Brazil Country Summary

FATF Status

Brazil is not on the FATF AML Deficiency list.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Brazil was undertaken in 2023. According to that Evaluation, Brazil was deemed Compliant for 10 and Largely Compliant for 19 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Brazil faces significant challenges related to crime and corruption, with enforcement of anti-corruption laws being inconsistent, particularly at the state level. While the country has made strides in prosecuting cases against criminal organizations, the prevalence of corruption and the influence of powerful mafia-style groups like the Primeiro Comando da Capital (PCC) and Comando Vermelho (CV) continue to undermine governance and public trust.

Brazil stands as the second-largest economy in the Western Hemisphere and the tenth-largest globally, with a notable foreign direct investment (FDI) inflow of $66 billion in 2023, making it the largest FDI destination in Latin America despite a slight decline from the previous year. The country's economic growth has been steady but slow, with GDP growth projected to rise to 3.2% in 2023 and 3.4% in 2024, supported by low unemployment rates and increased government spending, although challenges such as high debt levels and currency devaluation persist. While Brazil has made strides in reforming its tax system and improving the business environment, foreign investors still face hurdles including high operational costs, regulatory complexities, and infrastructure deficiencies, which continue to impact the overall investment climate.