The year 2025 marks the first year of full operation for the regulated betting market, but thousands of illegal gambling websites continue to operate unlawfully. The information received by Coaf involves all types of platforms.
The Brazilian Federation of Banks (Febraban) stated that the start of the new regulated betting market caused a “significant impact” on the Anti-Money Laundering (AML) departments within financial institutions, which are adapting their monitoring processes.
Betting companies, for their part, say they prioritize crime prevention through both internal and external information, and maintain institutional cooperation with Coaf and Febraban to help improve the sector. They also emphasize that illegal betting platforms account for part of the rise in reported suspicious activity.
The intelligence agency's analysis was based on keywords and expressions found within the universe of reports submitted daily by companies and institutions legally obligated to file them, mainly banks.
The reports indicate signs of atypical transactions, inconsistencies between inflows and outflows, money laundering, transactions involving “straw men,” and doubts about the origin of funds.
There are, for example, reports involving companies not registered as betting operators that recorded high volumes of transactions on dates and times close to major sporting events, such as football matches. There are also reports of individuals suspected of money laundering who transferred funds to legal or illegal betting platforms.
Coaf spontaneously forwards the information it holds to investigative bodies, such as the Federal Police and the Federal Prosecutor’s Office. But the data stored by the agency are also used in targeted inquiries about individuals and companies under investigation, at the request of authorities.
With the surge in reports, investigators consulted by the newspaper assess that the State is expanding the data universe available for investigations.
The agency did not comment on the matter. Technicians familiar with Coaf’s operations say that the fact that reports have more than tripled in one year is positive because it broadens the range of information that can support investigations.
The next step is to improve the quality of the reports submitted. Operators in the betting and financial sectors say that, given the novelty of the segment, at least part of the increase in reports is due to an inclination to err on the side of excess rather than omission.
Febraban emphasized that banks’ AML units had to incorporate new processes due to the launch of the regulated betting market. There was a “significant impact” that increased the demand for controls and analyses.
“As part of strengthening the sector’s commitment to integrity and the prevention of financial crimes, Febraban and the banks adopted measures to prohibit the opening of ‘straw,’ fake, or illegally linked betting accounts, and to immediately close such accounts when identified,” the federation noted.
The National Association of Games and Lotteries (ANJL), one of the main representatives of licensed betting companies, stressed that because this is a newly regulated sector, banks and companies are still learning what needs to be reported to Coaf and how. Initially, the number of reports is high, but over time, they should become more qualitative.
“This maturity curve will lead to fewer reports, but reports of higher quality. It is natural that, at this moment, given the legal requirement, institutions err on the side of excess,” said ANJL legal director Pietro Cardia Lorenzoni.
He also pointed to the rise of illegal betting platforms. “It is a segment that does not follow legal requirements and does not have the same controls. And if there is an illegal market, it seems likely that money laundering operations might also grow through it,” he commented.
Source: Estadão
