What will change in the supervision of fintechs after the mega-operation against the PCC scheme?

The mega-operation Hidden Carbon , launched this Thursday 28th by the Federal Police in partnership with the Public Ministry of São Paulo, the Federal Revenue Service and other agencies, pointed to the use of fintechs to launder money from criminal organizations such as the Primeiro Comando da Capital, the PCC.

These companies use technology to offer financial services more simply and quickly than traditional banks. However, much of their operations remain outside the supervision of the Central Bank, which facilitates illegal activities.

The normative instruction governing information related to financial transactions sent to the tax authorities dates back to 2015. The Lula administration (Workers' Party) attempted to update it, putting fintechs on the authorities' radar, but had to backtrack after a wave of misinformation about an alleged Pix tax . For the Secretary General of the Revenue Service, Robinson Barreirinhas , organized crime benefited from the fake news .

PF investigations indicate that around 52 billion reais Criminal organizations have been operating through fintechs over the past four years. Among the targets of Thursday's operation are financial sector companies such as Reag Investimentos, which is listed on the São Paulo Stock Exchange, and BK Bank. More than 1,400 agents participated in the raid.

According to the IRS, the criminals exploited regulatory loopholes that prevented the flow of funds from being tracked and identified by regulatory agencies. One regulatory flaw is the "pocket account" opened in the fintech 's own name at a commercial bank through which its clients' funds flow—in a non-segregated manner.

In response, Finance Minister Fernando Haddad (PT) stated this Thursday that the Federal Revenue Service will classify fintechs as financial institutions, with the aim of including them in the legislation applied to traditional banks.

"Starting tomorrow, they will have to provide the same clarifications about financial transactions, and from then on, we will be able to unravel other money laundering schemes more quickly," he declared. The expectation is that this classification will occur through a normative instruction .

Carbono Oculto's scheme targets PCC money laundering through gas stations . The illicit funds were inserted into the financial system through fintechs , and the money was ultimately reinvested in businesses and properties through investment funds.

Some of the warrants were served at institutions on Avenida Faria Lima , in São Paulo, considered the center of the country's financial market.