The government of Brazil has announced rules for sports betting agencies to prevent money laundering. The iGF Special Correspondent Jordi Bacardi writes that this is is as the South American giant moves to further regulate the soaring iGaming sector.
Finance Ministry’s Secretaria de Prêmios e Apostas is the department that oversees betting. It published the measure, requires betting agencies to watch out for suspicious activities that point to money laundering. As alike to bulk betting on different results — and report them to COAF or Financial Activities Control Council. Brazil’s Central Bank has linked the regulations to its authority.
Failure to comply can result in penalties of up to 20 million reais or US$3.6 million. It could also lead to operating bans.
Betting agencies will have to get to know who their clients are, as well as watching whether they are betting unusually large sums of money that are beyond their means.
They must also file an annual report to the ministry on their best practices in monitoring bets.
According to lawyers representing betting companies, since its legalization last year, the measure is another step toward greater transparency and security in a sector that has quickly grown into a mega-business.
A criminal and compliance lawyer at Pimentel & Fonti Advogados, Victor Ferreira Arichiello said that the idea is welcome, because it details obligations already created in the law enacted in 2023 on the subject, further closing the gap against money laundering in a relatively new sector with little supervision.
A law signed in December legalized fixed-odds sports bets. This sets the rules for online betting agencies.
The biggest change is that they must be based in Brazil. Additionally, operators must obtain a license to operate in the country.
An estimate says that there are some 300 betting houses in Brazil. Most of these operators have registered in other countries, such as the United Kingdom, Malta, and Curaçao.
