The Possible Amendments to the Brazilian Law Against Money Laundering

IMPORTANT: The full content of this page is available to premium users only.

Sunday, June 1, 2003
Jorge Nemr
It is estimated that Brazil incurs a yearly loss of approximately U.S. $3.5 billion on account of money laundering. In order to bring up to date the fight against this type of crime in Brazil, the Mixed Commission of Money Laundering presented a number of suggestions. Some of them do not need the approval of the National Congress; however, others will be subject to voting, as they imply amendments to Law No. 9,613/98, which deals with the matter. Since the enactment of the Law in march 1998, Brazil had only one case where the persons involved in crimes of money laundering were sentenced and a network with branches in the USA, the Caribbean, and Europe was dismantled. However, the main amendment supported is the inclusion of new legal entities, which activities represent considerable risks of participation in schemes of money laundering, such as, companies of transport of values, nonprofit entities, non-governmental organizations (NGOs) or companies whose activities allow access to information considered relevant in the work of prevention of and fight against money laundering, such as independent audit companies. The report also suggests that the COAF-Council of Financial Activities (the Brazilian FIU) be granted more competence, is required by the dynamism of the procedures of money laundering. Finally, the Commission expressly recommends increasing the number of international conventions and treaties of judicial cooperation, as well as the creation of a new Commission (permanent) to be indicated by the Federal Justice Council for the follow-up of the implementation and evolution of the proposals presented herein.