The Financial Action Task Force (FATF) has delivered its assessment, highlighting the need for significant improvements in Brazil's efforts to combat the financing of terrorism. In addition to these concerns, the international watchdog has stressed the importance of bolstering cooperation and coordination among various authorities, as well as improving the prosecution of money laundering cases within the country.
Brazil, a prominent economic force in Latin America, is also advised to address deficiencies in the supervision of its non-financial sector. Currently, sectors like legal services and company service providers remain unregulated in terms of Anti-Money Laundering (AML), Counter-Terrorism Financing (CFT), and Counter Proliferation Financing (CPF) measures.
Furthermore, the FATF evaluation has revealed that Brazil should place a stronger emphasis on the recovery of assets associated with criminal and terrorist activities. The organization found that, except for assets related to corruption, Brazil's record of asset confiscation does not align adequately with the risks the country faces from crimes such as drug trafficking, environmental offenses, and activities of criminal organizations.
The assessment report states, "Brazil has improved its AML/CFT/CPF regime since its last assessment in 2010 and is achieving some positive results. Brazil demonstrated strong international cooperation, risk assessment, and policy coordination."
Nevertheless, the report underscores the need for Brazil to address the regulatory gaps in its non-financial sector, stressing the importance of subjecting lawyers and company service providers to AML/CFT/CPF regulations.
The FATF's evaluation further emphasizes that Brazil should prioritize asset recovery efforts, aligning them more closely with the risks posed by criminal activities and terrorism financing, a step that could have a profound impact on combating crimes such as drug trafficking, environmental violations, and the activities of criminal organizations.
By fLEXI tEAM