By Marcela Ayres BRASILIA (Reuters) -Brazil’s central bank on Friday announced new measures approved by its board to strengthen the security of the country’s financial system, following recent cyberattacks on financial institutions. Effective immediately, payment institutions not authorized by the central bank and connected to the National Financial System Network via IT service providers will […]
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Brazil’s central bank enhances security of the financial system
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By Marcela Ayres
BRASILIA (Reuters) -Brazil’s central bank on Friday announced new measures approved by its board to strengthen the security of the country’s financial system, following recent cyberattacks on financial institutions.
Effective immediately, payment institutions not authorized by the central bank and connected to the National Financial System Network via IT service providers will face a 15,000 reais ($2,766.92) cap on digital cash transfers.
Central bank Governor Gabriel Galipolo said the cap was set because 99% of corporate transactions via the Pix instant payment system or TED bank transfers fall below that threshold.
“By limiting the transfer amount, you force attackers to carry out a larger number of operations,” Galipolo told reporters at a press conference, adding that cyberattacks typically involve large, one-off transactions.
He said the measures target organized crime, not financial institutions.
Under the new rules, no payment institution will be allowed to operate without prior authorization from the central bank. The deadline for unauthorized firms to apply for a license has also been moved up to May 2026 from December 2029.
Galipolo said more measures would be announced “soon.”
Also speaking at the press conference, central bank regulation director Gilneu Vivan said cryptoasset regulation would also be issued later this year, following a legal framework approved by Congress in 2022 that has yet to be implemented.
The central bank has previously voiced concern over the growing use of stablecoins in Brazil, often linked to illicit financial activity.
Asked about the central bank’s decision earlier this week to block the acquisition of mid-sized lender Master by peer BRB, Galipolo said he could not comment due to confidentiality rules protecting institutional information.
He emphasized, however, that all central bank decisions are made collectively and based on technical criteria.
“There is no risk to Brazil’s banking system,” he added. “The system is sound from a stability standpoint. There is no threat whatsoever.”
U.S. SANCTIONS
Following U.S. sanctions against Supreme Court Justice Alexandre de Moraes under the Magnitsky Act, Galipolo on Friday said the reasons for the penalty appeared “unusual,” but noted that the central bank has been monitoring and maintaining dialogue with the financial system on the matter.
Washington sanctioned Moraes in late July, accusing him of authorizing arbitrary arrests and curbing free speech. Moraes oversees the case in which former President Jair Bolsonaro is accused of plotting a coup after losing the 2022 election.
The sanctions freeze Moraes’ assets in the United States and bar U.S. companies from doing business with him, raising questions over potential spillovers for Brazilian banks with U.S. operations.
($1 = 5.4212 reais)
(Reporting by Marcela Ayres; Editing by Aida Pelaez-Fernandez, Natalia Siniawski, Marguerita Choy and Nick Zieminski)