Circular No. 1783 - Reserve Requirements in Cruzados Novos - Alters Criteria for Monetary Fine Penalties

CIRCULAR NO. 001783

TO
THE INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

ALTERS THE PENALTY CRITERION REFERRED TO IN CIRCULAR NO. 1,724, OF MAY 10, 1990.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING HELD ON JULY 18, 1990, COMPLEMENTING THE PROVISIONS IN CIRCULARS NOS. 1,663, 1,687, 1,702, 1,724, 1,736, 1,759 AND 1,765 OF APRIL 11, APRIL 20, APRIL 30, MAY 10, MAY 24, JUNE 15 AND JUNE 26, 1990, RESPECTIVELY, DECIDED:

ART. 1. REDUCE THE FINE REFERRED TO IN ALINÉA D OF ITEM I OF ART. 4 OF CIRCULAR NO. 1,724, OF MAY 10, 1990, TO 50 (FIFTY) TIMES THE CURRENT MAXIMUM REFERENCE VALUE (MVR), RETROACTIVELY TO MAY 21, 1990, IN THE FOLLOWING SITUATIONS:

I - IN CASES OF FAILURE TO MEET DEADLINES BY INSTITUTIONS THAT ARE PRESENTING THE BIWEEKLY STATEMENTS AND/OR INFORMING THE DAILY DATA;

II - IF THE INSTITUTION THAT HAS NOT YET PRESENTED THE BIWEEKLY STATEMENTS AND/OR HAS NOT INFORMED THE DAILY DATA PROVIDES THESE ELEMENTS BY AUGUST 10, 1990.

ART. 2. INSTITUTIONS THAT DO NOT PRESENT THE BIWEEKLY STATEMENTS AND/OR DO NOT INFORM THE DAILY DATA BY AUGUST 10, 1990, REMAIN SUBJECT TO THE FINE CORRESPONDING TO 200 (TWO HUNDRED) TIMES THE CURRENT MAXIMUM REFERENCE VALUE (MVR) UNTIL THE DATE THEY REGULARIZE THE SUBMISSION OF SUCH INFORMATION, ONLY BECOMING ENTITLED TO THE REDUCTION TO 50 (FIFTY) TIMES THE CURRENT MAXIMUM REFERENCE VALUE (MVR) FOR ANY FUTURE DEADLINE VIOLATIONS THAT OCCUR AFTER THESE PENDING ITEMS HAVE BEEN REGULARIZED.

ART. 3. FINES APPLIED TO INSTITUTIONS PURSUANT TO CIRCULAR NO. 1,724, OF MAY 10, 1990, ARE ELIGIBLE FOR REFUND IN THE FOLLOWING SCENARIOS:

I - THE INSTITUTION WAS FINED FOR FAILURE TO SUBMIT, WITHIN THE ESTABLISHED DEADLINE, THE INFORMATION REGARDING VALUES AT THE ORDER OF THE CENTRAL BANK AND DAILY COSTS, ALINÉAS A AND B OF ART. 1 OF LETTER-CIRCULAR NO. 2,078, OF APRIL 30, 1990, AND HAD VALUES AT THE ORDER OF THE CENTRAL BANK (ACCOUNT 4.9.7.99.00-4) AND DAILY DEFICIENCY EQUAL TO ZERO; AND

II - THE INSTITUTION WAS FINED FOR FAILURE TO REPORT, WITHIN THE ESTABLISHED DEADLINE, THE VALUE REGARDING DAILY COSTS, ALINÉA B OF ART. 1 OF LETTER-CIRCULAR NO. 2,078, OF APRIL 30, 1990, AND ITS CURRENT DEFICIENCY LIMIT DURING THE RELEVANT PERIOD WAS EQUAL TO ZERO.

ART. 4. THE AMOUNTS OF FINES COLLECTED FROM INSTITUTIONS COVERED BY THE ABOVE SITUATIONS, ELIGIBLE FOR RETURN, WILL BE REFUNDED, AFTER THE INFORMATION IN QUESTION IS PROVIDED, CORRECTED BY THE VARIATION OF THE TAX OF THE NATIONAL TREASURY BONUS FISCAL (BTN-FISCAL).

ART. 5. THIS CIRCULAR SHALL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), JULY 19, 1990.

LUIS EDUARDO ALVES DE ASSIS GUSTAVO JORGE LABOISSIÈRE LOYOLA DIRECTOR DIRECTOR