{ "jurisdiction_id": "LATAM", "jurisdiction": "Latin America", "url": "https://payments.gi/jurisdictions/latin-america/", "generator": "render_jid v13.3.0", "date_modified": "2026-08-11", "schema_version": "world-payments-v1", "counts": { "modules": 14, "sourced_findings": 66, "source_register": 99 }, "modules": [ { "code": "W1a", "name": "Licensing, Authorisation & Market Access", "confidence": "Confirmed", "moved_this_cycle": true, "url": "https://payments.gi/jurisdictions/latin-america/#w1a-licensing-authorisation-market-access", "standing_position": "LATAM payments licensing is anchored by Brazil's BCB-administered PI/VASP dual perimeter and Mexico's 2018 Fintech Law (IFPE/IFC). Brazil has now extended full central-bank authorization to virtual-asset service providers (SPSAVs) via Resolutions 519/520/521, effective February 2, 2026, closing the region's largest previously-unlicensed payments-adjacent perimeter. Mexico's Fintech Law open-finance mandate (Art. 76) remains only partially implemented pending CNBV/Banxico secondary rules.", "findings": [ { "finding": null, "instrument_type": "law+regulation", "source": "Law No. 12.865/2013 (Brazil payments) — Planalto/BCB", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "BCB Resolution #495/2025 and Resolution #80 (BCB official)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "World Bank FPS Brazil/Pix case study", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "law", "source": "Ley para Regular las ITF (Fintech Law) — CNBV (gob.mx)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Fintech Law (ITF/IFPE authorisation) — CNBV (gob.mx)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "market-data", "source": "Mexico Business News", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W1b", "name": "Conduct, Safeguarding & Financial Promotions", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w1b-conduct-safeguarding-financial-promotions", "standing_position": "Member-state conduct/safeguarding regimes attach to the licence. In Brazil, PIs may freely move balances customers hold on prepaid payment accounts and fund their settlement (PI) accounts at the BCB, with consumer-protection/transparency rules applying; the full legal recognition of asset-segregation for some virtual-asset operations awaits congressional approval. Mexico updated its transparency and financial-consumer-protection laws to cover IFCs and IFPEs, including digital onboarding.", "findings": [ { "finding": null, "instrument_type": "regulation", "source": "World Bank FPS Brazil/Pix case study", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Banco Central do Brasil (BCB) — official communications", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Lexology (digital markets, funding and payment services in Mexico)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "BCB Normative Resolution No. 491 (BCB official)", "source_url": null, "source_tier": "1", "retrieved_at": null } ] }, { "code": "W2", "name": "Stablecoins & Digital Money", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w2-stablecoins-digital-money", "standing_position": "Brazil is LATAM's most advanced stablecoin/VASP regime (Res. 519/520/521 eff. 2 Feb 2026; full fiat/public-debt backing; algorithmic prohibition; FX integration). Res. 561 (May 2026) imposes a partial ban on stablecoins as eFX backend settlement from Oct 2026. Mexico restricts virtual-asset use to internal IFPE/bank transactions (no stablecoin-issuance regime in force).", "findings": [ { "finding": null, "instrument_type": "regulation", "source": "BCB Resolutions 519/520/521 (bcb.gov.br) — VASP framework", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "BCB Resolutions 519/520/521 (bcb.gov.br)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "BCB Resolution 521 (bcb.gov.br) — virtual-asset FX operations", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "law", "source": "BCB Resolution 520 (bcb.gov.br) — Travel Rule / AML", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Fintech Law — virtual-asset provisions; CNBV/Banxico (gob.mx)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Mondaq / KLA Law", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W3", "name": "Operational Resilience & Critical Infrastructure", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w3-operational-resilience-critical-infrastructure", "standing_position": "C&M Software (30 Jun 2025, ~R$800m–>R$1bn) and Sinqia (Aug 2025, ~R$710m) Pix-rail breaches exposed PSTIs as a systemic single point of failure; BCB/CMN cyber resolutions in force 18 Dec 2025, full compliance 1 Mar 2026.", "findings": [ { "finding": null, "instrument_type": "incident", "source": "AInvest / Access-Shield technical analysis", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "incident", "source": "Global Government Fintech", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Baker McKenzie Connect On Tech", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Global Government Fintech", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W4", "name": "Scheme & Network Compliance", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w4-scheme-network-compliance", "standing_position": "Brazil is the LATAM benchmark for card-scheme/interchange regulation: the BCB has capped debit interchange at 0.5% weighted-average / 0.8% maximum (from Oct 2018) and, from April 2023, brought prepaid cards into scope with a 0.7% cap while harmonising prepaid settlement to debit-card cycles. Pix sits outside interchange regulation — P2P is free under the Pix rulebook, P2B/B2B carry only low fees, and participants may not charge each other — making average Pix cost (~0.33%) far below debit (~1.13%) and credit (~2.34%).", "findings": [ { "finding": null, "instrument_type": "regulation", "source": "Latin American Journal of Central Banking (ScienceDirect)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "VIXIO / PYMNTS", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "rulebook", "source": "ScienceDirect (Pix/Drex study)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "analysis", "source": "BIS Bulletin No 52 / ScienceDirect", "source_url": null, "source_tier": "1", "retrieved_at": null } ] }, { "code": "W5", "name": "Payment Corridor Dynamics", "confidence": "Confirmed", "moved_this_cycle": true, "url": "https://payments.gi/jurisdictions/latin-america/#w5-payment-corridor-dynamics", "standing_position": "US-MX corridor in transition: MX received US$61.79bn 2025 (-4.6%, first decline in a decade), continuing into Jan 2026; US 1% remittance excise tax from Jan 2026; LATAM correspondent activity ~30% lower over the prior decade.", "findings": [ { "finding": null, "instrument_type": "market-data", "source": "PaymentExpert (IDB year-end estimates)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-data", "source": "PaymentExpert (Banxico data)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "tax-measure", "source": "PaymentExpert (US IRS)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-data", "source": "Inter-American Dialogue", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "infrastructure", "source": "Thunes", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W6", "name": "Industry Structure & Commercial Dynamics", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w6-industry-structure-commercial-dynamics", "standing_position": "LATAM's PSP market is led by Brazilian acquirers and a cohort of large neobanks/wallets. Brazil's acquiring is concentrated among Cielo, Rede (Itaú), Getnet, plus challengers Stone and PagSeguro, with intense price/receivables-advance competition. In Mexico, Mercado Pago is the profit leader (US$602m Q3-2025 fintech profit) alongside Nubank, Spin by Oxxo's 24,000+ store footprint, and incumbents BBVA México and Hey Banco; Mexico now hosts 1,100+ fintechs, second in LATAM.", "findings": [ { "finding": null, "instrument_type": "market-data", "source": "Statista / iupana", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-event", "source": "Brazil Journal", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-data", "source": "Legal Paradox (Mexican neobanks 2026)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-data", "source": "Miranda Intelligence (El Universal/EFE)", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W7", "name": "Legal & Litigation", "confidence": "Assessed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w7-legal-litigation", "standing_position": "The dominant live legal matter is the criminal/enforcement fallout from the 2025 Pix-rail breaches: Brazil's Federal Police, activated by the BCB, opened a formal investigation into the C&M Software attack (criminal conspiracy, fraud-related theft, unauthorised intrusion, money laundering), arresting an insider who sold credentials. A parallel international trade dispute is emerging around Pix following US (USTR/WhatsApp/Meta) competition complaints over Brazil's digital-payment infrastructure.", "findings": [ { "finding": null, "instrument_type": "enforcement", "source": "Access-Shield technical analysis", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "enforcement", "source": "CyberInsider", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "trade-dispute", "source": "CITP (Cambridge)", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W8", "name": "Merchant Acquiring & Risk", "confidence": "Assessed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w8-merchant-acquiring-risk", "standing_position": "Brazilian acquiring is structurally distinct: chargeback liability is merchant-side on cards, while push-payment rails (Pix, Boleto) carry effectively zero chargeback exposure because they are CPF/CNPJ-anchored push rails. Receivables-advance (anticipation) economics are central to acquirer revenue, reshaped by BCB's 2021 receivables-registration regime (CERC, B3 as registration entities) that opened the market to new entrants. Card disputes have no consumer-redress equivalent to Pix's MED; instead they run through scheme chargeback flows.", "findings": [ { "finding": null, "instrument_type": "market-practice", "source": "iGaming Payment Solutions (PagSeguro review)", "source_url": null, "source_tier": "4", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "TechCrunch", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-practice", "source": "PortersFiveForce (StoneCo) / Brazil Journal", "source_url": null, "source_tier": "4", "retrieved_at": null } ] }, { "code": "W9", "name": "Product Innovation & Market Development", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w9-product-innovation-market-development", "standing_position": "LATAM is a global testbed for central-bank-led instant rails and open finance. Brazil's Pix (launched Nov 2020, BCB-operated) reaches ~90% of the population with up to ~290m transactions/day, and is extending to Pix Automático (recurring payments, early 2026) and Open Finance/PISP participation. Colombia launched Bre-B, its interoperable instant-payments ecosystem, on 6 Oct 2025 with 227 participating institutions, designed by Banco de la República via the CIPI governance committee. Mexico runs CoDi/DiMo and a Banxico-led open-banking rule set; a regulatory sandbox exists under the Fintech Law.", "findings": [ { "finding": null, "instrument_type": "infrastructure", "source": "CITP (Cambridge)", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "infrastructure", "source": "Banco de la República (BanRep blog)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "infrastructure", "source": "Banco de la República", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "product", "source": "BCB press detail / Boku-Paypers", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Chambers / Legal 500 Mexico", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W10", "name": "Consumer Protection & APP Fraud", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w10-consumer-protection-app-fraud", "standing_position": "Brazil's flagship consumer-protection instrument is the Pix Special Return Mechanism (MED), a BCB-mandated refund channel for fraud/scam/operational-failure cases (created 2021). On user trigger, funds are blocked at the receiving institution and both banks have ~7 days to review, with refunds within ~11 days; claims can be filed up to 80 days after the transfer. BCB Resolution 589 required self-service in-app MED for all Pix participants by Oct 2025, and BCB Resolution 493 added in-app appeals plus multi-layer fund tracing (MED 2.0, ~Feb 2026 across up to five account layers). A structural limitation: only ~9% of 2023 requests were refunded, mostly due to insufficient funds.", "findings": [ { "finding": null, "instrument_type": "regulation", "source": "VIXIO", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "QED Investors", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "regulation", "source": "Demarest / CPG", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "market-data", "source": "CommerceGate", "source_url": null, "source_tier": "3", "retrieved_at": null } ] }, { "code": "W11", "name": "AML/CFT & Financial Crime", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w11-aml-cft-financial-crime", "standing_position": "sentinel. Carrying Sentinel.gi position only (no original FIM analysis). LATAM's payments AML/CFT posture is anchored in the GAFILAT/FATF framework: Brazil's 2023 FATF/GAFILAT MER found BCB to be the key, effective risk-based supervisor for the most material institutions while other supervisors lag; the 2022 Virtual Assets Law positioned the BCB as the AML/CFT authority for crypto, with Res. 520/2025 extending AML/CFT and Travel Rule obligations to VASPs. Mexico (whose 2018 MER placed it in enhanced follow-up) has been re-rated on technical-compliance deficiencies, with SHCP leading AML/CFT regulation.", "findings": [ { "finding": null, "instrument_type": "evaluation", "source": "FATF (Mexico country page)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": "GAFILAT (FATF-style regional body) coordinates AML/CFT/CPF standards across ~17 member states with sharply uneven implementation. Bolivia, Haiti and Venezuela remain on the FATF grey list; Panama, Jamaica and others exited the EU/FATF lists 2023-2025. Brazil and Argentina are advancing crypto-asset and BO reforms; Venezuela shows state-linked TF/NPO-oversight and BO deficiencies.", "instrument_type": "assessment", "source": "FIM (sentinel.gi) per-JID baseline profile — Latin America (regional bloc — LATAM)", "source_url": null, "source_tier": null, "retrieved_at": null }, { "finding": "Brazil VASP (SPSAV) full authorization licensing deadline", "instrument_type": "regulatory_horizon", "source": "FIM (sentinel.gi) regulatory_horizon_register (issue FIM-BASE-HRZ-001)", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": "Gap: sourcing-thinness", "instrument_type": "gap", "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-005)", "source_url": null, "source_tier": null, "retrieved_at": null }, { "finding": "Enforcement: OFAC — Two Brazilian nationals and four companies (Primeiro Comando da Capital, PCC)", "instrument_type": "enforcement_action", "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-006)", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": "Enforcement: OFAC — Mexican citizens and companies (nine entities) linked to cartel fuel-smuggling scheme", "instrument_type": "enforcement_action", "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-005)", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": "Sanctions: OFSI divergence", "instrument_type": "sanctions_change", "source": "FIM (sentinel.gi) sanctions_change_register (issue FIM-BASE-SANC-004)", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": "Gap: regulatory-failure", "instrument_type": "gap", "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-001)", "source_url": null, "source_tier": null, "retrieved_at": null }, { "finding": "Gap: legal-gap", "instrument_type": "gap", "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-002)", "source_url": null, "source_tier": null, "retrieved_at": null } ] }, { "code": "W12", "name": "Correspondent Banking, Settlement & Access", "confidence": "Confirmed", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w12-correspondent-banking-settlement-access", "standing_position": "LATAM has been among the regions hardest hit by correspondent-banking de-risking — BIS data show roughly a 30% decline in active correspondent activity in Latin America over the prior decade, with smaller/Caribbean jurisdictions worst affected. The Jan/Feb-2025 US designation of eight transnational criminal organisations as FTOs/SDGTs (most operating across Mexico and LATAM) raises fresh civil/criminal exposure for US banks holding Latin American correspondent accounts, risking renewed de-risking pressure. Settlement access at member-state level runs through central-bank systems (e.g. Brazil's STR/SPI with BCB liquidity windows).", "findings": [ { "finding": null, "instrument_type": "analysis", "source": "Covington (citing BIS Quarterly Review March 2020)", "source_url": null, "source_tier": "2", "retrieved_at": null }, { "finding": null, "instrument_type": "policy-risk", "source": "Covington & Burling", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": "analysis", "source": "FSB Correspondent Banking Data Report / World Bank", "source_url": null, "source_tier": "1", "retrieved_at": null }, { "finding": null, "instrument_type": "infrastructure", "source": "World Bank FPS Brazil/Pix case study", "source_url": null, "source_tier": "1", "retrieved_at": null } ] }, { "code": "W13", "name": "Commercial Intelligence & Fintech", "confidence": "High", "moved_this_cycle": false, "url": "https://payments.gi/jurisdictions/latin-america/#w13-commercial-intelligence-fintech", "standing_position": "LATAM fintech funding rebounded in 2025 (Q3: US$572m/40 deals, +82% YoY), led by Mexico (Plata to US$3.1bn, Klar Series C + Bineo). Strategic consolidation and big-tech entry (Amazon-Rappi) rising.", "findings": [ { "finding": null, "instrument_type": null, "source": "FinTech Global", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": null, "source": "Crunchbase News", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": null, "source": "Crunchbase News", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": null, "source": "Legal Paradox", "source_url": null, "source_tier": "3", "retrieved_at": null }, { "finding": null, "instrument_type": null, "source": "Miranda Intelligence", "source_url": null, "source_tier": "3", "retrieved_at": null } ] } ] }