The president of the Brazilian Federation of Banks (Febraban), Isaac Sidney, argued that both banks and fintechs “have a duty” to prevent the opening and maintenance of fraudulent accounts. When announcing self-regulation on the topic, Sidney recognized that opening up the financial industry is important for the sector, because it improves competitiveness and efficiency. “But we cannot relax the integrity of the system and the security of operations”, he considered.
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For Sidney, there is a “proliferation” of institutions vulnerable to financial crimes and the sector cannot be tolerant of loopholes in the entry or stay of criminals.
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“The financial system faces unprecedented challenges with the explosion of digital crimes and we have to close the loopholes for criminals in our channels for moving resources, which are transactional accounts”, highlighted the president of Febraban.
According to him, the “explosion” of digital crimes poses a series of challenges. Banks cannot allow the opening and maintenance of orange accounts, cold accounts and illegal Bets accounts, he highlighted. “That is why we are establishing mandatory procedures for all banks, to impose greater market discipline, in particular, to curb this type of account that flirts with crime,” he said.
Sidney also reiterated the criticisms he has made of the online betting market, which he defines as “vulnerability” to the financial system. “Banks must maintain vigilance with illicit resources in betting games”, he argued.
