Starting this Monday (27), institutions associated with the Brazilian Federation of Banks (Febraban) must adopt stricter policies to identify and close orange and bet accounts (virtual betting companies) that operate without government authorization. The entity announced a new self-regulation what you want reinforce the fight against fraud, digital scams and money laundering schemes in the financial system.
The new rules aim to combat both orange accounts, opened legitimately but used by third parties for illicit activities, and cold accounts, created fraudulently, without the holder’s knowledge. It will also be mandatory to close betting accounts online without authorization from the Prizes and Betting Secretariat (SPA), of the Ministry of Finance.
“We are creating a milestone in the process of debugging toxic relationships with customers who rent or sell their accounts and who use the financial system to drain resources from scams, fraud and cyber attacks,” said the president of Febraban, Isaac Sidney, in a statement.
The new guidelines are as follows:
- Strict policies and specific criteria for checking fraudulent (“orange” and cold) accounts and accounts used by irregular bettors;
- Refusal of transactions and immediate closure of illicit accounts, with communication to the holder;
- Mandatory transfer of information to the Central Bank, allowing information to be shared between financial institutions;
- Monitoring and supervision of the process, by Febraban’s Self-Regulation Department, which may request, at any time, evidence of reporting and closing illicit accounts.
- Active participation of the fraud prevention, money laundering, legal and bank ombudsman areas, which even participated in the drafting of the new rules.
- In case of non-compliance, there will be punishments, from immediate adjustment of conduct and warning to exclusion from the Self-Regulation system.
Banks have the following additional obligations:
- Maintain internal policies for identifying and closing suspicious accounts;
- Present a declaration of compliance with Febraban Self-Regulation, prepared by an independent area, internal audit, compliance or internal controls;
- Promote, with the help of Febraban, communication, guidance and education actions to prevent scams and fraud.
Increase in digital crimes
The tightening of rules comes amid a escalation of cybercrimes and suspicious financial movements in the country. According to Sidney, the banking system faces unprecedented challenges given the explosion of scams and digital attacks.
“Without exception, banks and fintechs have a duty to prevent the opening and maintenance of fraudulent accounts. Bank accounts cannot serve as a shelter to launder criminal money”, reinforced the president of Febraban.
The leader also highlighted that opening the financial sector to competition is positive, but cannot compromise the integrity of the system. “We are witnessing the proliferation of fragile institutions in the face of financial crimes. Anyone who wants to negotiate the integrity of the system needs to be reached by the strong arm of the State and regulators”, added Sidney.
Organized crime
Febraban’s initiative adds to recent efforts by the Central Bank and public authorities to combat money laundering and organized crime. The new measures come after the Operation Hidden Carbonfrom the Federal Police, which dismantled a billion-dollar scheme linked to the Primeiro Comando da Capital (PCC) and the use of bank accounts at gas stations to hide illicit resources.
Furthermore, recent cyber attacks, such as those that diverted resources from outsourced companies that serve banks, reinforced the urgency for more robust control and prevention mechanisms.
Participants
The institutions participating in self-regulation are the following: ABC Brasil, BMG, Bradesco, BTG Pactual, Citibank, Sicredi, Daycoval, BRB, Banco do Brasil, Banco do Estado do Pará, Banco do Estado do Rio Grande do Sul, Banco do Nordeste do Brasil, Fibra, JP Morgan, Banco Mercantil, Original, Pan, Safra, Santander, Banco Toyota, Banco Volkswagen, Banco Votorantim, Bank of China (Brazil), Caixa Econômica Federal and Itaú Unibanco.
