> For the complete documentation index, see [llms.txt](https://www.opensourcelaw.com.br/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.opensourcelaw.com.br/en/legislation/13.-money-laundering-law.md).

# 13. Money Laundering Law

## Crimes:

<details>

<summary><strong>Crimes of "Laundering" or Concealment of Assets, Rights and Values</strong></summary>

To conceal or disguise the nature, origin, location, disposition, movement, or ownership of assets, rights, or values arising, directly or indirectly, from a criminal offense.

Penalty: imprisonment from 3 (three) to 10 (ten) years, and a fine.

The same penalty applies to anyone who, in order to conceal or disguise the use of assets, rights, or values arising from a criminal offense:

I - converts them into lawful assets;&#x20;

II - acquires, receives, exchanges, trades, gives or receives them as security, keeps them in safekeeping, deposits, moves, or transfers them;&#x20;

III - imports or exports goods with values that do not correspond to the true ones.

The same penalty also applies to anyone who:

I - uses, in economic or financial activity, assets, rights, or values arising from a criminal offense;

II - participates in a group, association, or office knowing that its main or secondary activity is directed toward the commission of crimes provided for in this Law.

</details>

{% hint style="danger" %}
The penalty shall be increased by 1/3 (one third) to 2/3 (two thirds) if the crimes defined in this Law are committed repeatedly, through a criminal organization <mark style="background-color:purple;">or through the use of a virtual asset</mark>.
{% endhint %}

## Penalties:

The effects of conviction, in addition to those provided for in the Penal Code, are:&#x20;

* the forfeiture, in favor of the Union - and of the States, in cases within the jurisdiction of the State Courts -, of all assets, rights and values directly or indirectly related to the commission of the crimes provided for in this Law, including those used to post bail, without prejudice to the right of the injured party or of a third party acting in good faith;
* the prohibition from holding any public office or function and from serving as director, board member, or manager of legal entities, for twice the length of the custodial sentence imposed.

<mark style="background-color:purple;">To the persons and managers of legal entities</mark>, who fail to comply with the obligations, the following sanctions shall be applied, cumulatively or not, by the competent authorities:

* warning;
* variable monetary fine not exceeding: a) twice the value of the transaction; b) twice the actual profit obtained or that would presumably have been obtained by carrying out the transaction; or c) the amount of R$ 20,000,000.00 (twenty million reais);&#x20;
* temporary disqualification, for a period of up to ten years, from holding the position of manager of the obligated legal entities;
* revocation or suspension of authorization to carry out the activity, operation, or functioning.

## Subjects:

The obligations apply to natural and legal persons that have, on a permanent or occasional basis, as their main or secondary activity, cumulatively or not:

* the raising, intermediation, and investment of third-party financial resources, in national or foreign currency;
* the buying and selling of foreign currency or gold as a financial asset or exchange instrument;
* the custody, issuance, distribution, settlement, trading, intermediation, or administration of securities or marketable securities;
* branches or representations of foreign entities that carry out any of the listed activities in Brazil, even occasionally;
* natural or legal persons, domestic or foreign, who operate in Brazil as agents, managers, attorneys-in-fact, commission agents, or who in any way represent the interests of a foreign entity that carries out any of the mentioned activities;
* natural or legal persons who engage in real estate development or the buying and selling of real estate;
* natural or legal persons who trade in jewelry, precious stones and metals, works of art and antiques;
* natural or legal persons who trade in luxury or high-value goods, broker their sale, or carry out activities involving large amounts of cash;
* natural or legal persons who provide, even occasionally, advisory, consulting, accounting, auditing, counseling, or assistance services, of any nature, in transactions: a) for the purchase and sale of real estate, commercial or industrial establishments, or shareholdings of any nature; b) for the management of funds, securities or other assets; c) for the opening or management of bank, savings, investment, or securities accounts; d) for the creation, operation, or management of companies of any nature, foundations, trusts or similar structures; e) financial, corporate or real estate; and f) for the assignment or acquisition of rights over contracts related to professional sports or artistic activities;
* natural or legal persons who act in the promotion, intermediation, commercialization, agency, or negotiation of transfer rights of athletes, artists, or fairs, exhibitions, or similar events;
* <mark style="background-color:purple;">virtual asset service providers</mark>**.**

## Obligations:

* identify clients and keep records up to date, in accordance with instructions issued by the competent authorities;
* keep records of all transactions in national or foreign currency, securities, credit instruments, metals, <mark style="background-color:purple;">virtual assets</mark>, or any asset that can be converted into money, exceeding the limit set by the competent authority and under the terms of instructions issued by it;
* adopt internal policies, procedures, and controls;
* register and keep their registration up to date with the regulatory or supervisory body and, if none exists, with the Financial Activities Control Council (Coaf);
* comply with the requests made by Coaf at the frequency, in the manner, and under the conditions established by it;
* report to Coaf, refraining from informing any person, including the person to whom the information refers, within 24 (twenty-four) hours, of any proposal or transaction that may constitute serious evidence of a crime.

{% hint style="warning" %}
The records and registrations shall be kept <mark style="background-color:purple;">for a minimum period of five years from the closing of the account or the completion of the transaction</mark>, a period that may be extended by the competent authority.
{% endhint %}

{% hint style="success" %}
Good-faith reports, made in the manner provided for in this article, shall not entail civil or administrative liability.
{% endhint %}