Brazil’s ministry of finance has issued an ordinance outlining operators’ AML responsibilities. All those wishing to continue to operate in Brazil must be compliant by the end of this year. Currently, just two groups – Superbet and Betano – have applied for a licence during a 90-day window that ends next month.
The ministry said Ordinance SPA/MF No 1,143 is based on international guidelines related to the prevention and combating of money laundering, financing of terrorism and proliferation of weapons of mass destruction.
Under the rules, betting agents must adopt policies for identifying and classifying the risk of customers who wish to register. The same also applies to all groups involved in the operation of fixed-odds betting agents, such as employees and suppliers. The ordinance also establishes criteria that require betting agents to report suspicious transactions to Brazil’s financial intelligence unit (COAF).
Operators must assess the compatibility between the bettor’s economic and financial capacity and the operations associated with him/her. They must also verify the status of any politically exposed person (PEP) and close associates in accordance with COAF rules.
Brazil’s four-stage regulatory process behind schedule?
The money laundering ordinance is the second key development in Brazil’s four-step process to finalising regulations for regulated betting and gaming.
The first, published in May, set out the technical, payment and security requirements for licensees, with anti-money laundering the second key ordinance released.
However, this process is falling behind the timeline set out by the ministry of finance in April. The technical ordinance was released in May, a month after the ministry’s April deadline.
AML rules were due for release in May, meaning licensees are awaiting technical and security standards for online gaming as well as further detail on monitoring gambling advertising. Processes for allocating industry contributions to socially responsible causes were due to be published in July, completing the regulatory process.
Brazilian licence application rush still expected
Gaming operators active in Brazil must secure a licence by the end of 2024 or face penalties from 1 January 2025, according to plans published in May.
That announcement kicked off an “adjustment period” in which gaming operators active in Brazil have until 31 December 2024 to comply with the regulatory framework for sports betting and igaming. Companies’ applications submitted within 90 days of Ordinance 827’s release will be prioritised for assessment.
Authorised operators will be granted a licence lasting five years, once a BRL30m (£4.6m/€5.4m/$5.9m) fee is paid. They are able to offer gambling via three skins.
While just two groups have so far applied, stakeholders are expecting operators to flood in once final regulations are published. Hugo Baungartner, CCO of Aposta Ganha, believes the publication of new rules will provide clarity.
“They’re making sure labs that are approved for the Brazilian market know exactly how to certify the games included in the ordinance,” Baungartner told iGB earlier this month.
Original article: https://igamingbusiness.com/legal-compliance/compliance/brazilian-betting-aml-rules/
