Brazil Gives Banks 24 Hours to Freeze Illegal Betting Accounts

Brazil's Ministry of Finance published new rules requiring banks and payment institutions to combat illegal betting operations, according to a report by iGaming Times. Under the rules, once regulator SPA declares an operator illegal, financial institutions must freeze the operator's accounts and halt new transactions within 24 hours, confirm the freeze within 48 hours, and forward relevant information to the regulator for further processing of the frozen funds.

Banks are now also required to monitor suspicious transaction patterns, including mass deposits, frequent small payments, and mentions of betting or bonuses in Pix payment descriptions. The rules additionally establish joint tax liability: financial institutions that continue processing transactions for an illegal operator can be held responsible for the operator's unpaid taxes. Technical implementation requirements have not yet been published; once issued, banks will have 30 days to adapt their systems accordingly.

The new framework significantly expands the compliance obligations placed on Brazil's banking sector in the fight against illegal betting, shifting some enforcement responsibility onto financial institutions themselves rather than relying solely on regulatory action against operators directly. The joint tax liability provision in particular creates a strong financial incentive for banks to promptly comply with freezing orders once an operator is flagged as illegal.