Regulatory Alerts2020-06-03 | Circular 4022Circular No. 4022 — Procedures for Authorization and Cancellation of Debit Authorizations in Prepaid Payment Accounts
The Central Bank of Brazil issued Circular No. 4022 to establish standardized procedures for the authorization and cancellation of debit mandates in prepaid payment accounts. The regulation mandates that debit authorizations require specific written or electronic consent, defines strict communication protocols between depositary and recipient institutions, and guarantees account holders the right to cancel such authorizations. It further imposes record-keeping obligations, requires the designation of a compliance director, and sets the effective date for these rules as November 3, 2020.
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