Circular No. 3585 — Procedures for Preparing and Submitting Financial Statements of Institutions with Foreign Dependencies or Equity Participation

The Coordinated Board of Directors of the Central Bank of Brazil, in a session held on March 14, 2012, based on the provisions of Articles 10, § 3, and 22 of Resolution No. 2,723, of May 31, 2000,

R E S O L V E:

Art. 1 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil that have a dependency or equity participation abroad, in accordance with Article 10 of Resolution No. 2,723, of May 31, 2000, must prepare, for the base dates of March, June, September, and December, the following statements:

I - Analytical Balance Sheet – Individual Position of Dependency Abroad, document No. 1 of the Accounting Plan of the Institutions of the National Financial System (Cosif), code 4303;

II - Analytical Balance Sheet – Individual Position of Equity Participation Abroad, document No. 1 of Cosif, code 4313; and

III - Analytical Balance Sheet – Consolidated Position of Dependencies and Equity Participations Abroad, document No. 4 of Cosif, code 4343.

§ 1 The statements referred to in this article must be prepared in national currency using the standardized list of accounts of Cosif.

§ 2 The accounting statements mentioned in the caput must be sent to the Central Bank of Brazil by the last business day of the month following the respective base date.

§ 3 The statements mentioned in items I and II of the caput must be prepared based on the values recorded in the accounting books of the unit abroad, observing the accounting criteria provided for in Cosif.

§ 4 The consolidated statement mentioned in item III of the caput must be prepared using the values recorded in the statements mentioned in items I and II of the caput, observing the same accounting criteria applicable in the preparation of the statements of the operational conglomerate.

§ 5 Institutions that have only one dependency or equity participation in only one entity located abroad are exempt from preparing and submitting the statement mentioned in item III of the caput.

§ 6 Accounting events related to representative offices must be incorporated into the accounting of the headquarters or the dependency to which they refer.

Art. 2 The following statements are eliminated from Cosif:

I - Analytical Balance Sheet - Individualized Position of Dependencies Abroad, document No. 18, code 4180;

II - Analytical Balance Sheet - Individualized Position of Equity Participations Abroad, document No. 18, code 4183;

III - Consolidated Analytical Balance Sheet - Consolidated Position of Dependencies Abroad, document No. 18, code 4780;

IV - Analytical Balance Sheet - Individualized Position of Dependencies Abroad, document No. 19, code 4196;

V - Analytical Balance Sheet - Individualized Position of Equity Participations Abroad, document No. 19, code 4186;

VI - Consolidated Analytical Balance Sheet - Consolidated Position of Dependencies Abroad, document No. 19, code 4796;

VII - Statement of the Result of the Semester - Agencies Abroad, document No. 20; and

VIII - Statement of the Result of the Semester - Agencies Abroad - Consolidated, document No. 20.

Art. 3 The institutions referred to in Art. 1 must maintain:

I - an updated record of all their units abroad in the Information System on Entities of Interest of the Central Bank (Unicad); and

II - the custody of working papers, calculation memos, and analytical controls used in the preparation of the accounting statements provided for in this Circular, in good order, for a minimum period of five years, or for a longer period in case of express determination.

Art. 4 Article 5 of Circular No. 2,397, of December 29, 1993, shall be amended to read as follows:

"Art. 5 Institutions authorized to operate by the Central Bank of Brazil that have a dependency abroad must prepare the following consolidated accounting statements in accordance with the standards provided for in Cosif:

......

II - ......

......

d) Consolidated Statement of Cash Flows of the Semester;

III - ......

......

c) Consolidated Statement of Cash Flows of the Fiscal Year." (NR)

Art. 5 The Department of Financial System Monitoring (Desig) is authorized to establish operational procedures for the submission of the statements provided for in this Circular and for the registration in Unicad of the respective units abroad.

Art. 6 This Circular enters into force on the date of its publication, producing effects from the base date of September 2012.

Art. 7 Articles 1 to 4, 6, 7, and items I to VI of Article 11 of Circular No. 2,397, of December 29, 1993, are hereby repealed.

Luiz Awazu Pereira da Silva
Director of Financial System Regulation