Summary
- Febraban’s Self-Regulation began to require blocking of suspicious transactions and immediate closure of orange, cold accounts and irregular bets.
- The rules include sharing information with the Central Bank and supervision by Febraban Self-Regulation.
- Participating banks include Bradesco, Itaú Unibanco, Santander, Caixa Econômica Federal and Banco do Brasil.
The Self-Regulation of the Brazilian Federation of Banks (Febraban) adopted new measures for the financial sector. As a result, banks will be forced to block suspicious transactions and immediately close cold accounts (opened without the holder’s knowledge) and orange accounts (used illicitly with the holder’s consent).
The rules will also require financial institutions to immediately close irregular bets, that is, those without authorization from the Prizes and Bets Secretariat of the Ministry of Finance (SPA). They are in addition to standards announced in September by the Central Bank.
Febraban Self-Regulation is a system created by the financial institutions themselves to establish rules and commitments, as well as monitor compliance with them.
The new rules come into effect this Monday (10/27) and impose the following obligations:
- Strict policies and specific criteria for checking orange accounts, cold accounts and accounts used by irregular bets.
- Appeal of transactions and immediate closure of accounts involved in illicit activities, with communication to the holder.
- Mandatory sharing of information with the Central Bank.
- Monitoring and supervision by Febraban Self-Regulation.
- Active participation in the areas of fraud prevention, money laundering, legal and bank ombudsman.
Participating institutions must also maintain internal policies for identifying and closing suspicious accounts, submit declarations of compliance with Febraban Self-Regulation and promote communication and guidance actions on scams and fraud.
System participants who fail to comply with the rules will suffer punishments, such as adjustment of conduct, warning and exclusion from Febraban Self-Regulation.
What are the participating banks?
Febraban lists the following banks as participating in Self-Regulation:
- ABC Brazil
- BMG
- Bradesco
- BTG Pactual
- Citibank
- Sicredi
- Daycoval
- BRB
- Bank of Brazil
- State Bank of Pará
- State Bank of Rio Grande do Sul
- Banco do Nordeste do Brasil
- Fiber
- J.P. Morgan
- Mercantile Bank
- Original
- Pan
- Harvest
- Santander
- Toyota Bank
- Votorantim Bank
- Bank of China (Brazil)
- Caixa Econômica Federal
- Itaú Unibanco
With information from Febraban
Source: https://tecnoblog.net/noticias/bancos-fecham-o-cerco-contra-contas-laranjas-e-bets-irregulares/
