SPA-MF enforces regulation for institutions to refuse illegal betting accounts
Both financial and payments institutions may not execute the deposits or financial gains of prizes from illegal betting agents, in addition to having to report suspicious activities.
Key Points
- The new regulation also establishes a 24-hour deadline for institutions and payment arrangement instituters to report any suspected case of illegal fixed-odds betting
- SPA-MF Regis Dudena stated the SPA had already sent 22 notifications to financial and payment institutions during February, warning of illegal use
The Secretariat of Prizes and Betting of the Ministry of Finance (SPA-MF) has published an ordinance that regulates how financial and payments institutions in Brazil must act in the face of illegal fixed-odds betting companies.
According to the legislation, institutions and payment arrangement institutes cannot maintain transactional accounts of illegal operators, nor execute deposit and payment operations of prizes.
The new regulation also establishes a 24-hour deadline for all institutions to report any suspected case of a company that is operating fixed-odds betting illegally to the SPA-MF. Within the communication, companies must explain why the operations are seen as suspicious, in addition to indicating the CNPJ and corporate name of such operators.
“The new measure, along with the takedown of illegal websites and advertising, will be a fundamental reinforcement for the fight against those who want to act without authorization and for the protection of bettors, as it aims to prevent these sites, which put people’s economy and finances at risk, from being able to receive financial resources, closing the siege on illegal action,” SPA-MF Regis Dudena said.
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Dudena also explained how SPA sent over 20 notifications to financial and payment institutions throughout February, warning companies that its business was being used by illegal betting operators.
Ordinance 566 from SPA-MF establishes that institutions and payment arrangement settlers which fail to comply with these rules may be subject to inspection proceedings and, if proven, sanctioning action.
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