Brazil's Central Bank Fines Banco Topázio $3.15M, Bans Crypto OTC FX Services for 2 Years

According to Times Brasil, Brazil’s Central Bank has fined Banco Topázio approximately $3.15 million and prohibited the institution from conducting over-the-counter foreign exchange services for virtual assets for the next two years. The penalty was issued following findings that Banco Topázio failed to conduct adequate customer due diligence, maintain proper customer records, and implement sufficient anti-money laundering and counter-terrorism financing controls while processing around $1.7 billion in related transactions between October 2020 and September 2021. The bank also failed to report suspicious transactions to Brazil’s Financial Intelligence Unit (Coaf). Central Bank officials indicated that similar restrictions may be applied to other institutions engaged in cryptocurrency operations.