Circular Letter No. 3.412

CIRCULAR LETTER No. 003412 ------------------------ Discloses amendments to Circular Letters No. 3.020 of 20 May 2002, No. 3.235 of 17 May 2006, No. 3.265 of 13 February 2007 and No. 3.329 of 15 July 2008. The Head of the Currency Department (Mecir), using the authority conferred on him by art. 22, item I, subitem -a-, of the Internal Rules of the Central Bank of Brazil, annexed to Administrative Rule No. 29.971 of 4 March 2005, based on the provisions of art. 10, item II, of Law No. 4.595 of 31 December 1964 and in view of the issuance of Circular No. 3.438 of 2 March 2009, which regulates the Banking Reserves Account and the Settlement Account at this Autarchy, DISCLOSES: Art. 1 The Circular Letters No. 3.020 of 20 May 2002, No. 3.235 of 17 May 2006, No. 3.265 of 13 February 2007 and No. 3.329 of 15 July 2008 are amended as follows. Art. 2 Paragraph 6 is excluded and paragraph 1 of Circular Letter No. 3.020 of 20 May 2002 is amended, which shall henceforth have the following wording: "As a result of the provisions of art. 10, item II of Law No. 4.595 of 31 December 1964, and of art. 7 of Circular No. 3.109 of 10 April 2002, the procedures for accreditation of agents to be observed by financial institutions holding a Banking Reserves Account or Settlement Account are amended, in the form of this Circular Letter, with the objective of carrying out cash movements with the Central Bank of Brazil and the Custodian." Art. 3 Paragraphs 1, 10, 20 and the caput of paragraph 14 of Circular Letter No. 3.235 of 17 May 2006 are amended, which shall henceforth have the following wording: "The Central Bank of Brazil, in the exercise of the attributions conferred on it by art. 10, item II, of Law No. 4.595 of 31 December 1964, with a view to standardizing procedures for maintaining the good condition of the currency in circulation, which is a fundamental requirement to ensure the recognition of its security features, hereby establishes criteria for the classification of currency to be forwarded to the Custodian Institution by financial institutions holding a Banking Reserves Account or Settlement Account." "10. When torn banknotes are presented by the public, the institutions referred to in paragraph 1 shall consider them unfit for circulation and replace them at their full value or accept them in payments or deposits and subsequently forward them - separated from the others - for exchange at the Custodian Institution." "14. Financial institutions holding a Banking Reserves Account or Settlement Account shall reassemble torn banknotes that are not whole or that are ripped, as follows:" "20. The procedures described in this Circular Letter shall also be observed when forwarding currency directly to the Central Bank of Brazil." Art. 4 Paragraph 2, the caput of paragraph 4, paragraph 7 and paragraph 20 of Circular Letter No. 3.265 of 13 February 2007 are amended, which shall henceforth have the following wording: "2. Financial institutions holding a Banking
Reserves Account or Settlement Account may register requests for withdrawal and deposit of currency in advance or on the same day, and in the latter case, fulfillment is conditioned upon compliance with routines defined by the Currency Department - Mecir." "4. Financial institutions holding a Banking Reserves Account or Settlement Account must register requests for currency withdrawal for fulfillment by the Custodian, observing that:" "7. Financial institutions holding a Banking Reserves Account or Settlement Account may cancel unfulfilled requests, observing the provisions of item 10." "20. Financial institutions holding a Banking Reserves Account or Settlement Account must maintain, with the Custodian, an updated register of the signatures of persons accredited for the purposes provided in item 18." Art. 5 The heading and the caput of paragraph 2 of Circular Letter No. 3.329 of 15 July 2008 are amended, which shall henceforth have the following wording: "Establishes procedures for the withdrawal from circulation of national banknotes and coins identified as counterfeit or of doubtful legitimacy, by financial institutions holding a Banking Reserves Account or Settlement Account, and their sending to the Central Bank of Brazil." "2. Financial institutions holding a Banking Reserves Account or Settlement Account, when they identify national banknotes and coins as counterfeit or of doubtful legitimacy, must, in the case of specimens not having been requested by police or judicial authority:" Art. 6 This Circular Letter enters into force on the date of its publication. Rio de Janeiro, 3 September 2009. João Sidney de Figueiredo Filho Head