Circular No. 3654 — Amends Circular No. 3,461 of July 24, 2009, Consolidating Rules on Procedures for Preventing and Combating Activities Related to Crimes Under Law No. 9,613 of March 3, 1998

The Collegiate Board of the Central Bank of Brazil, in a session held on March 20, 2013, based on the provisions of arts. 10, item IX, and 11, item VII, of Law No. 4,595 of December 31, 1964, 10, 11 and 11-A of Law No. 9,613 of March 3, 1998, having in view the provisions of the Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, promulgated by Decree No. 154 of June 26, 1991, the United Nations Convention Against Transnational Organized Crime, promulgated by Decree No. 5,015 of March 12, 2004, the International Convention for the Suppression of the Financing of Terrorism, promulgated by Decree No. 5,640 of December 26, 2005, the Inter-American Convention Against Terrorism, promulgated by Decree No. 5,639 of December 26, 2005, and the United Nations Convention Against Corruption, promulgated by Decree No. 5,687 of January 31, 2006,

R E S O L V E:

Art. 1º Arts. 1, 2, 4, 9, 10, 12, 13, 14 and 17 of Circular No. 3,461 of July 24, 2009, shall enter into force with the following wording:

“Art. 1º Financial institutions and other institutions authorized to operate by the Central Bank of Brazil must implement internal policies, procedures and controls, compatible with their size and volume of operations, aimed at preventing their use in the practice of the crimes set forth in Law No. 9,613 of March 3, 1998.

......” (New)

“Art. 2º ......

I - customer qualification:

a) natural persons: full name, parentage, nationality, date and place of birth, identification document (type, number, date of issue and issuing authority) and registration number in the Individual Taxpayer Registry (CPF); and

b) legal entities: trade or corporate name, main activity, form and date of incorporation, information referred to in item “a” that qualifies and authorizes the administrators, agents or proxies, registration number in the National Registry of Legal Entities (CNPJ) and data of the constitutive acts duly registered in accordance with the law;

II - complete residential and commercial addresses;

III - telephone number and Direct Distance Dialing (DDD) code;

IV - monthly income and asset values, in the case of natural persons, and average monthly revenue for the twelve months prior, in the case of legal entities; and

V - declaration signed regarding the purposes and nature of the business relationship with the institution.

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§ 4º The registration information relating to an investment fund client must include its respective name, CNPJ registration number, as well as the information referred to in items I to III relating to the persons responsible for its administration.

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“Politically Exposed Persons (PEP)

Art. 4º The institutions referred to in art. 1 must obtain from their permanent customers information that allows them to characterize them or not as politically exposed persons (PEP) and identify the origin of the funds involved in the transactions of customers so characterized.

§ 1º Public agents who hold or have held, in the last five years, in Brazil or in countries, territories and foreign dependencies, relevant public offices, jobs or functions, as well as their representatives, family members and other persons in their close relationship, are considered PEPs.

§ 2º In the case of Brazilian customers, the following must be included:

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III - the members of the National Council of Justice, the Federal Supreme Court, the superior courts, the federal, labor and electoral regional courts, the Superior Council of Labor Justice and the Council of Federal Justice;

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VI - the governors of States and the Federal District, the presidents of courts of justice, legislative assemblies and chambers, the presidents of state, federal district and municipal courts of accounts, and of municipal accounts councils;

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§ 3º ......

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III - consult commercial databases on PEPs; and

IV - consider as PEP the person who holds or has held prominent public functions in a foreign country, such as heads of state or government, high-level politicians, high-ranking government, judicial, legislative or military officials, directors of public companies or directors of political parties.

§ 4º The five-year period referred to in § 1 must be counted retroactively from the date of the beginning of the business relationship or the date on which the customer came to be classified as a PEP.

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§ 6º In the case of a business relationship with a foreign customer who is also a customer of a foreign institution supervised by a governmental entity similar to the Central Bank of Brazil, it is admitted that the measures regarding PEPs are adopted by the foreign institution, provided that access to the respective data and procedures adopted by the Central Bank of Brazil is ensured.

§ 7º Operations or proposals for operations that have a PEP as an involved party will always be considered as deserving of special attention, as provided for in art. 10.

§ 8º The provisions of this article also apply to a person who holds or has held a senior management position in an international organization of any nature, considered as directors, deputy directors, board members or equivalent functions.

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“Art. 9º ......

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§ 3º Financial institutions must request prior notice from their customers, with at least one business day in advance, of cash withdrawals of a value equal to or greater than R$100,000.00 (one hundred thousand reais).

§ 4º The compliance with the provision of § 3 must be carried out without prejudice to the provision of art. 2 of Resolution No. 3,695 of March 26, 2009.” (New)

“Art. 10. ......

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§ 1º ......

I - reinforced continuous monitoring, by adopting more rigorous procedures for the determination of suspicious situations;

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“Art. 12. ......

I - the occurrences referred to in art. 8, § 1, item I; and

II - the occurrences referred to in art. 9, § 1, items I and III.

§ 1º Proposals for the realization of the operations referred to in items I and II of the main text must also be communicated to Coaf.

§ 2º The communications of the occurrences mentioned in the main text must be carried out by the next business day after they are verified.” (New)

“Art. 13. ......

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§ 2º The communications of the occurrences referred to in items I to IV of the main text must be carried out by the next business day after they are verified.

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“Art. 14. The communications referred to in arts. 12 and 13 must be made without giving notice to the involved parties or to third parties.

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“Art. 17. The Central Bank of Brazil will apply, cumulatively or not, the sanctions provided for in art. 12 of Law No. 9,613 of 1998, in the manner established by legislation, to the institutions mentioned in art. 1 of this Circular, as well as to their administrators who fail to comply with the obligations established in this Circular.” (New)

Art. 2º Circular No. 3,461 of 2009 is hereby added with art. 15-A, with the following wording:

“Art. 15-A. The institutions referred to in art. 1 that have not made communications in accordance with arts. 12 and 13 in each calendar year must submit a declaration, through the Financial Activities Control System (Siscoaf), attesting to the non-occurrence of transactions subject to communication as provided for in this Circular.

Sole paragraph. The declaration mentioned in the main text must be:

I - sent within ten business days after the end of the calendar year;

II - considered for the purpose of verifying compliance with the provision of art. 11, item III, of Law No. 9,613 of 1998; and

III - provided, with respect to art. 12, only by institutions that maintain the records mentioned in arts. 8 and 9 of this Circular.”

Art. 3º This Circular enters into force on the date of its publication.

Luiz Edson Feltrim Anthero de Moraes Meirelles Director of Regulation of the System Director of Supervision Financial, substitute