Brazil’s tax revenue agency is expected to revisit discussions on requiring financial technology companies to report transaction values amid concerns over money laundering, agency head Robinson Barreirinhas said on Tuesday.
Speaking at a Senate hearing, Barreirinhas highlighted strong evidence that lesser-known payment institutions are being exploited for illicit financial activities. The government had initially planned to extend transaction-tracking requirements to fintechs but suspended the measure last year following public backlash.
“I don’t want to demonize fintechs … but the truth is that many end up being used (for illicit transactions) due to the ease of opening accounts,” Barreirinhas stated, emphasizing the need for stricter regulations on account openings.
In September, Brazil’s tax agency issued a rule mandating fintechs to report transactions—including those made via the widely used Pix instant payment system—aligning their reporting obligations with traditional banks. However, opposition to President Luiz Inácio Lula da Silva framed the measure as an effort to impose new taxes on workers, leading the administration to suspend the rule in January after a sharp decline in Lula’s approval ratings.
Barreirinhas also voiced concerns about organized crime financing in Brazil, citing illicit trade in smuggled cigarettes, e-cigarettes, cryptocurrencies, and online betting as key issues requiring regulatory attention.