BCB Resolution No. 119 — Amends Circular No. 3,978 of January 23, 2020, regarding internal policies, procedures, and controls for preventing money laundering and terrorist financing

BCB RESOLUTION NO. 119, OF JULY 27, 2021

Amends Circular No. 3,978, of January 23, 2020, which provides for the policies, procedures, and internal controls to be adopted by institutions authorized to operate by the Central Bank of Brazil, aiming to prevent the use of the financial system for the practice of the crimes of "money laundering" or concealment of assets, rights, and values, as provided for in Law No. 9,613, of March 3, 1998, and terrorist financing, provided for in Law No. 13,260, of March 16, 2016.

The Collegiate Board of the Central Bank of Brazil, in a session held on July 27, 2021, based on arts. 9 of Law No. 4,595, of December 31, 1964, 10, 11 and 11-A of Law No. 9,613, of March 3, 1998, 6 and 7, item III, of Law No. 11,795, of October 8, 2008, and 15 of Law No. 12,865, of October 9, 2013, and having in view the provisions of Law No. 13,260, of March 16, 2016, the Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, promulgated by Decree No. 154, of June 26, 1991, the United Nations Convention Against Transnational Organized Crime, promulgated by Decree No. 5,015, of March 12, 2004, the Inter-American Convention Against Terrorism, promulgated by Decree No. 5,639, of December 26, 2005, the International Convention for the Suppression of the Financing of Terrorism, promulgated by Decree No. 5,640, of December 26, 2005, and the United Nations Convention Against Corruption, promulgated by Decree No. 5,687, of January 31, 2006,

RESOLVES:

Art. 1º Circular No. 3,978, of January 23, 2020, shall enter into force with the following alterations:

"Art. 16. ...........................................................................................................

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§ 2º .................................................................................................................

I - the full name and the registration number in the Register of Natural Persons (CPF), in the case of a natural person; and

II - the trade name or corporate name and the registration number in the National Register of Legal Entities (CNPJ), in the case of a legal entity.

................................................................................................................" (NR)

"Art. 18.
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§ 1º The qualification procedures referred to in the caput must include the collection of information that allows:

I - to identify the place of residence, in the case of a natural person;

II - to identify the place of headquarters or branch, in the case of a legal entity; and

III - to evaluate the financial capacity of the client, including income, in the case of a natural person, or turnover, in the case of a legal entity.

................................................................................................................" (NR)

"Art. 24. ...........................................................................................................

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§ 3º The following are exempt from the provisions of the caput:

I - legal entities characterized as open companies;

II - non-profit entities;

III - cooperatives;

IV - funds and investment clubs registered with the Securities and Exchange Commission (CVM), provided that, cumulatively:

a) they are not exclusive funds;

b) they obtain resources from investors for the purpose of attributing the development and management of an investment portfolio to a qualified manager who must have full discretion in representation and decision-making before the invested entities, not being obliged to consult the unitholders for these decisions nor indicate the unitholders or parties related to them to act in the invested entities; and

c) the registration number in the CPF, in the case of a natural person, or the registration number in the CNPJ, in the case of a legal entity, of all unitholders is reported to the Special Secretariat of the Federal Revenue of Brazil (RFB), in the manner defined by it in specific regulation;

V - investment funds registered with the Securities and Exchange Commission (CVM), constituted in the form of a closed condominium, whose shares are traded in an organized market; and

VI - non-resident investors classified as:

a) governments, government entities and central banks, as well as sovereign funds or investment companies controlled by sovereign funds and similar;

b) multilateral organizations;

c) open companies or equivalents;

d) financial institutions or similar, operating on their own account;

e) portfolio managers, operating on their own account;

f) insurance companies and private pension entities; and

g) investment funds, provided that, cumulatively:

1. the number of unitholders is equal to or greater than one hundred and none of them holds more than 25% (twenty-five percent) of the shares; and

2. the administration of the asset portfolio is made in a discretionary manner by a professional administrator subject to the supervision of a supervisory authority with which the Central Bank of Brazil maintains an agreement for the exchange of information regarding the prevention of the use of the financial system for the practice of money laundering and terrorist financing crimes.

§ 4º In the case of the entities listed in § 3º, the collected information must cover that of the natural persons authorized to represent them, as well as that of their controllers, administrators or managers, and directors, if any." (NR)

"Art. 33. ...........................................................................................................

Sole Paragraph. In the operations referred to in the caput, carried out by a duly authorized and registered value transport company with the competent authority, in accordance with current legislation, this company is considered the bearer of the resources, which shall be identified through the registration of the CNPJ number and the trade name or corporate name." (NR)

Art. 2º This Resolution enters into force on September 1, 2021.

Otávio
Ribeiro Damaso
Director of Regulation