The Central Bank will begin monitoring individuals and companies involved in illegal gambling in Brazil.
BACEN has published Central Bank Resolution No 569, amending a previous resolution. The goal is to expand fraud risk analysis and identify financial transactions involving online gambling by unlicensed companies.
The measure was taken on the same day that the TCU highlighted the need for greater oversight of illegal betting. In its audit report, the TCU noted that black market betting now accounts for between 41% and 51% of the entire sector. This represents illegal financial transactions totalling between BRL26 billion ($5 billion) and BRL40 billion per year.
This update to the previous resolution aims to broaden the scope of BACEN’s oversight. An article addressing betting has been incorporated into the document:
Art. 1A – The data to be shared and information regarding evidence of fraud include evidence of individuals or legal entities acting as unauthorised betting operators, as referred to in the heading of Art. 24-A, item I, of Statute No. 14,790, of 29 December 2023.
Deadline
Financial institutions must implement monitoring and data-sharing measures by 30 November 2026. From 1 December, they must report transactions involving accounts that are suspected of being linked to illegal betting.
Financial institutions will be required to share information on players who place bets on illegal betting sites. Both the bettor and the companies that process the payments will be flagged by the system. To do this, financial institutions will use Fraud Marker, the same system used to report Pix scams.
Federal Court of Accounts
On 19 May, the TCU approved a report by Minister Jorge Oliveira that highlighted shortcomings in government agencies’ oversight of betting companies.
In his analysis, the minister highlighted the challenge facing the sector due to the activities of illegal operators. According to the report, there are risks of money laundering, match-fixing and tax evasion.
The document advocates for the implementation of a series of measures to improve the federal government’s efforts to combat illegal betting. Among the TCU’s recommendations, one is specifically directed at the Central Bank, which should establish procedures for halting transactions involving illegal betting.
Original article: https://igamingbusiness.com/sports-betting/brazil-central-bank-crack-down-illegal-betting/
