Law No. 9.613 establishes the legal framework to prevent the misuse of Brazil’s financial system for money laundering. Although the law does not single out wire transfers as a specific transaction type, its obligations apply to all financial operations involving the movement of funds, including those conducted electronically or through payment institutions. The law is designed to ensure transparency, traceability, and accountability in financial transactions, which encompasses domestic and cross-border wire transfers.

Customer Identification & Transaction Monitoring

Entities subject to the law must identify all customers and maintain comprehensive records of transactions that exceed thresholds set by competent authorities. This includes transfers of funds in any form, whether in cash, securities, or digital assets. The obligation applies to a broad spectrum of institutions and professionals involved in handling third-party funds, such as banks, currency dealers, card processors, and intermediaries facilitating fund transfers.

Information Requirements in Wire Transfer Contexts

For transactions comparable to wire transfers, institutions must ensure that the originator and recipient of funds can be identified and that the transaction can be traced. This includes verifying client data, retaining records for a minimum of five years, and establishing internal controls that support compliance with legal obligations. Entities must be able to detect unusual or suspicious activity involving the movement of funds and must evaluate transactions for signs of concealment or lack of economic purpose.

Suspicious Activity Reporting & COAF Oversight

If a wire transfer or any financial transaction appears suspicious or meets criteria defined by regulators, the institution must report it to the Council for Financial Activities Control (COAF) within 24 hours. Institutions must not disclose to clients that such reports have been made. COAF receives, analyzes, and disseminates these reports to appropriate authorities and plays a central role in financial intelligence related to money laundering through payment systems.

International Transfers & Cross-Border Cooperation

Where a transaction involves international transfers or suspected criminal proceeds from abroad, the law allows Brazilian judges to implement precautionary measures on assets at the request of foreign authorities. Even in the absence of a treaty, cooperation may proceed based on reciprocity. Assets may be frozen, auctioned, or retained during investigations into the movement of illicit funds across borders, reinforcing controls over cross-border wire activity.

Precautionary Measures & Asset Seizure

The law gives courts broad authority to order the restraint of assets, including those moved or transferred through the financial system. Judges may authorize valuation, auction, or preservation of such funds. These measures are applicable to assets moved through wire transfers if linked to suspected laundering activity. Institutions must cooperate with asset seizure orders and provide requested documentation to support tracing of financial flows.

Conclusion: WTR Compliance Integration

Brazil’s Law No. 9.613 supports the essential goals of wire transfer regulation by mandating transparency in fund movements, enforcing identification of parties to transactions, and ensuring that relevant information is preserved and shared with competent authorities. Although not structured as a specific wire transfer rule, the law operates as a comprehensive regulatory tool to ensure that wire-like transactions within and beyond Brazil’s borders comply with global anti-money laundering standards.