Febraban Orders Banks to Shut Fraudulent Accounts, Cut Off Illegal Betting Operators

Overview

• Effective October 27, banks must detect, block and immediately close so‑called laranja and fria accounts used in fraud and money laundering.
• Accounts of online betting companies lacking authorization from the Secretariat of Prizes and Betting must be terminated, with fintechs subject to the same obligations.
• Institutions must refuse suspicious transactions, notify account holders of closures, maintain robust internal policies and submit compliance declarations.
• Cases must be reported to the Central Bank for information sharing, while Febraban will supervise enforcement and can impose penalties up to exclusion from the regime.
• The initiative responds to Operation Carbono Oculto and major supplier hacks, with Febraban pledging reports to COAF, the Federal Revenue and the betting authority to disrupt illicit flows.