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How Your Business Can Tackle Fraud In Brazil With CommerceGate’s AML PIX Solution

By CommerceGate Team

CommerceGate's AML PIX solution helps betting platforms in combating money laundering by introducing stringent controls and verification measures.

Home to millions of fintech early adopters, Brazil can be considered a benchmark for financial innovation — especially after the introduction of PIX, the Central Bank of Brazil’s instant payment method that, in April 2024, compounds roughly 154MM+[1] active Natural Person Users.

However, this innovative spirit has also attracted cyber-criminals, making Brazil “a hotspot for financial crime”[2]. According to a study carried out by Visa[3], Brazil has one of the highest fraud risk rates among 200 countries and territories.

The Fraud Scenario In iGaming And Sports Betting In Brazil

High-risk industries, such as iGaming and Sports Betting, are often targets for criminals attempting money laundering.

Criminals in Brazil use sports betting platforms to launder money by leveraging the high volume of transactions and user anonymity. They often place bets using illicit funds and then withdraw the winnings through multiple accounts to cloud out the source of the funds.

But with new regulations in place that aim to improve transparency and security in betting operations, industries can rely on extra layers of security to prevent fraud and stay compliant. This is where Anti-Money Laundering (AML) solutions come in.

What Are AML Solutions?

AML (Anti-Money Laundering) solutions are comprehensive frameworks and technologies designed to detect, prevent, and report activities related to money laundering and financial crimes. These solutions encompass a range of tools that analyze financial transactions and customer data to identify suspicious behavior and comply with regulatory requirements.

Meet CommerceGate’s AML PIX Solution And Keep Your Business Compliant

CommerceGate’s AML PIX solution helps betting platforms in combating money laundering by introducing stringent controls and verification measures.

By allowing merchants to create QR codes linked to specific CPFs (Brazilian Tax IDs), the solution ensures that payments originate from verified individuals. This significantly reduces the risk of money laundering by preventing the use of anonymous or illicit funds for betting activities.

Furthermore, the solution integrates seamlessly with existing payment infrastructure, streamlining compliance efforts and enhancing transparency in financial transactions.

How The AML PIX Solution Works

With CommerceGate’s AML PIX Solution, merchants can create a QR code for specific CPFs, ensuring control over payments and guaranteeing they come from verified users.

This feature allows merchants to transmit the CPF code to CommerceGate and, with an additional parameter, decide whether to generate a QR code specifically for the named user. The QR code can be easily paid from any bank account, provided the account holder has the same CPF provided by merchants.

CommerceGate’s AML PIX solution provides betting platforms with the tools they need to maintain regulatory compliance and safeguard against illicit financial activities. Book a free consultation with an expert today and plug into Latin America’s largest market!

Why CommerceGate?

CommerceGate is your payment adviser in Brazil. We specialize in providing local, robust, and secure payment solutions that support online businesses in Brazil and LATAM. Our services are designed to streamline consumer experience and increase your authorization rates, ensuring speed, security, and transparency.

With CommerceGate, your businesses benefit from:

  • Full access to Brazil’s most popular local payment methods, including Pix, Boleto Bancario, and local cards.
  • Customized payment solutions catering to operators in Brazil.
  • Dedicated Customer Success Managers to get your local solution to the other level of expertise.
  • Licensed operations to minimize disruptions, like account blocks.
  • Static Pix QR code for repeat payments and an increase of CLTV of up to 7%.

Contact CommerceGate today to learn more about how we can support your success in Brazil or book a free consultation here.

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[1] https://www.bcb.gov.br/en/financialstability/pixstatistics
[2] https://www.economist.com/the-americas/2024/01/04/why-is-brazil-a-hotspot-for-financial-crime
[3] https://valorinternational.globo.com/business/news/2023/12/27/brazil-has-second-highest-fraud-rate-in-world-visa-says.ghtml

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