Brazil’s central bank is readying a set of regulatory measures designed to mitigate the risk of cyberattacks on the national payments system and combat the use of fintechs by organised crime, Reuters reported, citing sources.
According to Deputy Minister of Finance Fábio Silveira, the measures, which will be announced at a news conference, will contain a ceiling on transfers via Pix and TED, the country’s main electronic payment tools.
However, the plan, which was also reported by O Globo and Valor Econômico, also includes stricter requirements for fintechs and the introduction of baseline operating standards for technology providers serving the financial system.
The central bank said further measures will be outlined by a board member, though no additional details were disclosed.
Transfer caps to reduce criminal exploits
One of the central bank’s primary goals is to establish maximum value limitations for bank transfers.
The new limits will apply to both individuals and businesses, including Pix, Brazil’s most popular payment method, and the older TED system.
According to the reports, the limitations would be set high enough to prevent consumers and companies from experiencing disruptions in normal payments.
However, they are intended to prevent abnormally large transfers in a single transaction, which were exploited in assaults earlier this year.
In certain cases, thieves were able to move hundreds of millions of reais in a short period of time.
By limiting the maximum transfer size, officials hope to make it simpler to spot suspicious activity, as huge payments would have to be split across numerous transactions.
As a result, the central bank would have a better understanding of patterns that could indicate fraudulent or illegal activity.
Oversight of fintechs
Another component of the proposal is an expansion of the central bank’s direct oversight of fintechs.
Under current rules, payment institutions are required to meet full regulatory standards by 2029.
The new framework would bring that deadline forward to 2026.
By accelerating the timeline, the central bank would be able to enforce stronger supervision sooner, aiming to close loopholes that could be exploited by criminal organisations.
The move comes as authorities intensify investigations into the role of fintechs in large-scale money laundering schemes.
Combating organised crime
The call for heightened supervision comes on the heels of Operation Hidden Carbon, an investigation that has focused on how various criminal factions have used fintech accounts to launder money.
Prosecutors have cited such schemes as ineffective in unmasking the proceeds of illegal transfers.
The Federal Revenue Service has already tried to address it, tightening the reporting requirements for fintechs to provide more information about the financial transactions of their customers.
Expectations are that the central bank’s measures will underpin those efforts by limiting channels that organised groups have utilised to transfer funds below the radar.
Pocket accounts and delay measures
Officials are also considering taking action against so-called pocket accounts, which are accounts created by fintechs within traditional banks.
These arrangements make it difficult to identify the true owner of money, complicating efforts to trace illicit movements.
Not all initiatives will have an immediate effect. While the transfer cap is expected to be imposed as soon as the rules are released, other initiatives will be phased in gradually.
This tiered strategy is intended to allow institutions time to respond while promptly resolving the most critical security weaknesses.
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