Key Documents

Brazil Revamps AML Law

July 9, 2012

Brazil Mandates Reporting of Terrorist Financing (in Portuguese)

June 9, 2003

Brazil Targets Money Laundering, Terrorism Financing

March 3, 1998

President of Brazil Approves Bylaws of Council for Financial Control

October 8, 1998

Brazil Creates Exceptions to Financial Institutions' Duty of Confidentiality

January 10, 2001

Brazil Establishes Cash Reporting Threshold

June 11, 2003

Brazil Mandates Reporting Procedures for Cash Transfers by Non-Financial Legal Entities

November 19, 2001

Important Facts

The U.S. State Department identifies Brazil as a major money laundering jurisdiction. It is a major drug-transit country, as well as one of the ten largest economies in the world. Money laundering in Brazil is primarily related to transnational criminal activities, in particular drug trafficking, corruption, organized crime, gambling and trade in various types of contraband. Illicit networks in the Tri-Border Area which Brazil shares with Paraguay and Argentina provide financial support to Hizballah, a U.S. Department of State-designated Foreign Terrorist Organization and a U.S. Department of the Treasury Specially Designated Global Terrorist. Brazil is also one of the world’s largest drug consumer countries. Public corruption is law enforcement’s primary money laundering priority, followed by narcotics trafficking. Money laundering methods include the use of banks, real estate, and financial asset markets; remittance networks; shell companies; phantom accounts; illegal gaming; informal financial networks; and the sale of cars, cattle, racehorses, artwork, and other luxury goods. In addition, criminals use foreign tax havens to launder illicit gains. Drug trafficking organizations are tied to black market money exchange operators. In large urban areas, laundering techniques often involve foreign bank accounts, shell companies and financial assets. In contrast, in rural areas, the use of promissory notes and factoring operations are more common. Brazil maintains comprehensive know your customer and suspicious transaction report regulations.

-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical	Effectiveness
Compliant : 3	High :
Largely Compliant : 21	Substantial :
Partially Compliant : 16	Moderate :
Non-Compliant : 7	Low :

BASEL i

Rank : 78/141

Score : 5.02/10

TRANSPARENCY INTERNATIONAL i

Rank : 106/180

Score : 35/100

Tax Justice Network i

Rank : 73/133

Score : 52/100

Brazil

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