Which sectors are most targeted by money laundering in Brazil?

In Brazil, criminals tend to favor sectors with high transaction volume, cash exposure, and weak traceability of funds. For PSPs, that means the risk picture is not just “banks versus everyone else”; it also includes real estate, luxury goods, and online betting, each with its own compliance headache.

1. The Brazilian Financial Activities Control Council, Coaf, classifies the most exposed sectors as “obligated persons” under Law 9.613/1998. The common thread across them is simple: lots of money moving around, transactions that can involve cash, and difficulty tracing the real source of funds.
2. Financial institutions see the highest number of cases. Banks, fintechs, and securities brokers are the most frequent targets because they handle the largest transfer volumes and offer the fastest route for making criminal proceeds look legitimate, according to compliance specialists. That is why this is also the most heavily regulated segment: banks and fintechs are expected to run identity verification at onboarding, monitor transactions continuously, and screen customers against restrictive lists and Politically Exposed Persons (PEP).
3. Real estate and luxury assets are another classic placement channel. Jewellery stores, precious metals dealers, and real estate companies are singled out by Coaf because high-value purchases — often made in cash — can turn illicit money into a stable asset such as a property or a piece of jewellery without immediate suspicion. The compliance catch here is that the transaction is usually one-off and large, so due diligence has to happen before the deal closes, not after the money is already gone.
4. Online betting is also on the radar, especially when criminals use third-party accounts to move illicit funds. The total amounts involved are usually smaller than in traditional finance or real estate, but the sector already has its own prevention rules, including monitoring betting patterns and reporting suspicious transactions to Coaf.
5. Thomas Hannickel, Compliance Director and DPO at Legitimuz, says the defense against money laundering follows the same basic logic across sectors: verification, monitoring, and reporting. In practice, the sector changes the mechanics; the compliance burden does not disappear.