Brazil’s tax agency plans to revisit transaction reporting rules for fintechs, highlighting money laundering concerns. Previous regulations faced public backlash, delaying implementation. Ongoing links between organized crime and fintech activities underscore the need for compliance.
Brazil’s tax revenue service is considering reinstating a mandate requiring fintech companies to report their transactions due to increasing concerns regarding money laundering risks. Robinson Barreirinhas, head of the agency, mentioned that although the tax agency possesses tracking capabilities for financial activities, these are not currently utilized for fintechs.
Last year, proposed regulations for fintech companies faced public opposition and were consequently suspended. Nonetheless, a new regulation introduced in September 2023 sought to align fintech reporting requirements with those of traditional banks. However, public backlash resulted in a delay that was confirmed in January 2024.
Furthermore, Barreirinhas highlighted that organized crime in Brazil is associated with various sectors, including smuggling, cryptocurrencies, and online betting. This has amplified the urgency for a structured reporting system within the fintech industry.
In conclusion, Brazil’s tax authority is reconsidering regulations for fintech transaction reporting due to potential money laundering challenges. Despite previous public opposition leading to suspended proposals, the ongoing concerns regarding organized crime may prompt a renewed push for compliance standards in the fintech sector.
Original Source: www.techinasia.com
