{"id":199323,"date":"2025-08-29T10:16:30","date_gmt":"2025-08-29T13:16:30","guid":{"rendered":"https:\/\/igamingbrazil.com\/nao-categorizado\/2025\/08\/29\/coaf-in-crisis-the-role-of-betting-in-preventing-money-laundering\/"},"modified":"2025-08-29T11:42:09","modified_gmt":"2025-08-29T14:42:09","slug":"coaf-in-crisis-the-role-of-betting-in-preventing-money-laundering","status":"publish","type":"post","link":"https:\/\/igamingbrazil.com\/en\/nao-categorizado\/2025\/08\/29\/coaf-in-crisis-the-role-of-betting-in-preventing-money-laundering\/","title":{"rendered":"COAF in crisis: the role of betting in preventing money laundering"},"content":{"rendered":"\n

In this article, Fred Justo<\/strong>, Director of Money Laundering Prevention (PLD)<\/strong> at Legitimuz <\/strong><\/a>and former general coordinator of AML at the Secretariat of Prizes and Bets (MF)<\/strong>, explains how betting operators can collaborate with COAF (Financial Activities Control Council)<\/strong> to strengthen reporting of suspicious activities and improve the fight against money laundering. <\/p>\n\n

Fred shares his experiences and strategies for engaging the betting industry in a joint effort to create a safer and more regulated market.<\/p>\n\n

Those who read our column are accustomed to covering more technical issues related to money laundering prevention<\/strong> in the betting<\/strong> industry. But we’re interrupting our publication to make a very important request for help<\/strong>. <\/p>\n\n

Whether with the former hat of general coordinator of AML<\/strong> at the Secretariat of Prizes and Bets-MF<\/strong> or now, as director of AML at Legitimuz<\/strong>, I am always asked why, when drafting Ordinance SPA\/MF 1.143\/2024<\/strong>, we did not establish a minimum value for mandatory reporting of suspicious activity to COAF<\/strong> (Financial Activities Control Council)?<\/p>\n\n

The answer was always on the tip of everyone’s tongue: the idea was not to automate this type of communication<\/strong>. It’s no secret to anyone working in the AML-FTP<\/strong> field that automating communication can often be weak and lacking in detail<\/strong>. The obligated entity acts as if washing its hands<\/strong> of the matter; it communicates, complies with the law, and now, COAF <\/strong>has to figure out how to analyze the report’s content. <\/p>\n\n

It was precisely with this situation in mind that we, when drafting the Standard, came to the conclusion that the betting operator <\/strong>had the obligation to deliver broader and more detailed communication. <\/p>\n\n

And why is that? Because no one knows their vulnerabilities better than the operator themselves<\/strong>, and because of another detail that deserves our full attention: because COAF is experiencing, and has been for some time now, a delicate moment<\/strong>, lacking technological infrastructure and, especially, lacking personnel. <\/p>\n\n

COAF: what is it and what is its function?<\/h2>\n\n

COAF<\/strong> is Brazil’s Financial Intelligence Unit<\/strong>, created<\/strong> by Law 9.613\/1998<\/strong><\/a>. <\/strong>Its main function is to receive, analyze, and forward to the appropriate authorities <\/strong>financial transactions suspected of money laundering<\/strong><\/a>.<\/p>\n\n

In theory, this agency is essential for identifying and stopping the flow of illicit money. However, in practice, COAF has become a key player in the investigation of criminal organizations<\/strong>. <\/p>\n\n

It has come to be considered the best tool to combat organized crime in Brazil, as security forces have realized that following the money<\/strong> is more effective than simply confronting these organizations directly.<\/p>\n\n

COAF’s structural challenges<\/h3>\n\n

Although COAF has become more relevant over the years, it still faces serious structural challenges<\/strong> that directly impact its operational capacity:<\/p>\n\n