Brazil betting operators must submit AML policies by 17 March
The Secretariat of Prizes and Bets (SPA) in Brazil has issued a crucial directive to all licensed betting companies, requiring them to submit their comprehensive anti-money laundering (AML) and counter-terrorism financing (CTF) policies by March 17. This mandate is poised to significantly enhance regulatory compliance within the burgeoning gambling sector.
The SPA’s announcement underscores its commitment to ensuring that both licensed operators and those authorized via court orders adhere to robust AML and CTF frameworks. Following the recent granting of definitive licenses to eight additional companies on February 18, a total of 43 operators are now officially authorized to conduct betting activities in Brazil. Furthermore, an additional seven operators have received court permissions to legally engage in this sector.
To comply with regulatory requirements, operators are expected to develop in-depth AML and CTF policies that clearly outline their procedures for mitigating risks associated with various scenarios. These measures are anchored in the legal framework established by Law No. 14,790/2023 and Normative Ordinance No. 1,143, which collectively emphasize the necessity for proactive financial crime prevention measures.
Understanding Brazil’s AML Regulations
Normative Ordinance No. 1,143, published on July 11, 2024, lays the foundation for establishing effective policies, procedures, and internal controls aimed at combating money laundering, financing of terrorism, and the proliferation of weapons of mass destruction within the gambling industry. This ordinance mandates that betting operators develop comprehensive risk assessment policies to identify and evaluate the risk levels of potential customers during the registration process.
These regulatory requirements are applicable to all entities engaged in fixed-odds betting, encompassing employees, suppliers, and associated stakeholders. Significantly, the ordinance obligates betting companies to report any suspicious transactions to Brazil’s financial intelligence unit, COAF (Conselho de Controle de Atividades Financeiras).
Operators are required to conduct due diligence to ensure that a bettor’s economic capacity aligns with their betting patterns and to identify any politically exposed persons (PEPs) and their close associates, per COAF guidelines. This level of scrutiny is vital in maintaining the integrity of the betting environment.
On February 12, the SPA hosted a webinar designed to clarify best practices for reporting suspicious activities to COAF. Participants were instructed on the requisite details that must be included in reports, such as the rationale behind the analysis and the evidential basis supporting the suspicion of money laundering or terrorist financing.
In a significant development in November 2024, the SPA aligned itself with the National Strategy to Combat Corruption and Money Laundering (ENNCLA), enhancing Brazil’s anti-corruption efforts. This partnership has been instrumental in supporting the establishment of 90 public laws at various levels of government, including the executive branch, judiciary, legislative body, and public ministry.
Launching the Regulatory Agenda: A Public Hearing
On February 21, the SPA commenced a public hearing aimed at shaping its regulatory agenda for 2025-2026. Earlier in the month, the SPA convened a press conference to outline the timeline for this new agenda and encouraged input from stakeholders, including players, operators, and suppliers, as part of its public consultation process.
This public hearing is a critical component of the SPA’s engagement strategy, set to conclude on March 27. Following this consultation, the SPA is expected to publish its comprehensive 2025-2026 regulatory agenda on April 4, reflecting insights and recommendations gathered during this period.
In summary, the SPA’s ongoing efforts to enhance compliance through rigorous AML and CTF requirements are pivotal in fostering a secure and transparent betting environment in Brazil. As the industry continues to evolve, adherence to these regulations will not only safeguard the integrity of operators but also protect consumers and contribute to a sustainable gambling ecosystem.
