The turn of the year 2025 represents a highly anticipated moment for the sports betting sector, especially because only authorized houses and websites will be able to operate from January 1st, from the validity of Ordinance No. 827 of 2024 of the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance.
As a result, the paradigm shift is accompanied by a series of new rules and, in the last days of 2024, Normative Instruction SPA/MF No. 4 and Ordinances SPA/MF No. 1,143 and No. 1,212 were published, reinforcing the objective of preventing financial crimes, such as money laundering. Among the new requirements, the obligation for companies in the sector to register with Siscoaf (Financial Activities Control System) within 10 days after authorization to operate in Brazil stands out.
Although interconnected, Siscoaf and COAF (Financial Activities Control Council) have different functions. Siscoaf is the technological platform that enables communication between obligated companies and COAF. Through it, institutions register, send Suspicious Transaction Reports (ROS) and consult the history of their communications in a secure and efficient manner.
Its main functions include ensuring the standardization of information, protecting transmitted data and ensuring that companies comply with their legal obligations to prevent money laundering, for example. In short, Siscoaf serves as the official channel for reporting atypical financial activities to the control bodies responsible for the most varied regulatory tasks.
COAF, linked to the Ministry of Finance, is the body responsible for supervising and combating financial crimes in the administrative sphere. It analyzes the reports received via Siscoaf, identifies suspicious patterns of financial movement and, when necessary, shares the information with other competent authorities, such as the Public Prosecutor's Office or the Federal Police so that they can take legal and investigative measures.
In addition, COAF issues rules and guidelines on how companies in different sectors should monitor and report irregularities. In the event of non-compliance with the rules, COAF can apply administrative sanctions such as warnings, fines and even revocation or suspension of the authorization to carry out an activity, operation or functioning.
Failure to register with the Siscoaf system may lead to such administrative consequences, in addition to repercussions in the civil and criminal spheres, considering the importance of the duty to monitor and control betting operations. Among these implications, significant damage to the company's reputation and image stands out, since market distrust of the business' credibility may drive away consumers and strategic partners.
Compliance with legal obligations, such as the implementation of robust compliance policies and the use of monitoring technologies, is essential not only to ensure that operations comply with the new rules of the betting market, but also to protect the business against financial and image losses.
However, an additional challenge arises: the need to efficiently evaluate and manage information from the betting sector. Considering that there are already difficulties in analyzing data sent by other mandatory sectors, it is crucial to reflect on how to improve these processes.
Despite the clear need for monitoring and controlling betting operations, it may be necessary to rethink current approaches, seeking greater efficiency in the processing of information and a balance between regulation and agility in the market.
Fernanda Meirelles
Head of the Media &Gaming area
Fernanda Arruda
Lawyer in the area of Compliance, Investigations and Criminal
Rodrigo Sardenberg
Lawyer in the area of Compliance and Corporate Investigations
