Banco Topazio received a two-year ban from foreign cryptocurrency trading operations and a $3.2 million fine due to compliance irregularities. Between October 2020 and September 2021, the bank executed cryptocurrency purchases without procedures to determine the qualification of third parties benefiting from the operations. Trading volume reached $1.7 billion and involved 15 legal entities, with failures to notify atypical operations. The fine covered deficiencies in determining customers’ financial capacity, registration procedures, and AML/CFT risk identification. These transactions represented 63% of foreign exchange volume and 46% of market operations. The Central Bank found the irregularities serious enough to threaten the purpose and continuity of activities in Brazil’s financial and payment systems.
"The committee determined that Banco Topazio disregarded compliance measures between October 2020 and September 2021, when it executed cryptocurrency purchases without executing procedures to determine the qualification of the third parties benefiting from these operations. Banco Topazio's trading volume during that period reached $1.7 billion involving 15 legal entities without notifying of atypical operations."
"Topazio was fined $3.2 million for irregularities in determining customers' financial capacities, deficiencies in its registration procedures, and failure in determining AML/CFT (Anti-Money Laundering and Terrorist Financing) risks. These transactions accounted for 63% of Topazio's foreign exchange volumes during the period, and 46% of the institution's market operations."
"This led the reviewing committee to determine that the irregularities were of a serious nature, which, according to the law, could severely affect the purpose and continuity of activities or operations within the National Financial System, the Consortium System or the Brazilian Payment System."
"Ailton Aiquino, head of oversight at the central bank, hinted that these same prohibitions could be applied against other institutions as a precautionary measure if the bank considers them in violation of"
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