Buzzing Business in Brazil
LinkedIn is a great way to network with professionals in the compliance field, or any field for that matter. LinkedIn has definitely made it easier to maintain the art of networking in the absence of organizations being able to facilitate networking events since the start of the pandemic. I have made so many new and unique connections over the past year or so, and my curiosity increases. In one of my chats recently, I had the pleasure of speaking with Norman Baldwin, a Partner of GRC Risk Consulting to understand more about what he does and his experiences in Brazil. As a successful consultant and advisor for over 20 years, I valued his insight into the image that Brazil presents as it relates to anti-money laundering (AML) Compliance both historically and today.
Historically speaking, Brazil faced challenges surrounding money laundering, fraud, corruption, drug trafficking, weapons trafficking, smuggling, embezzlement and tax evasion to name a few. In no way am I singling out Brazil for political corruption, as it happens almost everywhere in varying degrees, the difference here is how Brazil has sought to deal with its image surrounding so many crimes highlighted.
In 2012, regulators revamped the AML requirements under Brazilian law to increase the level of stringency embedded into the laws. These laws and rules were set to ensure that financial institutions and entities that engaged in financial activities were held accountable for the fight against financial crimes. The original laws were established in 1998 to regulate the economy’s financial engagements. However, there is always room for improvement. The Government of Brazil continued to learn from typologies, cases and best practices to revamp their laws in 2012 to better prevent, detect and monitor financial activities.
Brazil is said to have the largest online population in Latin America with a majority having access to a smartphone over a traditional bank account. No wonder Brazil has continuously maintained its status as a leader in the Fintech ecosystem especially in Latin America. In recognizing the accessibility of a smartphone over a bank account, startup Fintech companies embraced technological advances. Much of Brazil’s technology is also accessible in the global market and also utilized internationally. Brazil is most certainly a pioneer in the FinTech sector implementing digital solutions for customers with mobile application alternatives and payment solutions offering a digital account. Cryptocurrency and cryptoassets in general are not formally regulated in Brazil, however there is quite a bit of transactional buzzing happening. As of 20 August 2021, the President of the Central Bank in Brazil recently endorsed crypto-regulations. This is essential with headliners such as “Mercado Bitcoin Becomes Brazil's First Crypto Unicorn With Softbank Round''; where unicorn relates to tech companies worth more than US$ 1 billion.
Norman also mentioned that Brazilian banks have implemented biometric authentication to access ATMs in the early 2000s; a hand vein reader. As Norman explained the process and I reminded myself to close my awestruck jaw, I began to understand that despite its high profile of crime, the government and businesses in Brazil have continuously worked to prevent money laundering and combat other crimes.
As a regulatory compliance consulting firm, it is extremely important to maintain a strong network of professionals to better support clients and their needs. LinkedIn has been an extremely beneficial resource for building and maintaining a wealthy network of connections.
