BCB Resolution No. 25 — Amends Circular No. 3,681 of November 4, 2013, regarding risk management, minimum capital requirements, governance of payment institutions, preservation of value and liquidity of payment account balances, and other provisions

Resolution No. 25

BCB RESOLUTION
NO. 25, OF OCTOBER 22, 2020

Amends Circular No. 3,681, of November 4, 2013, which provides for risk management, minimum capital requirements, governance of payment institutions, preservation of value and liquidity of payment account balances, and gives other provisions.

The
Coordinating Board of the Central Bank of Brazil, in a session held on October 20, 2020, based on arts. 6, §§ 1 and 2, 9, item IX, 14 and 15 of Law No. 12,865, of October 9, 2013, and in view of art. 14 of Resolution No. 4,282 of November 4, 2013,

R E S O L V E:

Art.
1º Circular No. 3,681, of November 4, 2013, shall enter into force with the following changes:

“Art. 1º ............................................................................................................

§ 1º The provisions of this Circular regarding the calculation of minimum capital requirements shall not apply to payment institutions that are part of a prudential conglomerate formed from control exercised by a financial institution or by another institution authorized to operate by the Central Bank of Brazil subject to Law No. 4,595, of December 31, 1964.

§ 2º Financial institutions and other institutions authorized to operate by the Central Bank of Brazil subject to Law No. 4,595, of 1964, that provide payment services must implement, for their payment activities, the risk management structure established in arts. 2º to 7º of this Circular, in a complementary manner:

I - to the risk management structure referred to in Resolution No. 4,557, of February 23, 2017, for institutions classified in Segment 1 (S1), Segment 2 (S2), Segment 3 (S3) or Segment 4 (S4), in accordance with Resolution No. 4,553, of January 30, 2017; and

II - to the simplified risk management structure referred to in Resolution No. 4,606, of October 19, 2017, for an institution classified in Segment 5 (S5), in accordance with Resolution No. 4,553, of 2017.” (NR)

“Art. 2º ............................................................................................................

I - ......................................................................................................................

.........................................................................................................................

j) failures in information technology systems, processes or infrastructure;

k) failures in execution, compliance with deadlines and management of activities involved in payment arrangements; and

l) failures in the initiation of payment transactions;

.........................................................................................................................

III - ....................................................................................................................

.........................................................................................................................

b) of the issuer vis-à-vis the acquirer of the payment instrument; and

................................................................................................................” (NR)

“Art. 3º ............................................................................................................

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§ 3º For the payment institution that exclusively provides the payment transaction initiation service, the structure referred to in the caput is exempt from managing credit risk and liquidity risk.” (NR)

“Art. 4º ............................................................................................................

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XVII - decision criteria regarding the outsourcing of services and selection of their providers;

XVIII - assessment, management and monitoring of operational risk arising from outsourced services relevant to the regular functioning of the payment institution, including the activities performed by sub-acquirers involved in the settlement of payment transactions of acquiring institutions; and

XIX - mechanisms for monitoring and controlling failures in the initiation of payment transactions, segregating, at a minimum, the following events:

a) unauthorized initiation of payment transaction;

b) non-execution of initiation of payment transaction;

c) incorrect execution of initiation of payment transaction; and

d) delay in the initiation of payment transaction.

................................................................................................................” (NR)

“Art. 7º ............................................................................................................

.........................................................................................................................

II - procedures aimed at identifying, assessing, monitoring and controlling exposure to credit risk;

III - procedures for the recovery of credits; and

IV - criteria and procedures, clearly defined and documented, for the analysis of credit risk in the issuance of post-paid payment instruments.” (NR)

“Art.
10-A. Payment transaction initiating institutions must maintain, permanently, adjusted net equity by income statement accounts at a value corresponding, at a minimum, to the following percentages of the average monthly value of the payment transactions initiated by the institution in the last 12 (twelve) months:

I

• 1% (one percent) from November 3, 2020 to December 31, 2022;

II

• 1.25% (one and twenty-five hundredths percent) from January 1, 2023 to December 31,
  2024; and

III

• 1.5% (one and five tenths percent) from January 1, 2025 onwards.”
  (NR)

“Art.
11. Payment institutions must use the
projections presented in their respective business plans while the value of the payment transactions or the balance of the electronic currencies they have issued referred to in arts. 9º, 10 and 10-A is not available.” (NR)

“Art.
12. ............................................................................................................

.........................................................................................................................

§
1º The resources calculated in accordance with the caput must be allocated exclusively to:

I

• cash, via credit transfer to its Correspondent Account for Electronic Currency (CCME) at the Central Bank of Brazil, based on the daily position registered at the close of the regular operations grid of participants in the Reserve Transfer System (STR), before the start of the additional window for contributions to the Instantaneous Payment Account (Conta PI), as provided for in the STR Regulation, annex to Circular No. 3,100, of March 28, 2002; or

II

• federal public securities, registered in the Special Settlement and Custody System (Selic), including through the repurchase operations referred to in Resolution No. 3,339, of January 26, 2006, custodied in a specific account in that system, based on the daily position registered at the close of Selic.

§
2º The credit transfer from the CCME account must be commanded exclusively by an institution holding a Bank Reserves Account, Settlement Account or, if a direct participant of the Instantaneous Payments System (SPI), its own Instantaneous Payment Account (Conta PI).

§
3º The electronic currency issuing institution that is not the holder of a Bank Reserves Account or Settlement Account may make a debit transfer from the CCME account exclusively to the credit of a Bank Reserves Account of its free choice, for each transaction, or to the credit of its own Instantaneous Payment Account (Conta PI).

§
4º The electronic currency issuing institution that is the holder of a Settlement Account may make a debit transfer from the CCME account only to the credit of its own Settlement Account, for each transaction, or to the credit of its own Instantaneous Payment Account (Conta PI).

................................................................................................................” (NR)

Art. 2º The sole paragraph of art. 1º of Circular No. 3,681, of 2013, is hereby repealed.

Art. 3º This Resolution enters into force on November 3, 2020.

Otávio Ribeiro Damaso
Regulation Director