December 16, 2025

LGPD-Aligned ID Scanning Technology: How Does It Guarantee Brazilian Regulatory Compliance

Before businesses enter a new region, they must carefully review local legislation and, in particular, the regulations governing the processing of personal data. In recent years, following the European General Data Protection Regulation (GDPR), enacted in 2018, data processing rules have become markedly stricter, and ignoring them can lead to substantial fines and other sanctions, including a prohibition on operating in the country.

The tricky thing about these regulations is that they can usually seem irrelevant to a company – however, that impression lasts only until the first data breach or unauthorised access to customer records, which often occur unexpectedly. If a company wants to protect itself from multi-million dollar penalties, it should carefully reassess whether its customer identification system is compliant. This applies both to companies entering a new market and to those already operating there, as legislative changes are frequent – a KYC system that was compliant yesterday may no longer be compliant today.

In this text, we take a closer look at the General Personal Data Protection Act (LGPD) – the Brazilian law regulating data storage and processing. We also outline our cutting-edge ID scanning technology that can ensure a secure and LGPD-aligned KYC procedure across companies’ websites and apps.

What Companies Need to Know about Brazil’s LGPD?

LGPD is Brazil’s data protection law, which regulates the collection, processing, storage, and transfer of personal information. The law entered into force in 2020 and shares much with the European GDPR, including extraterritorial reach. This extends its applicability to companies (regardless of their location) that process the personal data of individuals in Brazil. The LGPD is enforced by the National Data Protection Authority (ANPD) – the designated regulator responsible for overseeing compliance and applying sanctions.

Similar to the EU's GDPR, Brazilian data protection law provides users with the rights to request access to their data, correct, and delete it, as well as to object to its processing at any time. Data collection always requires the user’s explicit consent and must adhere to the principles of minimization and transparency. In case of a data breach or loss, companies must promptly notify the ANPD. Moreover, the law is amended almost annually, so more and more data processing standards are added every year.

The Brazil LGPD sanctions can include a penalty up to 2% of the company's gross revenue in Brazil, daily fines that can reach around $10 million in total, public disclosure of the violation, and various data-related restrictions like blocking, deleting, or suspending data processing activities.

How Can Our ID Scanning Technology Guarantee LGPD Compliance?

A logical response to stringent regulations is OCR ID-scan – our advanced technology for on-device KYC that is already in use by banks, fintech platforms, telecom operators, government agencies, and many other clients all over the world. The ID scanning technology can perform real-time verification (KYC procedure) by any identity document of 4 000+ templates in 100+ languages, including Portuguese, Brazil’s official language.

At the same time, OCR ID-scan delivers several document authenticity checks – for instance, it automatically cross-validates data from the VIZ, MRZ, and the NFC chip, commonly used in biometric passports and other eIDs. The information on this chip is protected by a cryptographic signature, which assures that it was released by the legitimate authority and has not been altered since production. ID scanning technology is also equipped with a face-comparison module, which examines the photo in the document and compares it to the user’s selfie in order to prevent impersonation.

The solution works completely on the end-user’s device whether it is a mobile phone, a desktop, or a tablet. None of the personal information is stored, nor is it transmitted to the cloud or external servers – our ultra-lightweight neural network allows all computations to run directly on any modern mobile device’s CPU. Furthermore, customers do not even need an internet connection to recognize their ID documents – to verify this, you can install our free demo app and try all mentioned features with airplane mode on.

The ID scanning technology of this kind may also increase page-level conversion and lower abandonment rates for some platforms, as users no longer have to worry about the safety of their data. Quick and simple verification that can be performed offline does not deter customers unlike dubious KYC systems that transmit information off-device to unknown destinations or hand over sensitive data to operators – or, worse, to crowdsourcing platforms.

Most importantly, OCR ID-scan is compliant with the LGPD and even more stringent regulations elsewhere, because it neither stores nor transmits personal data by default, eliminating transfer-related leakage risk. Our Brazil LGPD-compliant solution integrates seamlessly with any existing system and can be deployed in the company's applications on desktop, tablet, and mobile, as well as directly in the browser via the WebAssembly (Wasm) technology.

LGPD-aligned ID Scanning for KYC by OCR Studio

OCR Studio develops powerful and secure ID and passport scanning solutions designed to help meet data-processing regulations. Our advanced OCR technologies can detect presentation attacks and other fraudulent document use while ensuring full alignment with Brazil's LGPD requirements.

LGPD-aligned OCR ID-scan for KYC procedures helps to avoid breaches of client data and resulting large fines. Find out more about the technology here.