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       Brazil's measures to combat money laundering and terrorist financing
        
 (HTM) Source
        
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       _Paris, 21 December 2023_ \- Brazil has made important strides to
       improve its system to combat money laundering and terrorist financing
       and is achieving some positive results. Brazil needs to strengthen
       cooperation and coordination between certain authorities and improve
       prosecution of money laundering.
        
       The FATF/GAFILAT mutual evaluation report of Brazil underscores the
       country's improved international cooperation, risk assessment, and
       policy coordination since the last evaluation in 2010. However, key
       challenges remain, including the need for enhanced cooperation and
       coordination among authorities, particularly the Police, Prosecution
       Authority, and Tax Office. The country also needs to show major
       improvements to prosecution of money laundering, including to tackle
       environmental crimes and laundering of proceeds.
        
       As a major economy in the world, Brazil has the largest banking and
       securities sectors in South America and as a result, is exposed to
       various cross-border threats, further aggravated by the porosity of
       the borders.
        
       The FATF/GAFILAT mutual evaluation report of Brazil highlights that
       Brazil has a deep understanding of its money laundering risks, in
       particular for money laundering risks arising from corruption,
       organized crime, tax crime, drug trafficking, and environmental
       crimes.
        
       Brazil demonstrated strong supervision of most of the financial
       sector, but the country should address the gaps in supervision of its
       non-financial sector which is currently leaving sectors such as
       lawyers completely unregulated for AML/CFT/CPF. Brazil should enhance
       the recovery of assets linked to crime and terrorism. With the
       exception of corruption-related assets, its confiscation results are
       not entirely in line with the risks the country faces.
        
       Despite initiatives like REDESIM to detect misuse of companies
       challenges remain in ensuring full transparency of business entities,
       with a largely unpopulated database for beneficial ownership
       information.
        
       Brazil's measures to combat the financing of terrorism have improved
       in recent years but there is need for significant advancements in
       implementation for the measures to be more effective. The risks of
       terrorist financing are relatively low in Brazil, however, the country
       should enhance risk understanding and mitigation from terrorist
       financing risks.
        
        
        
        
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