 1.2 million reports of unusual activity.

Impact of the Transfer

The transfer of Coaf from the central bank to the finance ministry is expected to enhance coordination between different government agencies responsible for overseeing financial activities. This move is seen as a significant step by President Lula da Silva in his efforts to improve transparency and accountability in Brazil’s financial sector.

Quote

“This decision is part of our commitment to strengthen the fight against financial crimes and ensure that our financial system is more transparent and efficient,” said President Lula da Silva.

Conclusion

The transfer of Coaf from the central bank to the finance ministry is a significant move by the Brazilian government aimed at streamlining financial oversight in the country. With its powers and duties remaining unchanged, Coaf will continue to play a crucial role in detecting and preventing financial crimes.