Brazil’s tax revenue service may revive a transaction reporting rule for fintechs due to money laundering concerns, with previous regulations paused after public backlash. A proposed alignment of fintech reporting with banks was delayed, highlighting ongoing issues with financial oversight in this sector.

Brazil’s tax revenue service is considering reinstating a regulation that mandates fintech companies to report transactions, primarily due to rising concerns about money laundering risks. Robinson Barreirinhas, the head of the agency, stated that although the authority possesses tools for monitoring financial transactions, these have not been extended to fintechs. Previously proposed regulations were paused last year following significant public opposition. A new regulation introduced in September 2023 aimed to harmonize fintech reporting to that of banks, but faced backlash that resulted in its postponement in January 2024. Barreirinhas also highlighted that organized crime in Brazil is often associated with smuggling, cryptocurrencies, and online betting.

The Brazilian tax authority is reassessing transaction reporting for fintechs due to money laundering concerns. Earlier regulations faced public disapproval, leading to their suspension. The situation underscores ongoing issues with financial oversight in the fintech sector, particularly as it relates to organized crime activities.

Original Source: www.techinasia.com