Brazil Expands Fraud Reporting Rules to Unauthorized Betting Operators

Brazil Central Bank Expands Fraud Data Sharing to Unauthorized Betting Operators – Financial and Crypto Service Providers Face New Compliance Duties

Key Takeaways

• The Central Bank of Brazil has expanded fraud data sharing rules to cover unauthorized betting operators under Resolution BCB No. 569.
• The amendment updates Resolution BCB No. 343 of October 4, 2023, and entered into force upon publication in the Official Gazette.
• Virtual asset service providers are now explicitly included in the fraud reporting framework.
• Implementation deadlines are set for October 30, 2026, for virtual asset services and December 1, 2026, for financial and payment services linked to unauthorized betting operators.

Central Bank Resolution 569 Expands Scope of Fraud Reporting

The Central Bank of Brazil has approved Resolution BCB No. 569, extending existing fraud data sharing obligations to include information related to unauthorized betting operators. The measure was approved by the Board of Directors on May 19 and amends Resolution BCB No. 343 of October 4, 2023.

Resolution BCB No. 343 established procedures for the exchange of data and information on evidence of fraud under Joint Resolution No. 6 of May 23, 2023. With the new amendment, the electronic system used by supervised financial institutions to share fraud related information will now also cover activities linked to unauthorized betting operators.

The updated rule entered into force on the date of its publication in the Official Gazette of the Union. However, institutions subject to the changes have been granted later deadlines to adjust their operational systems.

The resolution was signed by Gilneu Francisco Astolfi Vivan, Director of Regulation, and issued under Article 9 of Law No. 4.595 of December 31, 1964. It also refers to Articles 9-A of Law No. 4.728 of July 14, 1965, Article 9, item II, of Law No. 12.865 of October 9, 2013, and Article 24-A of Law No. 14.790 of December 29, 2023, as well as Article 9 of Joint Resolution No. 6.

Unauthorized Betting Operators Explicitly Included in Fraud Data Exchange

A central change introduced by Resolution BCB No. 569 is the insertion of a new Article 1-A into Resolution BCB No. 343. The new provision states that data to be shared and information on evidence of fraud includes evidence of actions by natural or legal persons acting as unauthorized betting operators, as defined in Article 24-A, paragraph I, of Law No. 14.790 of December 29, 2023.

This amendment formally widens the scope of the fraud information sharing system. Banks, payment institutions, and other entities authorized by the Central Bank must now ensure that activities linked to unauthorized betting operators are captured within their reporting and information exchange processes.

Consortium administrators remain outside the obligation established under Joint Resolution No. 6 and are not included in the expanded framework.

In addition, Article 2 of Resolution BCB No. 343 has been revised to add two new categories of activity. Item V now covers the provision of virtual asset services. Item VI covers the provision of financial and payment services to individuals or legal entities acting as unauthorized betting operators, as referred to in Article 24-A, item I, of Law No. 14.790.

Paragraph 1 of Article 2 has also been adjusted so that payment service provisions apply to these newly added categories.

New Obligations for Virtual Asset and Payment Service Providers

By explicitly including virtual asset services in the scope of fraud data sharing, the Central Bank extends reporting duties to institutions operating in crypto related segments under its supervision.

Financial institutions and payment institutions must reflect these changes in the electronic systems used to exchange fraud related data. This requires mechanisms capable of identifying, recording, and sharing information that qualifies as evidence of fraud in connection with the newly covered activities.

For cases involving financial and payment services provided to unauthorized betting operators, a new paragraph 4 has been added to Article 3 of Resolution BCB No. 343. It states that, in situations related to Article 2, item VI, the required identification must refer specifically to unauthorized betting operators.

This clarification establishes that institutions must distinguish such operators within their fraud reporting systems rather than applying generic classifications.

Staggered Implementation Deadlines Set for 2026

Resolution BCB No. 569 introduces Article 13-A to define separate implementation timelines for the affected institutions.

Entities involved in virtual asset services have until October 30, 2026, to adapt their systems to the new requirements. Institutions providing financial and payment services to unauthorized betting operators have until December 1, 2026, to implement the necessary operational measures.

The staggered deadlines provide additional time for institutions to develop and integrate the required identification and reporting mechanisms. While the resolution is already in force, the operational obligations tied to system adjustments will become enforceable according to these timelines.

Our Assessment

Resolution BCB No. 569 expands Brazil’s existing fraud data sharing framework to explicitly include unauthorized betting operators and virtual asset service providers. Financial institutions, payment institutions, and supervised crypto service providers must update their electronic systems to identify and report fraud related information linked to these activities. With defined deadlines in late 2026, the Central Bank has set a structured timeline for compliance while broadening oversight of financial flows connected to unauthorized betting operations.