Brazil Expands Powers to Seize Illegal Betting Funds
Highlights
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Brazil targets illegal betting with new enforcement to boost the regulated sector.
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According to Wellington, the first objective is to financially weaken criminal organisations by cutting off their funding sources.
Finance Minister Dario Durigan presented a new decree at a press conference that allows authorities to freeze assets and proceeds from illegal betting held by financial institutions responsible for processing those funds. President Lula signed the measure on Friday.
Durigan felt that the market is very well regulated by the Secretariat of Prizes and Betting (SPA). “Now, with the ordinance that imposes joint liability on financial institutions, we will have even more means to combat the illegal market. And the new decree will impose restrictions on transactions involving clandestine bets.”
Under the decree signed by President Lula, funds traced to illegal betting and held by financial institutions can be frozen.
Brazilian financial institutions will also be accountable for transfers made by illegal betting operations. So, 48 hours would be given to banks, fintechs, and payment institutions to freeze funds that originated from illegal betting.Â
Earlier, the minister said that as part of the broader initiative, SPA has reported illegal websites to Anatel, which is set to be blocked. Furthermore, operators who use 37 fintechs for financial transactions are subject to government enquiry.Â
The proposal seeks to shut down fintech companies involved in illegal activities, suspend their operations and confiscate their assets, with any recovered funds earmarked for the National Public Security Fund.
The minister also reaffirmed the government’s zero-tolerance policy on illegal betting and its intention to strengthen oversight of financial transactions linked to illicit operations.
Wellington César Lima e Silva, Minister of Justice, considers it a major step against illegal betting.
Wellington stated that the first step is to undermine criminal organisations by choking off the flow of money that sustains them.
For more information, Refer Here!
Durigan felt that the market is very well regulated by the Secretariat of Prizes and Betting (SPA). “Now, with the ordinance that imposes joint liability on financial institutions, we will have even more means to combat the illegal market. And the new decree will impose restrictions on transactions involving clandestine bets.”
Under the decree signed by President Lula, funds traced to illegal betting and held by financial institutions can be frozen.
Brazilian financial institutions will also be accountable for transfers made by illegal betting operations. So, 48 hours would be given to banks, fintechs, and payment institutions to freeze funds that originated from illegal betting.Â
Earlier, the minister said that as part of the broader initiative, SPA has reported illegal websites to Anatel, which is set to be blocked. Furthermore, operators who use 37 fintechs for financial transactions are subject to government enquiry.Â
The proposal seeks to shut down fintech companies involved in illegal activities, suspend their operations and confiscate their assets, with any recovered funds earmarked for the National Public Security Fund.
The minister also reaffirmed the government’s zero-tolerance policy on illegal betting and its intention to strengthen oversight of financial transactions linked to illicit operations.
Wellington César Lima e Silva, Minister of Justice, considers it a major step against illegal betting.
Wellington stated that the first step is to undermine criminal organisations by choking off the flow of money that sustains them.
For more information, Refer Here!
