Brasilia, Thursday, September 19, 2024 – Brazil’s Federal Revenue Service has successfully implemented an in-house artificial intelligence (AI) tool to identify money laundering and tax evasion schemes involving cryptocurrency. The tax watchdog reported the tool has already uncovered over $180 million in illicit transactions linked to crypto-related crimes.
The AI tool, developed internally, utilizes advanced algorithms and network analysis to examine tax data, detect irregularities, and improve investigation productivity. Two notable cases were highlighted where the AI identified illegal activities.
A reports said that in one case, more than $125 million was moved through shell companies to purchase cryptocurrencies, revealing tax irregularities and potential criminal activities. In another case, the tool detected a money laundering operation tied to drugs and arms trafficking, involving cryptocurrency tax evasion.
Brazil’s government continues to explore AI-driven solutions for financial oversight. The Central Bank of Brazil is also studying the application of AI in its Central Bank Digital Currency (CBDC) pilot, creating a specialized AI division for this purpose.
