Agents Targeted for Money Laundering and the Financing of Terrorism

On 9 May 2018 the Brazilian Council of Control of Financial Activities (known as “COAF”) issued a new resolution (Resolution COAF 30/2018) targeting persons who act in the promotion, brokering, marketing, agency and negotiation of athletes and artists’ transfer rights.

Specifically, the Resolution addresses rules and procedures to be followed for preventing money laundering and the financing of terrorism, imposing an obligation on the agents to “monitor the transactions carried out and evaluating the existence of suspicions in the proposal and/or transactions with their clients”.

Agents will have to pay “special attention” to “uncommon” transactions and those transactions that “due to their characteristics insofar as they relate to the parties involved, amounts, how the transactions are carried out, objects, complexity, documents used or due to the lack of legal or economic reasons may amount to serious indicia of [there being money laundering and financing of terrorism crimes]”.

Agents will need to provide details about the transactions to COAF, including the final beneficiaries who are deemed to be “those individuals who effectively hold or control the client legal entity or that have the power to induce, influence, use or benefit from that legal entity”.

The Resolution provides that any transaction involving the payment or receipt in cash of over R$30,000 (approximately US$8,100) must be reported regardless of any indicia of illegal activity.

The documents relating to the transaction must be kept by the agent for a period of not less than five years.

The Resolution comes into force on 6 August 2018.

For more information contact me.

Last modified: May 21, 2018