Money laundering in Brazil is a widespread problem. As a result, the Government of Brazil (GOB) has a comprehensive Anti Money Laundering (AML) regulatory system in place. Brazilian authorities report that the major sources of illegal proceeds are crimes against the financial system (such as fraud and embezzlement), drug trafficking, and tax evasion. Money laundering in Brazil seems to be primarily associated with domestic crime, including the smuggling of contraband goods and corruption, narcotics trafficking and organized crime, which generates funds that may be laundered through the banking system, real estate investment or financial asset markets. As a result, the Government of Brazil (GOB) has a comprehensive Anti Money Laundering (AML) regulatory regime in place. In 1998, the GOB enacted Law 9.613 criminalizing money laundering related to drug trafficking, terrorism, arms trafficking, extortion, and organized crime. Law 9.613 also created a Financial Intelligence Unit (FIU), the Conselho de Controle de Actividades Financieras (COAF), which is housed within the Ministry of Finance. The COAF consists of representatives from regulatory and law enforcement agencies, including the Central Bank and Federal Police. The COAF regulates those financial sectors not already under the jurisdiction of another supervising entity. Law 10.701 of 2003 criminalizes terrorist financing as a predicate offense for money laundering. The law also establishes crimes against foreign governments as predicate offenses, requires the Central Bank to create and maintain a registry of information on all bank account holders, and enables the Brazilian Financial Intelligence Unit (COAF) to request from all government entities financial information on any subject suspected of involvement in criminal activity. The Brazilian Central Bank’s (BACEN) AML unit (DECIF) supervises compliance for AML regulations. AML Training in Brazil Brazils Crimes of Money Laundering or Concealment of Assets, Rights, and Valuables Law and the Penal Code require financial institutions to train their employees how to recognize suspicious activity that may be tied to money laundering or terrorist financing activities. Banking in Brazil The National Monetary Council, under the direction of the Minister of Finance, is Brazil’s chief financial policy-making body the Brazilian Central Bank (BACEN). The BACEN, created by Law no. 4595 in 1964, issues currency and controls the money supply, credit, foreign capital, and other high-level financial activities. The federal government also uses other public financial institutions to implement its policies, the most important of these being the Bank of Brazil. The largest bank in the country, Bank of Brazil has numerous agencies at home and abroad and is the main source of long-term loans for farmers and exporters of manufactured goods. Brazilian financial institutions operating in the domestic market are in general diversified, dynamic, and competitive. Brazil has approximately 168 multiple and commercial banks with total assets of approximately USD 349 billion and equity of approximately USD 49 billion. Many states have their own government banks, among which the Bank of São Paulo is the most important. A lesser share of Brazil’s commercial banking is in the hands of private banks, which also provide short-term loans and savings accounts. In the 1990s federal and state governments privatized or closed several formerly state-owned banks and allowed foreign investors to control more financial institutions.
Posted on: Tue, 14 Oct 2014 13:16:06 +0000
Trending Topics
Recently Viewed Topics
© 2015