Brazil Ministry of Justice defines rules for recovering funds frozen from illegal betting operations

The Ministry of Justice defined, through Ordinance 1,287 published on Friday, the administrative process for the forfeiture of frozen assets ​​from illegal betting.

The National Secretariat of Public Security (Senasp) will be responsible for conducting the processes. It will initiate administrative processes after receiving documents forwarded by the Secretariat of Prizes and Betting (SPA). Once the administrative phase is completed, Senasp will forward the documents to the Attorney General’s Office for appropriate action.

It is estimated that more than BRL1 billion ($194.2 million) in blocked funds will be recovered.

After the conclusion of the administrative processes, the resources will be incorporated into the National Public Security Fund. The ordinance also establishes that, whenever possible, priority will be given to the allocation of these resources to mandatory transfers, in the fund-to-fund modality, to the states and the Federal District.

Return to society

According to the National Secretary of Public Security, Chico Lucas, the regulation creates conditions to transform resources linked to illegal activity into investments in the protection of the population.

“We are creating a pathway for money moved through illegal activities to return to society in the form of public safety,” said Lucas. “We are talking about a potential of over BRL1 billion which, once all administrative and judicial steps are completed, could strengthen the National Public Security Fund and expand investment capacity in the states and the Federal District.

“It’s an important logic: to remove resources from illegal activity and convert them into infrastructure, technology, and operational capacity for those who fight crime.”

According to Camila Pintarelli, director of management at the National Public Security Fund, the regulation ensures legal security for the procedure and creates conditions for the resources to return to society.

“With this decree, we are taking a concrete step towards transforming the harm caused by illegal betting into protection for society,” Pintarelli highlighted. “By creating a firm, transparent, and legally secure path to remove these assets from illegality, we are enabling resources previously associated with these harmful practices to be directly allocated to strengthening and structuring Brazilian public security, and returning to the population in the form of prevention, care and protection.”

Procedures

After receiving the documents forwarded by the Prizes and Betting Secretariat, the Directorate for Management of the National Public Security Fund (DGFNSP) will be responsible for:

– Promoting a preliminary analysis of the documentation received

– Initiating administrative processes

– Determining the necessary steps to be taken for the proper procedural instruction

– Coordinating the procedural instruction

– Issuing a first-instance administrative decision

– Promoting the communications foreseen in article 16 of Decree No. 13,033, of 19 June 2026

– Acting as a coordinating and institutional articulation unit of the Ministry of Justice and Public Security in matters related to the procedure for handling blocked assets

– Promoting, once the administrative phase is concluded, the forwarding of the case files to the Attorney General’s Office.

After this stage, the administrative process will be instructed by the Procedural Instruction Commission. It will be composed of at least three public servants. The Commission will be responsible for:

– Examining the documentation contained in the case file

– Promoting notification of the interested party

– Receiving and analysing the statements, documents, and evidence presented

– Promoting the production of evidence necessary for the investigation

– Proposing to the director of DGFNSP the carrying out of investigations and the request for information and documents

– Ensuring the right to reply regarding the elements incorporated into the case file

– Preparing a conclusive report and submitting the case file to the Director of DGFNSP for a decision

The administrative process guarantees the interested party full access to the proceedings. They will have 15 days to present their defence and documents. They will also have the right to produce evidence, call witnesses and request relevant investigations.

Upon completion of the Commission’s final report, the director of the DGFNSP will issue a reasoned administrative decision at the first instance.

With the administrative phase concluded and the decision to forfeit the blocked funds upheld, Senasp will forward the case files to the Attorney General’s Office.

Other detected illegal activities will be dealt with differently

The regulation also stipulates that any evidence of other illegal activities identified during the analysis of the cases must be reported to the competent authorities.

In cases related to potential criminal offences, the information will be forwarded to the Public Prosecutor’s Office and the police authorities. When there is evidence related to tax credits, the Federal Revenue Service and the Attorney General’s Office of the National Treasury will be notified.