Payments
COAF fines five high-value goods firms R$6.4m for AML failures
[Brazil](https://www.gov.br/coaf/pt-br/assuntos/noticias/ultimas-noticias/coaf-examina-5-processos-na-sessao-de-julgamento-de-abril)'s Financial Activities Control Council (COAF) published on 7 May 2026 the outcomes of five Administrative S
2026-05-13 · 2 min
Brazilhttps://www.gov.br/coaf/pt-br/assuntos/noticias/ultimas-noticias/coaf-examina-5-processos-na-sessao-de-julgamento-de-abril's Financial Activities Control Council COAF published on 7 May 2026 the outcomes of five Administrative Sanctioning Processes concluded at its 97th Judging Session on 14 April 2026, imposing monetary penalties totalling R$6,414,450 for AML/CFT control failures.
The proceedings were brought against companies in the luxury and high-value goods sector and in the trade of jewellery, stones and precious metals — segments COAF supervises directly under Article 9 of Law 9,613/1998, which covers obligated entities for which no sectoral regulator exists.
The five sanctioned entities are Felice Automóveis Ltda., Alvorada Motocicletas Ltda., Localiza Rent a Car S.A., Gucci Brasil Importação e Exportação Ltda. and Dolce & Gabbana do Brasil Comércio, Importação e Participações Ltda.
The infractions set out in the COAF notice spanned failures to identify clients and maintain updated customer records, failures to retain records of operations, failure to register with the competent regulator, failure to comply with COAF information requests in the prescribed form, failure to report cash transactions exceeding fixed thresholds, failure to report transactions constituting serious indications of money laundering or terrorism financing, and deficiencies in AML/CFT/CPF policies, procedures and internal controls.
The instrument is a set of concluded Administrative Sanctioning Processes, not a consent order or court decree. COAF did not specify an appeal window or effective date for the sanctions in the 7 May notice.
Operational read
Entities directly supervised by COAF in the luxury, high-value goods and jewellery or precious metals segments should audit controls against the failure modes cited. The five named firms are parties to the concluded cases, but the control themes apply to the broader population within COAF's Article 9 remit — the notice has not disclosed the total population size of directly supervised entities in these segments.
Priority checks: registration status with the competent supervisor; client identification and ongoing KYC documentation; completeness of operations records; capture and reporting of cash transactions above fixed thresholds; suspicious transaction escalation workflows; and the form and conditions prescribed for responses to COAF information requests. Board-approved AML/CFT/CPF policies should be refreshed where gaps map to the listed infractions.
What to watch next
Whether COAF continues to publish monthly Judging Session outcomes emphasising recordkeeping, registration status and cash threshold reporting in these sectors. The 7 May notice does not provide case-specific appeal information.