The SPA issued the call for submission of AML and CTF policies to the operators it has licensed in Brazil, as well as those granted authorisation by court orders.
After eight companies received definitive licences on Tuesday (18 February), 43 operators now have full authorisation to operate in Brazil, with a further seven given permission by the court system to legally offer bets.
Operators’ AML and CTF policies must go in-depth on their actions for different scenarios, following the regulations set out in the betting law (Law No 14,790/2023) and Normative Ordinance No 1,143.
The laws call for effective action to prevent financial crimes relating to betting, with failure to do so potentially resulting in sanctions.
What are the regulations in Brazil on AML?
Normative Ordinance No 1,143, published on 11 July 2024, provided for policies, procedures and internal controls to prevent money laundering, terrorist financing and the proliferation of weapons of mass destruction.
The ordinance requires betting agents to implement policies for identifying and assessing the risk levels of customers seeking to register.
These requirements extend to all entities involved in the operation of fixed-odds betting, including employees and suppliers. Additionally, the ordinance sets out criteria mandating that betting companies report any suspicious transactions to Brazil’s financial intelligence unit (COAF).
Operators must evaluate whether a bettor’s financial and economic capacity aligns with their betting activities. They are also required to check for any politically exposed persons (PEPs) and their close associates, following COAF guidelines.
On 12 February, the SPA hosted a webinar clarifying best practice for reporting suspicious activity to the COAF.
Such communications must include an indication of why the activity was analysed, as well as an explanation of the evidence that points to the presence of money laundering or terrorism financing.
In November 2024, the SPA joined the National Strategy to Combat Corruption and Money Laundering (ENNCLA) to boost anti-corruption efforts in Brazil.
The body has been involved in 90 public laws being established in the executive branch of Brazil’s federal government, as well as the judiciary and legislative levels and the public ministry.
Hearing on betting regulatory agenda gets under way
Today (21 February), the SPA’s public hearing to inform its 2025-2026 regulatory agenda gets under way.
Earlier this month, the SPA held a press conference establishing the timeline for its new agenda. They invited players, operators and suppliers to contribute to the public consultation.
The public hearing forms part of the SPA’s consultation process, which will close on 27 March. The SPA’s 2025-2026 regulatory agenda will then be published on 4 April.
Original article: https://igamingbusiness.com/legal-compliance/regulation/brazil-betting-operators-aml-policies/
