Brazil

New Documents

Brazil’s Federal Police announced that it seized R$230 million from a drug trafficking group with operations in Brazil and Paraguay. Police also seized 42 properties, two farms, 75 cars, and at least one airplane.

The Governor of Japan’s Financial Services Agency, Endo Toshihide and the Governor of Banco Central de Brasil, Roberto de Oliveira Campos Neto, exchanged letters agreeing to cooperate in their supervisory efforts of financial institutions.

Enforcement Actions

0 Items Found


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