Currently, bookmakers are based in countries where the operation is allowed, such as the United Kingdom, New Zealand and others. Betting sites, which operate 100% online, are authorized under Law No. 13,756/2018, which classified sports betting as fixed-quota lotteries.
It is not prohibited for Brazilians to use the tools and bet online, but it is worth mentioning that these bookmakers follow legislation in accordance with their headquarters and have several compliance processes for identity validation, under penalty of local fines.
Even so, the law still leaves doubts in the understanding of the regulation of documents or measures for proof of identity and, still, it is not clear in law how these houses should deal with the Brazilian bettor or what proof measures should be adopted specifically for Brazil generating, according to specialist lawyers, a sensation of illegality that can be harmful for the market.
In view of this scenario, there are several risks, both for the bettor and for the bookmaker.
In Brazil, it was estimated that in 2022 the process of regulating sports betting sites would be finalized, however, it remains stagnant awaiting a decision from the new management. Among the obligations of bookmakers will be:
“It is important for companies to be aware of the rules of tax legislation in Brazil and also the ways of identifying users, to prevent risks from intruders and robots. Because in Brazil, the CPF is the main and most important document for confirming the identity of a user,” says Caciporé Valente, CEO of Netrin.
It is also worth mentioning that, in addition to the legislation imposed by the countries of origin of the bookmakers, there is another Brazilian law that must be observed when it comes to the Prevention of Money Laundering and Financing of Terrorism (PLD-FT).
This legislation impacts the means of payment that operate the capture of bets in Brazil, the laws specifically are: Law 9,613, of March 3, 1998, with wording updated by Law 12,683, of July 9, 2012, which provides for the crimes of laundering or hiding assets, rights and values, and on preventing the use of the financial system for the illicit activities provided for in this law.
This norm also creates the Financial Activities Control Council (Coaf), which assigns special powers to prevent and combat the commission of the aforementioned illicit acts. These laws were improved through Circular 3978, of January 23, 2020.
Basically, payment method operators in Brazil are required to create a risk classification and monitoring system for suspicious Money Laundering or Terrorism Financing operations, creating a mechanism that provides periodic reports to Coaf about this operation.
Inactive and irregular CPFs may represent up to 10% of the database
In a survey carried out by Netrin specialists, a pattern of approximately 10% of irregularity was detected in approximately 1 million records of natural persons (CPFs) consulted. The main ones are related to the registration of minors, irregular status with the Federal Revenue and deceased persons.
The case was a client that operates in Brazil and is responsible for the payment and deposit operation of the main sports betting sites, also taking care of the KYC (Know Your Customer) process, a set of compliance practices to reduce risks and ensure that deposits and withdrawals are made safely and by reputable people.
The study also accounted for an improvement of more than 70% in preventing the risk of false and fraudulent registrations with the partner platform.
“Our technologies consult, in real time, thousands of CPFs and CNPJs daily on their platforms, ensuring that their customers prevent identity fraud. The CPF query API can also be used in KYC, to validate the status of the registration at the Federal Revenue, as well as the presence of the name on international restrictive lists, in the prevention of money laundering (AML),” says Dielson Haffner, head of commercial and customer success.
CPF Query Solution for betting sites
By implementing a smart CPF query API, the bookmaker can block invalid CPF registrations and also ensure, for example, that the CPF entered belongs to that name and that date of birth, confirming the veracity of the bettor's information at the time of registration. registration.
In short, in this mechanism, the main information to be observed concerns precisely the KYC where, through the crossing of various information, it is possible to identify operations which payment transactions have greater indications of illicit practices.
Source: JornalContábil
