Brazil’s tax agency may revive transaction reporting rules for fintechs due to money laundering concerns, after previous regulations faced public disapproval. The head of the agency highlighted the need to align fintech oversight with banking standards amid rising organized crime linked to illicit financial activities.
The Brazilian tax revenue service is considering reinstating a rule requiring fintech companies to report transactions, primarily due to concerns regarding money laundering risks. Robinson Barreirinhas, the agency’s head, noted that the existing tools for monitoring financial activities are not being utilized for fintechs at this time.
Regulations that proposed reporting requirements for fintechs were previously suspended last year following significant public opposition. A new regulation introduced in September 2023 intended to standardize reporting practices with banks; however, it faced backlash, leading to its postponement in January 2024.
Barreirinhas cautioned that there is a strong connection between organized crime in Brazil and activities related to smuggling, cryptocurrencies, and online betting. The potential revival of transaction reporting rules may serve as a measure to combat these criminal associations.
In summary, Brazil’s tax revenue service is poised to reconsider transaction reporting requirements for fintechs in light of money laundering concerns. Previous regulatory attempts faced public opposition, resulting in delays. The agency’s leadership has signaled a commitment to addressing organized crime linked to financial technologies and illegal activities.
Original Source: www.techinasia.com
