Payment specialist for Brazil, Fernanda Zago, emphasizes the importance of preventing risks and reputational damage by choosing partners that ensure operational compliance.
To mitigate fraud and prevent money laundering, the sports betting industry is rigorously monitored by specialized agencies and is subject to a series of regulatory requirements. In a regulated market, Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) rules and monitoring procedures are more transparent and strict, establishing high compliance standards for all participants.
These measures are essential to ensure the integrity and security of this market, while guaranteeing that all transactions are in full compliance with current regulations. Adopting such practices not only reduces financial and operational risks but also protects the reputation of the institutions involved, strengthening consumer and partner trust in the industry.
It is crucial for sports betting operators to establish partnerships with Central Bank-authorized payment institutions that possess the maturity necessary to ensure secure and reliable operations while fully complying with the applicable regulations. As of January 1, for instance, bettors’ accounts linked to unauthorized institutions will be barred from making deposits or withdrawals, highlighting the need for a regulated and safe financial environment.
Additionally, industry operators must ensure clear segregation between the funds designated for bettors’ deposits, which must be kept in “transactional accounts,” and the resources used for operational management and liquidity, known as “proprietary accounts.” These measures are vital to mitigate risks and ensure transparency and security in sports betting operations.
“Choosing a Central Bank-authorized institution with proven operational maturity means working with partners who follow strict auditing processes and provide operators with the security of being fully compliant with industry regulations, including Anti-Money Laundering (AML) norms. The implementation of robust security and compliance mechanisms is essential to meet the requirements set by the Ministry of Finance and the Sports Betting Secretariat, the regulatory bodies overseeing operators. Having a partner that is already accustomed to these rules brings greater security and peace of mind,” emphasizes Fernanda Zago, payment specialist for Brazil and CEO of WEpayments.
Authorized Payment Institutions are required to segregate their own funds from third-party resources, which are protected from seizure. They must also adopt rigorous fraud prevention measures in their payment operations with bettors. This includes utilizing advanced KYC (Know Your Customer) mechanisms to mitigate risks, as well as conducting thorough checks such as verifying identities against international restriction lists (UN, OFAC, INTERPOL), confirming the compatibility of bettors’ CPF numbers and bank accounts with the data registered on the operator’s platform, and detecting documents belonging to deceased individuals, or those that are void or canceled.
A Payment Institution authorized by the Central Bank to operate in the iGaming market since 2023, WEpayments is fully committed to complying with Portaria 615 and offers solutions that enable operators to confidently navigate both the current and future regulatory landscape. “Our solution allows operators to pre-validate their customer databases, facilitating impact measurement and preventive actions, while also providing a payment platform already adjusted to meet the new regulatory requirements this year,” concludes Fernanda.
