BRAZIL: ILLICIT CASH COURIERS

UNCLAS BRASILIA 002188 SIPDIS EEB/ESC/TFS FOR JAY JALLORINA SIPDIS SENSITIVE E.O. 12958: N/A TAGS: EEB INL ECON KTFN PTER EETC PREL BR SUBJECT: BRAZIL: ILLICIT CASH COURIERS REF: A. SECSTATE 152088, B. SECSTATE 138204 ¶C. SECSTATE 16120 ¶1. On November 19, 2007 Econoff met with an advisor to the Council for Financial Activities Control (COAF) in Brasilia. COAF has actively worked with Customs to discourage illegal transportation of funds domestically and internationally. Brazilian regulations allow up to Reais $10,000 (approximately USD $5,000) to be carried undeclared on international flights; above that amount, Custom officials should be notified with an explanation provided by the passenger. COAF has partnered with Customs in creating a data base called the Electronic Declaration of Cash Carriage (EDPV),which will assist in monitoring individuals who transfer funds abroad. Although the system is a prototype and is still being tested, Brazilian law enforcement officials are encouraged by initial results. ¶2. In Brazil, the laws that govern individuals with financial transit crimes remain tenuous at best and tend to be on case-by-case bases. The funds are generally seized and held for 48 hours in order to provide time for an investigation. The COAF adviser admits that there is still much work to be done in Brazil to counter illicit cash couriers, however, currently there is a bill before the Minister of Justice for approval which will increase training and the budget to counter such illicit cash/drug smuggling regimes in Brazil. The GOB understands the connection between the cash couriers and terrorism, and has therefore undertaken the necessary steps to receive guidance from the Financial Action of South American (GAFICUD) and the Financial Action Task Force (FATF). SOBEL