In 2018, the Federal Law n.º 13.756/2018 passed by the Brazilian Congress authorized the exploitation of betting games related to real sport events. Since then, the Ministry of Economy is still pending on redacting a specific regulation regarding the minimal standards to be met by companies operating in this market, notedly what preventive measures should be carried out during the client identification process, as well as the communication of suspect transactions carried out by its clients to the financial intelligence unit (FIU).
The absence of such regulation is an obstacle for national companies willing to operate in this market. Currently, national companies must incorporate their capital in foreign structures and adapt their operation to foreign regulators, reason why it is urgent the passing of such regulation by the Ministry of Economy.
On the draft of the regulation – that was recently made public – there is a specific chapter regarding the legal obligations any company operating in the gambling market must meet in order to prevent money laundering offences and the terrorism financing. Despite the ordinary provision of know-your-client rules and the necessity of maintaining a channel of communication with the FIU, the draft provides for the obligation of having a compliance officer based in Brazil as a requisite for obtaining the operating license.
The passing of this regulation will represent an advance towards a safer and better-prepared environment for bets the prevention of money laundering.
