Keeping the Financial Markets Clean
Brazil has tightened control over financial transactions with a series of regulations that apply to a range of activities and market participants.
Since ancient times, governments
have strived to avoid large sums of money remaining outside
their control, primarily to curb the use of such money in
criminal or revolutionary activities. Brazil enacted its first
antimoney laundering measure in 1990, it provided for
identification of Brazilian taxpayers and extinguished bearer
securities, making concealment of assets from suspicious
activities more difficult in Brazil.
Since 1990, the county has added to
and refined its regulations to prevent abuses in the financial
markets. Brazil is strongly committed to the creation and
improvement of anti-laundering and anti-corruption mechanisms
to curb criminal activities and avoid the use of local
financial markets for such illicit purposes. The government's
active role in legislating against money laundering serves as
motivation for Brazilian companies to adopt high standards of
corporate governance and prevent tax evasion and the creation
of slush funds.
On March 3, 1998, Brazil enacted its landmark anti-money
laundering legislation, Federal...
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