National Anti-Money Laundering Day, celebrated on October 29 in Brazil, is a date that underscores the importance of awareness and combating this crime. The day seeks to engage society, along with public and private institutions, in preventing and combating money laundering, a crime that significantly threatens economic stability and public security.

Money Laundering Law in Brazil: Initially established by the Brazilian Law No. 9,613, this legislation was enacted on March 3, 1998. It defines money laundering as the process of concealing or disguising the illicit origin of assets, rights, or values, aiming to integrate them into the financial system in a legitimate manner.

Key Amendments and Developments in Brazil:

• Law No. 12,683/2012: This amendment introduced significant changes, such as expanding the list of predicate crimes that can lead to money laundering, including new offenses such as corruption and crimes against the financial system. It also established corporate liability for entities involved in money laundering practices.
• Law No. 13,260/2016: Introduced the criminalization of terrorism and terrorist financing, linking these activities to money laundering, thus broadening the scope of investigations and punishments.
• Law No. 13,974/2020: Amended provisions related to the anti-money laundering system, including the implementation of stricter measures for client identification and information sharing among public bodies.
• COAF Regulations: The Financial Activities Control Council (COAF) has played a crucial role in enforcing the law, creating guidelines and regulations that guide financial institutions and other sectors on how to prevent and detect suspicious activities.

These changes reflect Brazil’s ongoing effort to strengthen its fight against money laundering and enhance the effectiveness of preventive measures, aligning with international guidelines such as the Financial Action Task Force on Money Laundering (FATF) recommendations.

Brazil’s anti-money laundering (AML) legislation is one of the most comprehensive in Latin America, setting stringent criteria for monitoring and curbing illicit practices in the capital market.

In the context of capital markets, this legislation requires financial institutions and other market participants to adopt effective identification and control measures to prevent the entry of illicit capital. The Central Bank of Brazil and the CVM (Brazilian Securities and Exchange Commission) also have their own regulations, requiring the adoption of robust internal policies, the reporting of suspicious transactions to COAF, ensuring a rigorous and preventive approach against illicit activities and protection of the financial system.

The AML-CFT (Anti-Money Laundering and Counter-Terrorist Financing) guide created by the Brazilian Association of Financial and Capital Market Entity (ANBIMA) also directs the sector on best practices and sets relevant criteria for detecting suspicious activities, including KYC (Know Your Customer) procedures, Risk Classification, Continuous Monitoring, and Team Training and Awareness.

Recently, the online sports betting sector, a growing segment in Brazil, was also included in the regulations. With the increased interest in this type of operation, the Ministry of Finance now requires betting companies to adopt a series of measures to ensure compliance with the country’s AML-CFT standards. The regulation seeks not only to prevent the circulation of illicit funds but also to ensure transaction integrity, protecting the trust of Brazilian investors and consumers.

In the capital markets, anti-money laundering not only strengthens the integrity of the financial system but also protects the reputation of participating institutions. With growing regulations, compliance with AML standards becomes an essential factor for companies seeking to operate sustainably and transparently in Brazil’s financial market. Aligning with these practices and the guidelines set by self-regulatory entities contributes to a secure business environment and bolsters the credibility of the operations conducted therein.