🙊Brazil🇧🇷 and the impact of advanced financial technologies: restrictions introduced for e-wallets with bank-like functions

🙊Brazil🇧🇷 and the impact of advanced financial technologies: restrictions introduced for e-wallets with bank-like functions

The more advanced the technology, the broader and more diverse the market becomes — and with that expansion comes closer regulatory scrutiny. In recent weeks, Brazil, home to Latin America’s most sophisticated instant payments system, Pix, has adopted a series of measures aimed at curbing money laundering, tax evasion, and the financing of illicit activities.

▶️On September 11, the Central Bank issued a directive requiring financial institutions to block transfers to accounts flagged as suspicious. The rule applies to all transactions conducted through any payment instrument and takes effect immediately, though institutions have until October 13, 2025, to fully comply.

▶️▶️To determine whether an account is linked to fraud, institutions must rely on all available information, including both government and private databases.

▶️▶️▶️One of the main changes introduces a transfer cap of 15,000 BRL (USD 2,827) for Pix and TED transactions carried out through institutions not directly authorized by the Central Bank. The measure mainly affects smaller fintechs that process transactions via larger, authorized institutions. Regulators estimate the impact will extend to about 0.03% of accounts in the system.

👉Further details on procedures and criteria for identifying suspicious transactions are provided in BCB Resolution No. 501, which amends Resolution No. 142 of September 23, 2021, establishing anti-fraud controls in payment services.

👉Context: as of now, 142 financial institutions are in the process of securing full authorization to operate with Pix: 72are payment institutions, while 70 belong to other financial sectors. The Central Bank also expects to receive 14 additional applications this year and another 76 in 2026.

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