Circular Letter CVM/SMI/SIN 04/2015

COMMISSION OF SECURITIES AND EXCHANGE (CVM)
Seven of September Street, 111/2
Circular Letter No. 04/2015/CVM/SMI/SIN

To
Directors Responsible for CVM Instruction No. 301, of April 16, 1999

Subject: New routines in ICVM

Dear Sirs/Madams,

1. On October 16, 2015, Law No. 13.170/15 was published, which will enter into force on January 18, 2016, establishing new procedures to be observed by the natural and legal persons listed in Article 9 of Law No. 9.613/98, in cases of blocks determined in actions for the unavailability of assets, values, and rights resulting from the incorporation of resolutions of the United Nations Security Council, international legal cooperation arising from other jurisdictions in accordance with current national legislation, as well as conviction sentences related to the practice of terrorist acts and other legal provisions.

2. In this regard, the obligated persons referred to in Article 2 of ICVM 301/99 shall notify the CVM and the Financial Activities Council (COAF) of the existence of assets, values, and rights in possession or ownership, as well as all other rights, real or personal, held directly or indirectly, by the natural or legal persons that comprise some of the lists described in paragraph 1 of this Circular Letter, in the manner set forth below:

a) The CVM shall be notified electronically at the address: listas@cvm.gov.br

b) The COAF shall be notified in the CVM Segment of Siscoaf under the classification provided for in Article 7, paragraph 3, of ICVM 301/99, recently incorporated into that environment.

3. Without prejudice to the above, the obligated persons referred to in Article 2 of said Instruction must proceed with the immediate blocking of the identified assets, values, and rights, upon receipt of a judicial order, in accordance with what is expressly provided for in paragraph 2 of Article 5 of Law No. 13.170, of 2015. Furthermore, they must immediately notify the effective blocking:

a) To the CVM electronically at the address: listas@cvm.gov.br;

b) To the judge who determined the measure;

c) To the Attorney General's Office (Advocacia-Geral da União) electronically at the address: internacional@agu.gov.br, and;

d) To the Ministry of Justice electronically at the address: drci@mj.gov.br

4. Therefore, in view of the principles contained in Article 7, caput and paragraph 3, and Article 9 of ICVM 301/99 and in order to comply with the provisions contained in Law No. 13.170/15, the obligated persons mentioned above must promptly adjust their rules, procedures, and internal controls to include the obligations addressed in this Circular Letter in their Anti-Money Laundering and Counter-Terrorist Financing routines.

5. The unavailability of assets, values, and rights is valid until judicial lifting and must be observed even for the purpose of initiating and continuing any business relationship maintained by the obligated persons referred to in Article 2 of ICVM 301/99, generating immediate blocking and notification upon the emergence of any asset, value, or right or upon any proposal for any operation with these.

Sincerely,

WALDIR DE JESUS NOBRE
Superintendent of Market Relations and Intermediaries

FRANCISCO JOSÉ BASTOS SANTOS
Superintendent of Relations with Institutional Investors