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