Circular Letter CVM/SIN 04/01

CIRCULAR LETTER/CVM/SIN/NO. 004/2001
Rio de Janeiro, August 16, 2001.
Subject: Crimes of "money laundering" or concealment of assets, rights, and values – Application of CVM Instruction No. 301/99

Dear Director,

We emphasize that, as provided for in Article 2 of CVM Instruction No. 301/99, the administrators of investment clubs regulated by CVM Instruction No. 40/84 are also responsible for the obligations set forth in CVM Instruction No. 301/99, which governs the identification, registration, record-keeping, operations, communication, limits, and administrative liability regarding the crimes of "money laundering" or concealment of assets, rights, and values, as set out in Law No. 9,613 of March 3, 1998.

2. Considering the competence delegated to Stock Exchanges by CVM Instruction No. 40/84 regarding the registration and monitoring of investment club activities, we request that You inform the administrators of investment clubs registered with that Stock Exchange of their responsibilities and obligations set forth in CVM Instruction No. 301/99, and also verify, through audit, the full compliance by administrators with the determinations contained in the aforementioned Instruction.

3. We alert that non-compliance with the determinations contained in the aforementioned Instruction will subject the offender to the penalties provided for in Article 12 of Law No. 9,613/98.

4. Finally, this Commission must be notified of any irregularities eventually found by the audit of that Stock Exchange.

Sincerely,

Signed original by
CARLOS EDUARDO P. SUSSEKIND
Superintendent of Institutional Investor Relations