💣 Brazil 🇧🇷: Finance Minister urges Central Bank to strengthen fintech oversight in fight against money laundering and illegal betting

💣 Brazil 🇧🇷: Finance Minister urges Central Bank to strengthen fintech oversight in fight against money laundering and illegal betting

However, the request has sparked debate, as oversight of illegal betting falls under the exclusive authority of the Secretariat of Prizes and Betting (SPA), which reports directly to the Ministry of Finance. Moreover, since 2023, the sector has been regulated by the federal government under President Luiz Inácio Lula da Silva.

🟢 Fintechs under scrutiny: during last year, after reviewing 900 participants in the #Pix instant payment system, the SPA Secretary reported 36 fintech companies showing signs of suspicious activity. The number has now increased to 37.

🟢 Regulatory framework: in 2021, the Central Bank of Brazil introduced a requirement that new payment institutions obtain prior authorization before beginning operations. In 2025, the regulator further strengthened the framework by increasing capital requirements, issuing technical standards and security guidelines, and shortening the deadline for unauthorized companies to submit license applications. These companies must now apply for authorization by May 2026.

🟢 Profile of the 37 entities under investigation: most are small fintech companies, many of which began operations before 2021, when the prior authorization regime was not yet in place.

🟢 Context: regulatory requirements for financial institutions have also been tightened. Banks are required to block suspicious transactions and immediately close mule accounts, dormant accounts used for fraudulent activities, and, more recently, accounts used to facilitate illegal betting operations.

#news #Brazil #gambling #scam

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