Circular No. 2408 — Discloses occurrences related to foreign exchange operations under Article 37 of Law No. 4,595 of December 31, 1964, and establishes reparatory procedures for undue remittances abroad

CIRCULAR NO. 002408

Discloses occurrences related to foreign exchange operations that fall under the provisions of Article 37 of Law No. 4,595 of December 31, 1964, and establishes reparatory procedures for undue remittances abroad.

The Board of Directors of the Central Bank of Brazil, in a session held on March 2, 1994, based on Articles 9, 10, items VI and VIII, and 11, item III, of Law No. 4,595 of December 31, 1964, and considering the provisions of Articles 37 and 44, Paragraph 2, item "b", of the aforementioned Law and Resolutions No. 1,453 of January 27, 1988, and No. 1,620 of June 27, 1989, both of the National Monetary Council,

DECIDED:

Article 1. Consider covered by Article 37 of Law No. 4,595 of December 31, 1964, and therefore prejudicial to the faithful performance of the legal duties of the Central Bank of Brazil, the following occurrences related to foreign exchange operations:

I - registration of incorrect, incomplete, or untimely information in the Central Bank Information System (SISBACEN), including regarding the completion of the field designated for identifying the relationship of linkage;

II - absence, in the operation file, of any document required by regulation as necessary for the contracting and/or settlement of a foreign exchange operation;

III - non-settlement of a foreign exchange operation when due due to the form agreed upon by the parties for the delivery of foreign currency;

IV - failure to link (provisioning or application) foreign exchange contracts to documents or computerized records related to exports and imports, including certificates issued by the Central Bank of Brazil, in accordance with current regulations.

Sole Paragraph. The provisions of this article cover the Free Rate and Floating Rate Foreign Exchange Markets and all institutions authorized or accredited by the Central Bank of Brazil to operate in these markets, as well as operations related to international transfers (payments and receipts) of funds in national currency.

Article 2. The detection at any time of the occurrences cited in the previous article will imply a fine equivalent, on the date of payment, to 200 daily UFIR (two hundred Daily Fiscal Reference Units), as provided in Article 44, Paragraph 2, item "b", of Law No. 4,595 of December 31, 1964, without prejudice to other sanctions established in current legislation.

Sole Paragraph. The value of the fine shall be paid:

I - when due by banks: by debit effected by the Central Bank of Brazil to the "Banking Reserves" account, via notice;

II - when due by other institutions: via a collection notice transmitted via SISBACEN - "Electronic Mail", with the value to be paid within a period of up to 2 (two) business days counted from the date of the notice, in accordance with the instructions contained therein.

Article 3. Regardless of the application of the provisions of Articles 1 and 2 of this Circular, the settlement of a foreign exchange operation for undue values or unsupported by documentation required by regulations will imply foreign exchange compensation, through:

I - repatriation of the value in foreign currency transferred unduly, which shall be done by contracting and settling a purchase operation of foreign currency, of a financial nature, with the same classification adopted in the sale operation; or

II - sale of gold to the Central Bank of Brazil, as a replacement of foreign exchange, in an amount equivalent to the value in foreign currency transferred unduly, for which purpose the gold must be acquired directly from a national gold producer-miner.

Sole Paragraph. The sale of gold referred to in item II of this article shall be made at the lowest price observed in the Stock Exchange with the highest trading volume for the product between the date of contracting the foreign exchange operation and the date of sale of the gold to the Central Bank of Brazil.

Article 4. The provisions of this Circular do not eliminate responsibilities that may be attributed to the parties and the intervening broker in the operation, in accordance with current legislation and regulations, due to investigations that may be carried out by the Central Bank of Brazil at any time.

Article 5. This Circular enters into force on March 7, 1994.

Brasília, March 2, 1994

Gustavo H. B. Franco
Director of International Affairs