TITLE: Brazil's Ministry of Finance Establishes Joint Liability for Banks in Illegal Betting Cases
BODY:
On June 17, 2026, Brazil's Ministry of Finance published Decree MF No. 1.766, establishing joint liability for financial institutions, payment companies, and advertisers involved in facilitating transactions related to unauthorised fixed-odds betting operators. Minister Dario Durigan signed the decree, which regulates provisions of Complementary Law No. 224 and Decree No. 12.808, both from 2025.
The decree imposes joint liability on financial institutions and payment arrangement providers for taxes owed by irregular betting operators after formal notification from the Ministry of Finance. Financial institutions will have 24 hours to block transactions and adopt restrictive measures following notification from the Secretariat of Prizes and Bets and the Special Secretariat of the Federal Revenue of Brazil. Failure to comply within this timeframe results in joint liability for outstanding taxes. Advertisers disseminating promotional material for unauthorised operators face immediate joint liability without requiring prior notification from the ministry. The notification to financial institutions will identify the unauthorised operator by company name and National Register of Legal Entities (CNPJ) registration number, detailing financial transactions identified in favour of the irregular operator and the financial institution holding the receiving account. Tax liability will be formalised through administrative tax procedures, with those held liable guaranteed due process and full defence rights under applicable tax legislation. The measure applies to both the operation of fixed-odds betting and receipt of net prizes arising from such bets. The decree is based on Article 87, sole paragraph, item II, of the Federal Constitution, alongside Article 6 of Complementary Law No. 224 and Article 17 of Decree No. 12.808.
Financial institutions, payment companies, and advertisers must ensure compliance with blocking requirements and advertising restrictions to avoid joint tax liability exposure.