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Brazil Strengthens Battle Against Money Laundering, Crypto Exchanges To Furnish Monthly Reports

As the Brazilian government intensifies its battle against money laundering and corruption, the Department of Federal Revenue announced that crypto exchanges will have to furnish monthly reports, going forward. The government said that by instituting tighter reporting rules on the finance industry, it is cracking down on money laundering activities. In recent years, the country has strengthened its laws and all Brazilian banks have been instructed to report any kind of suspicious activities.

Now that Brazilians have recently elected Jair Bolsonaro as the President, money laundering and corruption is a matter of concern, considering Bolsonaro’s pledge as a populist to end corruption. The tax regulator stated that it seeks to verify tax compliance as well as improve the fight against corruption and money laundering. The agency also intends to increase the perception of risk in taxpayers who intend to avoid taxes.

The Brazilian tax regulator, the Department of Federal Revenue cited examples of South Korea and Australia and announced in a document that they will need monthly reports from crypto exchanges from now on. The document also highlights the significant increase in cryptocurrency trading in the country. The annual Bitcoin trading volume has seen a jump from 44.8 million BRL in 2014, to 113 million BRL in 2015. The volumes just got larger in 2016 and 2017 respectively, as reported on NewsBTC.

The first anti-money laundering law was passed by Brazil in 1998. Over the last couple of years, the law has been updated thereby widening the number of activities that banks need to report from 43 to 106. As an outcome, the Council for Financial Activities Control (COAF) produced 5,662 case reports in 2016, compared to 1,149 in 2010.

As the government tightens the noose around Brazil’s crypto exchanges, the central bank of the country also performed 200 audits in the last three years. These audits were carried out to determine if the local banks are taking enough steps to prevent money laundering. The central bank’s national monetary council had issued instructions to the local financial institutions to implement new mandatory compliance guidelines by the end of 2017, as reported on LatinFinance.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Jesmine Rahman holds 15+ years of professional writing experience of working with reputed Indian dailies like the Times of India and the Indian Express. She also holds a rich experience of working as a Senior Technical Content Specialist with a reputed IT company. for 10 years. She writes crypto news on OWLT Market.

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