Brazil: Rules against money laundering created for state lotteries

In this resolution, strict registration norms are defined, as well as the performance of legal persons that act in the lottery operation, direct or indirectly, money distribution or any property through the lottery operation treated in the Decree-Law number 204, from February 27th, 1967.

On top of the detailed information demanded in the filling of the electronic file of the state lotteries together with the entity and the update of data, the resolution determines the registration of “any delivery or payment of prize in which there is an identification of the winner.”

According to Coaf resolution, legal persons dedicated to the operation of lotteries and distribution of prizes will have to pay “special attention to prizes or proposals of operations” that may involve crime signs. In those cases, the Coaf will have to be notifies, in a 24-hour deadline, of  “any delivery and/ or payment of a prize or operation proposal,” and parties involved should be informed.

Lotteries will also have to develop and put into practice internal control procedures to identify illegal operations. Informations communicated to Coaf will be classified as “confidential” and will have to be filed by lottery agencies for five years.