Circular No. 3438 — Regulates the Bank Reserves Account and the Settlement Account at the Central Bank of Brazil

CIRCULAR NO. 003438

Regulates the Bank Reserves Account and the Settlement Account at the Central Bank of Brazil.

The Executive Board of the Central Bank of Brazil, in a session held on February 27, 2009, based on Article 10, item IV, of Law No. 4,595, of December 31, 1964, as amended by Article 20 of Law No. 7,730, of January 31, 1989, and considering the provisions of Article 13 of the regulation annexed to Circular No. 3,057, of August 31, 2001,

DECIDED:

Article 1. Available funds held at the Central Bank of Brazil, in national currency, by commercial banks, investment banks, savings banks, exchange banks, development banks, and multiple banks must be registered in the Bank Reserves Account, subject to the provisions of Article 4.

Article 2. The Settlement Account is intended for registration, in national currency:

I - if held by a clearinghouse or a compensation and settlement service provider:

a) the settlement of results calculated in their respective settlement systems;

b) the execution of financial movements directly related to the mechanisms and safeguards adopted in settlement systems that operate or are linked to custody events related to the settlement of issuer obligations; and

c) the settlement of financial obligations between the Central Bank of Brazil and the respective holders;

II - if held by an institution authorized to operate by the Central Bank of Brazil, not listed in Article 1, for the registration of funds held therein and of movements in the Reserve Transfer System (STR).

Article 3. The movement of resources between the Central Bank of Brazil and the holders of Bank Reserves Accounts or Settlement Accounts is carried out exclusively through these accounts.

Article 4. The Bank Reserves Account is held by:

I - mandatory, for commercial banks, multiple banks with a commercial portfolio, and savings banks; and

II - optional, for investment banks, exchange banks, multiple banks without a commercial portfolio, and development banks.

Sole Paragraph. Only one Bank Reserves Account is permitted per institution.

Article 5. The Settlement Account is held by:

I - mandatory, for clearinghouses and compensation and settlement service providers responsible for settlement systems considered systemically important, in accordance with current regulation; and

II - optional, for other clearinghouses and compensation and settlement service providers, and for institutions authorized to operate by the Central Bank of Brazil not listed in Article 4.

§ 1. Each Settlement Account held by a clearinghouse or a compensation and settlement service provider serves only one settlement system.

§ 2. Only one Settlement Account is permitted per institution.

Article 6. The Settlement Account held by a clearinghouse or a compensation and settlement service provider must have a zero balance daily at the time of the STR closing, with any remaining resources transferred, by the Central Bank of Brazil, to a bank current account previously indicated for this purpose by the holder.

Sole Paragraph. For the purpose of this article, the holder must inform the Department of Banking Operations and Payment Systems (Deban) of two bank current accounts, indicating priority for one of them.

Article 7. The opening of the accounts referred to in Articles 1 and 2 is authorized by Deban, observing the procedures established by it, and is subject to proof, including through tests conducted in accordance with current regulation, of the applicant's technological and operational capacity to access the STR.

§ 1. The request must be signed by a representative statutorily authorized.

§ 2. The accounts referred to in this article are opened after the STR closes on the business day immediately preceding the start date of operations in the account.

Article 8. The accounts referred to in Articles 1 and 2 must always show a balance greater than or equal to zero.

Article 9. The transfer of funds originating from the accounts referred to in this circular promotes the alteration of the balances of the involved accounts, for all purposes, exclusively at the moment when executed.

Article 10. The accounts referred to in this circular are closed:

I - upon occurrence of ordinary liquidation, extrajudicial liquidation, civil insolvency, bankruptcy, or, whenever applicable, change of corporate object of its holder; and

II - when the holding is optional:

a) at the discretion of the Central Bank of Brazil, in the event that the holder fails to comply with current regulation; and

b) at the request of the holder, through correspondence signed by a statutorily authorized representative.

§ 1. In the situation referred to in item "b" of item II, the account closure must be requested at least ten business days in advance.

§ 2. The account is closed:

I - after the STR closes on the date established by the holder, when requested;

II - after the STR closes on the date of publication by the Central Bank of Brazil of the homologation act, in cases of ordinary liquidation and change of corporate object;

III - at the moment of publication of the corresponding act by the Central Bank of Brazil, in the case of extrajudicial liquidation;

IV - timely, when notification is made to the Central Bank of Brazil of the declaration of civil insolvency or bankruptcy by the competent judicial authority; or

V - at any time, at the discretion of the Central Bank of Brazil, in cases of closure due to non-compliance with current regulation.

§ 3. Upon closure of the account, any remaining resources are transferred to the bank current account indicated for this purpose by a statutorily authorized representative of the institution, by the liquidator, by the trustee, or by the administrator, as applicable.

Article 11. This circular enters into force on the date of its publication.

Article 12. Circular No. 3,101, of March 28, 2002, is hereby revoked.

São Paulo, March 2, 2009.

Mario Torós
Director