Brazil's Federal Police Creates Unit Against Money Laundering of Cryptocurrencies and Illegal Betting

The Federal Police of Brazil has proposed an internal reorganization to investigate the use of cryptocurrencies in money laundering and to detect irregular betting. This project, backed by President Luiz Inácio Lula da Silva, includes the creation of the General Coordination for the Suppression of Money Laundering and Asset Recovery (CGLA), which will have a specialized financial intelligence service to track suspicious transactions involving digital assets. Additionally, the government has formalized Provisional Measure 1.394, which prohibits the offering and advertising of fixed-odds betting throughout the country. This measure aims to close evasion channels and requires the Police to share operational intelligence with the Federal Revenue and the Council for the Control of Financial Activities (COAF). Companies with expired licenses must retain records of operations for five years and notify COAF about atypical patterns. The regulation also includes blocking websites and interrupting banking transactions to informal operators. Provisional Measure 1.394/2026 is currently under review in the National Congress, with an amendment deadline until October 13. Modifications have been proposed to allocate taxes and fines to the Unified Health System and to prohibit access to betting for beneficiaries of Bolsa Família. This legislative tightening coincides with the reorganization of the cryptocurrency sector by the Central Bank of Brazil, which has set the mandatory reporting of transfers to self-custody wallets for early 2027.

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