Central Bank of Brazil Resolution Amending Foreign Investment Registration Rules

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on November 24, 2016, having regard to Articles 4 (items V and XXXI) and 57 of the aforementioned Law, Law No. 4,131 of September 3, 1962, Article 65 of Law No. 9,069 of June 29, 1995, and Article 5, paragraph 5, of Law No. 11,371 of November 28, 2006,

R E S O L V E D:

Article 1. Article 5 of Resolution No. 3,844 of March 23, 2010, shall enter into force with the following sole paragraph added:

“Article 5. ...

Sole paragraph. The responsibility for the veracity, legality, and economic justification of the declarations submitted lies with the person responsible for the registration, as indicated in the Regulations Annexed to this Resolution.” (NR)

Article 2. The Regulation Annex I to Resolution No. 3,844 of 2010 shall enter into force with the following alterations:

“Article 4. The receiving company is responsible for the electronic declaratory registration with the Central Bank of Brazil of direct foreign investment in the country.

§ 1. The receiving company may appoint, as agents, natural or legal persons authorized to include, consult, and update the registrations referred to in the main text.

§ 2. Financial institutions and other institutions authorized to operate by the Central Bank of Brazil may include and alter agents provided they are duly authorized by the receiving company.

§ 3. The documentation proving the authorizations referred to in §§ 1 and 2 must be kept available to the Central Bank of Brazil for a minimum period of 5 (five) years, counted from the date of expiration of the respective authorizations.” (NR)

“Article 4-A. The non-resident investor, through their agent in the country, may consult their registered investment.” (NR)

“Article 6. Capitalizations of profits, dividends, interest on own capital, and profit reserves, in the receiving company where they were generated, must be registered as reinvestment in the currency of the country to which they could have been remitted, calculated based on the value declared in reais, or, in the case of investment registered in national currency, in reais.” (NR)

Article 3. Item I of Article 5 of Regulation Annex V to Resolution No. 3,844 of 2010 shall enter into force with the following wording:

“I - in the case of direct foreign investment, the receiving company of the investment;” (NR)

Article 4. This Resolution enters into force on January 30, 2017.

Article 5. Article 20 of Regulation Annex II to Resolution No. 3,844 of March 23, 2010, is hereby repealed.

Ilan Goldfajn
President of the Central Bank of Brazil