Circular Letter No. 2826 — Discloses a list of operations and situations that may constitute evidence of crimes under Law No. 9,613 of March 3, 1998, and establishes procedures for communication to the Central Bank of Brazil

CARTER-CIRCULAR NO. 002826

Discloses a list of operations and situations that may constitute evidence of the occurrence of crimes provided for in Law No. 9,613 of March 3, 1998, and establishes procedures for its communication to the Central Bank of Brazil.

The execution of the operations or the verification of the situations described below, considering the parties involved, the values, the methods of execution, the instruments used, or the lack of economic or legal basis, may constitute evidence of the occurrence of crimes provided for in Law No. 9,613 of March 3, 1998, in view of the provisions of Articles 2, sole paragraph, and 4, "caput", of Circular No. 2,852 of December 3, 1998:

I - situations related to operations in cash or with travel checks:

a) movement of values exceeding the limit established in Article 4, item I, of Circular No. 2,852/98, or of amounts lower than that which, due to their habitual nature and form, constitute an artifice to circumvent the aforementioned limit;

b) overdraft withdrawals, covered on the same day; c) movements made by natural or legal persons whose transactions or business normally take place through the use of checks or other forms of payment;

d) substantial increases in the volume of deposits of any natural or legal person, without apparent cause, especially if such deposits are subsequently transferred, within a short period of time, to a destination previously unrelated to the client;

e) deposits made through numerous deliveries, such that the total of each deposit is not significant, but the aggregate of such deposits is;

f) exchange of large quantities of small-denomination notes for large-denomination notes;

g) proposal to exchange large amounts of national currency for foreign currency and vice versa;

h) deposits containing counterfeit notes or through the use of forged documents;

i) deposits of large amounts through the use of electronic means or others that avoid direct contact with bank staff;

j) purchases of travel checks and administrative checks, payment orders, or other instruments in large quantities - individually or collectively - regardless of the values involved, without evidence of a clear purpose;

l) movement of resources in locations located on borders;

II - situations related to the maintenance of current accounts:

a) movement of resources incompatible with the client's assets, economic activity, or professional occupation and presumed financial capacity;

b) resistance in facilitating the information necessary for the opening of an account, providing false information, or providing information that is difficult or costly to verify;

c) acting, in a habitual manner, on behalf of third parties or without revealing the true identity of the beneficiary;

d) numerous accounts aimed at receiving deposits in the name of the same client, whose values, when added, result in a significant amount;

e) accounts that do not demonstrate being the result of normal activities or business, as they are used to receive or pay significant amounts without clear indication of purpose or relation to the account holder or their business;

f) existence of a regular process of consolidating resources from accounts maintained in various financial institutions in the same location prior to the requests for corresponding transfers;

g) withdrawal of a significant amount from an account that has been little used or from an account that received an unusual deposit;

h) joint and simultaneous use of separate tellers to carry out large operations in cash or foreign exchange;

i) preference for the use of safes, bundled deposit or withdrawal packages, or systematic use of rented safes;

j) waiver of the option to use privileges such as receiving credit, high remuneration interest on large balances, or other special banking services that, under normal circumstances, would be valuable to any client;

l) sudden and apparently unjustified change in the form of resource movement and/or types of transactions used;

m) unusual payment of a problematic loan without any apparent explanation for the origin of the resources;

n) frequent requests to increase limits for the execution of operations;

o) acting to induce an institution employee not to keep, in a file, specific reports on any operation performed;

p) receipt of resources with immediate purchase of travel checks, payment orders, or other instruments for making payments to third parties;

q) receipt of deposits in checks and/or in cash, from various locations, with transfer to third parties;

r) transactions involving non-resident clients; s) requests to facilitate the granting of financing - particularly for real estate - when the client's source of income is not clearly identified;

t) opening and/or movement of an account by a holder of a power of attorney or any other type of mandate;

u) opening of an account in a bank branch located in a passenger station - airport, bus station, or port - international or tourist attraction points, unless by an owner, partner, or employee of a company regularly installed in these locations;

v) proposal to open a current account by presenting identification documents and the number of the Individual Taxpayer Registry (CPF) issued in a border region or by a person residing, domiciled, or conducting economic activity in border countries;

x) movement of current accounts that present debits and credits that, due to their habitual nature, value, and form, constitute an artifice to circumvent the identification of those responsible for the deposits and the beneficiaries of the withdrawals;

III - situations related to international activities:

a) operation or proposal for its execution, with direct or indirect link, in which the foreign person is resident, domiciled, or has headquarters in a region considered a tax haven, or in locations where the habitual practice of the crimes provided for in Article 1 of Law No. 9,613/98 is observed;

b) request for facilities strange or improper for negotiating foreign currency;

c) operations of interest to a non-traditional person in the bank or unknown to it, who has a banking and financial relationship in another location;

d) advance payments for imports and exports by a company without tradition or whose financial assessment is incompatible with the amount negotiated;

e) negotiation with gold by non-traditional persons in the sector;

f) use of credit cards in amounts not compatible with the financial capacity of the user;

g) frequent unilateral transfers or of high values, especially as donations;

IV - situations related to employees of institutions and their representatives:

a) unusual change in the lifestyle and behavior patterns of the employee or representative;

b) unusual modification of the operational result of the employee or representative;

c) any business transaction carried out by an employee or representative - when the identity of the final beneficiary is unknown - contrary to the normal procedure for the type of operation in question.

2. The communication, in accordance with Article 4 of Circular No. 2,852/98, of the situations related to this Circular Letter, as well as others that, although not mentioned, may also constitute the occurrence of the crimes provided for in Law No. 9,613/98, must be carried out through a transaction of the Central Bank Information System - SISBACEN, to be disclosed in due course, by the next business day following verification. While the aforementioned transaction is not disclosed, such communication must be sent to the Supervision Department (DEFIS), via transaction PMSG750 of that System.

3. With a view to complying with the provisions of Article 1, item III, of Circular No. 2,852/98:

I - the data related to the operations mentioned therein must be kept available to the Central Bank of Brazil, comprising, at a minimum, the following:

a) type; b) value in reais; c) date of execution; d) CPF number or National Registry of Legal Entities (CNPJ) of the holder;

II - the aggregate of active and passive financial movements carried out in the country must be considered, such as:

a) deposits of any kind; b) placement of titles issued by the institution itself or quotas of investment funds; c) sale of precious metals; d) sale of administrative or travel checks; e) payment orders; f) payment or early amortization of loans;

III - regarding operations involving international transfers, as well as those related to payments and receipts resulting from the use of internationally valid credit cards, the procedures for registration in SISBACEN and for sending information to the Central Bank of Brazil, established in the current exchange regulations, must be observed.

4. This Circular Letter enters into force on the date of its publication, producing effects, regarding the adoption of the procedures and measures dealt with in items 2 and 3, from March 1, 1999.

Brasilia, December 4, 1998

EXCHANGE DEPARTMENT SUPERVISION DEPARTMENT

Jose Maria Ferreira de Carvalho Luiz Carlos Alvarez Head Head

FINANCIAL SYSTEM STANDARDS DEPARTMENT

Antonio Francisco Bernardes de Assis
Acting Head