Brazil's Central Bank approved a new regulation requiring all authorized account-holding institutions to reject payment transactions directed to accounts with a well-founded suspicion of involvement in fraud. The measure represents a significant tightening of security controls in the national financial system and aims to more effectively combat fraudulent practices that exploit Brazil's payment system.
The regulation takes effect immediately upon publication and sets a deadline of October 13, 2025, for financial institutions to adapt their systems to the new requirements. The rule applies to transactions carried out with any payment instrument and covers demand deposit accounts, savings deposit accounts, and prepaid payment accounts that show signs of involvement in fraudulent activities.
To identify suspicious accounts, institutions must use all available information, including data from electronic systems and both public and private databases. The assessment of well-founded suspicion of fraud involvement is at the discretion of each institution, which must implement its own analysis criteria and methodologies. When a transaction is rejected due to suspected fraud, the institution holding the recipient account is required to notify the account holder about the blocking measure.
The new regulation aligns with actions announced by Brazil's Central Bank in September, aimed at strengthening the security processes and protocols of the National Financial System. These measures were developed in response to the growing involvement of organized crime in attacks on financial and payment institutions, representing a direct response to emerging threats in the sector. The regulation amends BCB Resolution No. 142, dated September 23, 2021, incorporating these new obligations into the existing regulatory framework.
This post was summarized from its original version using AI, with human review.
Source: BACEN