Institutions associated with the Brazilian Federation of Banks (FEBRABAN) must adopt stricter policies to identify and close accounts that are opened legitimately but are used by third parties for illicit activities, such as money laundering or betting accounts that operate without government authorization.
According to Brazil’s government news agency, the rules aim to combat both accounts, which are opened legitimately but used by third parties for illicit activities, and “cold” accounts, which are created fraudulently without the holder’s knowledge. It will also be mandatory to close online betting accounts that lack authorization from the Secretariat for Prizes and Bets (SPA) of the Ministry of Finance.
“We are creating a framework for purging toxic relationships with clients who rent or sell their accounts and use the financial system to funnel resources from scams, fraud, and cyber-attacks,” said FEBRABAN President Isaac Sidney in a statement.
The new regulations encompass several key measures aimed at enhancing the integrity of the financial system. These include strict policies and criteria for verifying fraudulent accounts. Transactions involving illegal accounts will be refused, and these accounts will be closed immediately.
Furthermore, there is now a mandatory requirement for reporting pertinent information to the Central Bank, facilitating information sharing among financial institutions. The compliance of these processes will be monitored and supervised by the FEBRABAN Self-Regulation Directorate. Additionally, there will be active participation from various bank departments, including fraud prevention, money laundering, legal, and customer service areas. In the event of non-compliance, there will be penalties ranging from immediate corrective action and warnings to exclusion from the Self-Regulation system. Banks meanwhile are now required to uphold strict internal policies dedicated to the identification and closure of suspicious accounts.
The tightening of rules comes amid an escalation of cybercrimes and suspicious financial movements in the country. According to Sidney, the banking system faces unprecedented challenges due to the explosion of scams and digital attacks.
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Institutions associated with the Brazilian Federation of Banks (FEBRABAN) must adopt stricter policies to identify and close accounts that are opened legitimately but are used by third parties for illicit activities, such as money laundering or betting accounts that operate without government authorization. According to Brazil’s government news agency, the rules aim to combat both…
The post Gambling accounts face closer scrutiny in Brazil appeared first on G3 Newswire.