Companies operating in Brazil’s regulated betting sector must comply with a new directive from the Prizes and Betting Secretariat (SPA) of the Ministry of Finance. The SPA has issued a notice requiring all authorized betting operators to submit their anti-money laundering (AML) and counter-terrorist financing (CFT) policies by March 17, 2025. This move aligns with the country’s broader financial crime prevention strategies under Law No. 14,790/2023 and SPA/MF Ordinance No. 1,143/2024.

Operators failing to comply with this deadline risk potential sanctions, reinforcing the Brazilian government’s commitment to a transparent and regulated gambling industry. With the recent surge in the betting market, authorities are tightening controls to mitigate financial crime risks.

Regulatory Expectations and Compliance Requirements

The SPA’s directive applies to all fixed-odds betting operators licensed by the Ministry of Finance, as well as those operating under court rulings. The required AML/CFT policies must outline clear criteria and action plans for detecting and preventing financial crimes, including suspicious transactions and potential fraud schemes.

Failure to adhere to these requirements may lead to severe regulatory actions, including fines or license revocation. This highlights the increasing regulatory scrutiny on the betting industry, emphasizing the need for proactive compliance measures.

Key Compliance Obligations:

• Submission of a comprehensive AML/CFT policy covering money laundering and terrorist financing risks.
• Alignment with SPA/MF Ordinance No. 1,143/2024, detailing suspicious activity reporting procedures.
• Mandatory reporting to the Financial Activities Control Council (Coaf) as per Law No. 9613/1998.
• Implementation of effective internal controls and staff training programs to mitigate financial crime risks.
• Regular updates to risk assessment frameworks to account for evolving threats in the gambling sector.
• Use of advanced analytical tools to identify suspicious betting patterns and high-risk transactions.
• Strengthening customer due diligence (CDD) and know-your-customer (KYC) processes to ensure regulatory compliance.

SPA and Coaf’s Push for Enhanced Reporting Standards

As part of the compliance push, SPA held a webinar on February 12, 2025, in collaboration with Coaf, Brazil’s financial intelligence unit. The session, attended by over 190 betting operators, focused on best practices for reporting suspicious transactions.

According to Frederico Justo, SPA’s general coordinator for money laundering monitoring, the regulatory body identified inconsistencies in how different operators were filing reports with Coaf. The webinar aimed to standardize these processes and provide industry stakeholders with greater clarity on AML/CFT compliance.

“With the regulation fully operational, we have noticed that some operators have already made this communication to the Coaf, but they have done so in a very different way. We realized that there were doubts about what and how to report suspicious activity, and that is where the idea of organizing this alignment meeting arose.” — Frederico Justo, SPA

Operators were encouraged to adopt Coaf’s recommended reporting models, ensuring compliance with Articles 27 to 29 of SPA/MF Ordinance No. 1,143/2024. The discussion also addressed common challenges in identifying suspicious betting patterns and fraudulent activities.

Industry experts have pointed out that one of the key challenges in AML compliance for betting companies is ensuring that their internal monitoring systems are sophisticated enough to detect irregular activity. With online gambling platforms handling millions of transactions daily, relying on outdated detection methods may expose operators to significant regulatory risks.

Brazil’s Commitment to Strengthening AML Regulations

Since November 2024, SPA has been an active member of the National Strategy to Combat Corruption and Money Laundering (Enccla). Enccla is an inter-institutional initiative bringing together representatives from Brazil’s executive, legislative, and judicial branches to enhance financial crime prevention strategies.

SPA’s integration into Enccla is a significant step in improving transparency and regulatory oversight within the betting industry. It signals a broader governmental effort to align Brazil’s financial crime regulations with global best practices.

Brazil has faced increased international scrutiny in recent years due to concerns over illicit financial flows in various sectors, including gambling. By strengthening its AML framework and actively participating in global compliance initiatives, the country aims to bolster its reputation as a responsible and well-regulated gambling market.

The Growing Importance of Regulatory Technology (RegTech)

In response to stringent AML requirements, many betting operators are turning to regulatory technology (RegTech) solutions to streamline compliance processes. RegTech tools leverage artificial intelligence and machine learning to detect anomalies in betting patterns, automate compliance workflows, and enhance risk assessment capabilities.

Key benefits of implementing RegTech in the betting industry include:

• Faster and more accurate detection of suspicious transactions.
• Real-time monitoring and alerts for potential AML violations.
• Reduced operational costs by automating compliance reporting.
• Improved efficiency in customer due diligence and risk profiling.

As Brazil’s betting market continues to expand, the adoption of RegTech solutions is expected to play a critical role in ensuring sustainable and compliant industry growth.

Conclusion: A Critical Moment for Betting Operators

The March 17 deadline is a pivotal moment for Brazil’s regulated betting sector. Operators must ensure their AML/CFT policies meet strict regulatory expectations to avoid penalties and contribute to a safer gambling environment.

By enforcing stringent compliance measures, the Brazilian government aims to curb illicit financial activities in the growing betting industry. Betting operators should act immediately to review their policies, implement robust internal controls, and ensure alignment with regulatory standards. Failure to comply may not only lead to financial penalties but could also harm an operator’s reputation, impacting business opportunities in the long term.

To remain competitive in the evolving regulatory landscape, companies must invest in compliance infrastructure, train employees on AML best practices, and maintain proactive engagement with regulatory authorities. The enforcement of Brazil’s updated AML laws represents a turning point in the betting industry, making compliance a fundamental requirement for sustainable business operations.

Related Links

• Financial Activities Control Council (Coaf)
• Ministry of Finance – SPA
• Brazilian National Anti-Corruption Strategy
• Brazil’s Fixed-Odds Betting Regulation Updates

Other FinCrime Central News Stories about Gambling and Betting

• Entain Executives Resign Amid Money Laundering Scandal
• The UK Gambling Commission Sounds Alarm on AI and Crypto Threats to AML Compliance
• Spain’s AML Reforms: Strengthening Gambling Regulations to Combat Financial Crime

Source: Focus