In a recent press conference, Finance Minister Dario Durigan introduced a new decree aimed at freezing the assets and profits generated from illegal betting activities. This decree, signed by President Lula on Friday, establishes critical measures to combat the unregulated betting market in Brazil.
Durigan emphasized that the Secretaria de Prêmios e Apostas (SPA) already regulates the market effectively. He stated, "Now, with the ordinance that imposes joint liability on financial institutions, we will have even more means to combat the illegal market. And the new decree will impose restrictions on transactions involving clandestine bets."
The decree permits the freezing of funds linked to illegal bets that have been identified within financial institutions. Banks, fintechs, and payment service providers will be required to freeze any funds in accounts related to unauthorized betting companies operating in Brazil within 48 hours. Additionally, these financial institutions could face joint liability for transactions associated with illegal betting operations.
The intention behind these actions is clear: financial strangulation of the illegal betting market. The SPA has pinpointed various illicit websites and has alerted Anatel to facilitate their blockage. Investigations are underway into the operators who have utilized 37 fintechs for their financial activities. According to Durigan, the government is collaborating with the federal police, Public Prosecutor's offices, the Council for Financial Activities Control (COAF), and the Federal Revenue Service to target these illegal operations.
“This measure decisively strengthens the Brazilian state's capacity to confront illegal operators. Those who operate outside the law cannot continue using the financial system to sustain clandestine businesses. By blocking the flow of funds in unauthorized betting operations, the regulation targets the economic core of illicit activities, reduces incentives for illegality and reinforces the government's commitment to serious, effective regulation guided by the public interest,” Durigan asserted.
The plan includes blocking fintech companies, mandating their operational suspension, and pursuing the expropriation of their assets. Funds obtained from expropriation will be allocated to the National Public Security Fund. Durigan reiterated a strong zero-tolerance policy against illegal betting and emphasized a more rigorous approach to financial transactions from clandestine operations.
Justice Minister Wellington César Lima e Silva acknowledged that there is a unified recognition that organized crime has diversified its operations into the illegal betting sector. He stressed, "It is essential that the government act strongly against this." Lima e Silva declared that the decree signed by Lula represents a significant advance in the fight against illegal betting. He indicated that the SPA would initiate actions, with the Ministry of Justice following up on the developments.
According to Lima e Silva, the fundamental first step is to cut off the financial resources that support criminal organizations.
