The SPA/MF Ordinance No. 1,143, published last Friday (12) by the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance, represents an excellent move towards the increasing professionalization of the iGaming industry in Brazil. The ordinance introduces AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing) regulations, reflecting guidelines already established in the financial market and bringing new players into a robust ecosystem for preventing illicit acts in the sector.
Betting platforms that will operate regularly in Brazil will be required to have clear policies to combat illicit practices, including defining roles and responsibilities, promoting a culture of compliance and integrity, and monitoring and analyzing operations to identify signs of money laundering and other crimes. They must also carry out the identification, qualification, and risk classification of bettors.
The ordinance highlights the importance of transaction monitoring and mandates the reporting of suspicious transactions to the Financial Activities Control Council (Coaf). Betting operators will also be required to submit annual reports to the Secretariat of Prizes and Bets, detailing the best practices adopted in the previous year and the policies implemented to meet the provisions of the ordinance.
Indeed, the regulation brings with it the implementation of an effective anti-money laundering policy, an initiative that involves several agencies and included the participation of the Central Bank of Brazil and Coaf.
In this scenario, we at PayBrokers, as a payment institution authorized by Bacen, for example, can effectively help operators adapt to and comply with this new regulation. After all, we already comply with many of the obligations set forth in the new ordinance, as a result of the Central Bank’s regulations (Circular 3978, for instance).
It is very beneficial, both for PayBrokers and for the industry as a whole, that the ordinance provides clear AML rules for operators, fostering a regulatory ecosystem for preventing money laundering. Operators and payment institutions will work in coordination daily to comply with these rules.
In this context, the logic is simple. The more players in the process are subject to these rules, the better it is for the industry. While SPA is tasked with oversight, the operator and financial institution must comply with the rules, Bacen oversees the payment institution, and Coaf receives the communication for investigation. A solid and effective ecosystem for preventing money laundering is created.
All agents must contribute. Therefore, we see the new ordinance as very beneficial, with rules aimed at maintaining a sustainable, real market free from the contamination of practices considered criminal offenses.
In this regard, we at PayBrokers also aim to fulfill our role of regulatory compliance and have even trained to help operators comply with the new regulations, including AML/CTF policies.
As we are already in this specialized market, we have considerable know-how, for example, in identifying suspicious transactions in the betting market, which has distinct peculiarities compared to other sectors.
The financial movement of the iGaming industry is very specific, and for this reason, we aim to assist in this process, supporting the operator with the intelligence behind transaction analysis.
We are available to share this know-how with operators and contribute to combating money laundering. Cooperation should be in this direction—sharing know-how with operators while working together.
Ricardo Feijó
Chief Legal Operations (CLO) at PayBrokers, a leading company in financial transactions in the iGaming and lottery segment in the Brazilian market
