Circular No. 3833 — Establishes criteria, procedures, and accounting rules applicable to payment institutions

CIRCULAR NO. 3,833, OF MAY 17, 2017

Establishes criteria, procedures, and accounting rules applicable to payment institutions.

The Collegiate Board of the Central Bank of Brazil, in a session held on May 17, 2017, based on arts. 9, items I, II, IX, letter “b”, and 15, caput and § 2, of Law No. 12,865, of October 9, 2013, and having in view the provisions of Resolution No. 4,282, of November 4, 2013,

RESOLVES:

Art. 1 This Circular establishes the criteria, procedures, and rules for accounting bookkeeping and for the preparation, submission, and disclosure of financial statements by payment institutions authorized to operate by the Central Bank of Brazil.

Art. 2 The institutions mentioned in Art. 1 must observe:

I - the criteria, procedures, and rules for accounting identification, recognition, measurement, and disclosure established in the regulation in force on the date of publication of this Circular, embodied in the Chart of Accounts of the Institutions of the National Financial System (Cosif); and

II - the criteria established in this Circular and, when not conflicting with these, the set of general criteria provided for in Cosif, in the preparation, submission, and disclosure of their financial statements.

Art. 3 The attribute “Y” is defined in the list of accounts of Cosif for the relationship of items eligible for use by the institutions mentioned in Art. 1 in their accounting bookkeeping.

Sole Paragraph. The existence of accounting items with a specific attribute for the institution does not imply permission to carry out operations or services prohibited by law, regulation, or administrative act, or dependent on prior authorization by the Central Bank of Brazil.

Art. 4 The institutions mentioned in Art. 1 must prepare the following financial statements, in accordance with the provisions in the regulation in force embodied in Cosif:

I - monthly, balance sheet trial balance;

II - semi-annually, relative to the base dates of June 30 and December 31:

a) balance sheet;

b) statement of the result of the semester;

c) statement of the cash flows of the semester; and

d) statement of the changes in shareholders' equity of the semester; and

III - annually, relative to the base date of December 31:

a) balance sheet;

b) statement of the result of the fiscal year;

c) statement of the cash flows of the fiscal year; and

d) statement of the changes in shareholders' equity of the fiscal year.

Art. 5 Subject to the other legal and regulatory provisions in force, the financial statements mentioned in Art. 4 must be disclosed on the institution's website on the internet or in a repository on the internet, with free public access, that has the specific objective of disclosing accounting and financial documents.

§ 1 The semi-annual and annual financial statements must be accompanied by explanatory notes, the report of the independent auditor, and the report of the administration on the social business and the main administrative facts of the period.

§ 2 In the case of substitution or exclusion of financial statements disclosed on the institution's website on the internet or in the repository mentioned in the caput, the replaced documents must be made available to the Central Bank of Brazil for a period of at least five years.

Art. 6 In the disclosure of financial statements, the institutions mentioned in Art. 1 are permitted:

I - the comparative presentation of the semi-annual and annual financial statements relative to the year of their authorization to operate by the Central Bank of Brazil; and

II - the use of the statement of result model provided for non-financial companies, according to the accounting practices adopted in the Country, in substitution to the standardized models defined in Cosif.

Art. 7 The procedures and rules established by this Circular must be applied prospectively by payment institutions authorized to operate by the Central Bank of Brazil until the date of publication of this Circular, from May 1, 2017.

Art. 8 Payment institutions authorized to operate by the Central Bank of Brazil after the date of publication of this Circular that are already in operation on the date of authorization must observe, prospectively, the procedures and rules defined in this Circular, from the base date following the date of authorization.

Sole Paragraph. Any goodwill balances on the acquisition of investment recorded based on a forecast of future results of the affiliate or controlled entity, existing on the date of initial application by the institutions mentioned in the caput of the procedures and rules defined in this Circular, must be amortized linearly over the remaining period of realization of these results, determined in the projections that justified the recording of the goodwill, in accordance with the regulation in force, limited to five years.

Art. 9 The payment institutions mentioned in Art. 8 must prepare and submit to the Central Bank of Brazil an opening trial balance relative to the base date following the date of authorization to operate granted by this agency, according to the models defined in Cosif, in accordance with the accounting criteria adopted by the institution until that date.

Sole Paragraph. The statement mentioned in the caput must be submitted to the Central Bank of Brazil within thirty days after the respective base date.

Art. 10. The effects of the adjustments resulting from the initial application of the procedures and rules defined in this Circular must be recorded in counterpart to the account of accumulated profits or losses, in shareholders' equity, by the net value of the tax effects.

Art. 11. Annexes 1 and 2 of Circular No. 3,764, of August 26, 2015, are amended, which shall now be in effect with the content of Annexes 1 and 2 of this Circular, respectively.

Art. 12. This Circular enters into force on the date of its publication.

Art. 13. Art. 15 of Circular No. 3,681, of November 4, 2013, is revoked.

Otávio Ribeiro Damaso
Director of Regulation

This text does not replace the published in the DOU of 5/19/2017, Section 1, p. 14/15, and in Sisbacen.

Annex 1
Table of groups of institutions for submission of documents to the Central Bank of Brazil

Group Institutions
Group 01 Commercial banks, multiple banks with commercial portfolio and savings banks.
Group 02 Institutions responsible for conglomerates and institutions responsible for consolidated statements.
Group 03 Multiple banks without commercial portfolio, exchange banks, development banks, investment banks, and the National Bank for Economic and Social Development (BNDES). Group 04 Leasing companies, development agencies, credit, financing and investment companies, savings and loan associations, mortgage companies, and real estate credit companies that present a classified portfolio equal to or greater than R$100,000,000.00 (one hundred million reais). Group 05 Credit cooperatives. Group 06 Foreign exchange brokerage companies, securities brokerage companies, and securities distribution companies that present total assets equal to or greater than R$100,000,000.00 (one hundred million reais). Group 07 Leasing companies, development agencies, credit, financing and investment companies, savings and loan associations, mortgage companies, and real estate credit companies that present a classified portfolio inferior to R$100,000,000.00 (one hundred million reais). Group 08 Foreign exchange brokerage companies, securities brokerage companies, and securities distribution companies that present total assets inferior to R$100,000,000.00 (one hundred million reais). Group 09 Microentrepreneur and small business credit companies. Group 10 Consortium administrators. Group 11 Non-profit consortium administrators. Group 12 Central credit cooperatives, confederations of central banks, commercial cooperative banks, and multiple cooperative banks responsible for combined trial balances of the respective cooperative system. Group 13 Institutions that make up groups 1 to 6 and 15, when in extrajudicial liquidation regime. Group 14 Institutions that make up groups 7 to 11, when in extrajudicial liquidation regime. Group 15 Payment Institutions.

Annex 2
Deadlines for submission of statements to the Central Bank of Brazil

Group of Institutions, according to Annex 1 | Periodicity | Submission Deadline | Cosif Document | Cadoc Code --- | --- | --- | --- | --- 01 | Monthly | Day 18 of the month following the respective base date | No. 1 | 4010

	Last business day of the month following the respective base date	No. 13	4500
		No. 1	4020
Quarterly	Last business day of the month following, for base dates of March, June, September, and December	No. 1	4303
			4313
			4343
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
			4026
02	Monthly	Last business day of the month following the respective base date	No. 4
	Last business day of the month following the respective base date		4060
---	---	---	---
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 4	4046
	Last business day of the month following, for base dates of June 30 and December 31		4066
03 and 04	Monthly	Day 18 of the month following the respective base date	No. 1
	Last business day of the month following the respective base date	No. 1	4020
---	---	---	---
Quarterly	Last business day of the month following, for base dates of March, June, September, and December	No. 1	4303
			4313
			4343
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
			4026
05	Monthly	Day 18 of the month following the respective base date	No. 1
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
06	Monthly	Day 18 of the month following the respective base date	No. 1
	Last business day of the month following the respective base date	No. 1	4020
---	---	---	---
Quarterly	Last business day of the month following, for base dates of March, June, September, and December	No. 1	4303
			4313
			4343
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
			4026
07	Quarterly	Day 18 of the month following for base dates of March, June, September, and December	No. 1
	Last business day of the month following, for base dates of March, June, September, and December	No. 1	4020
---	---	---	---
			4303
			4313
			4343
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
			4026
08	Quarterly	Day 18 of the month following for base dates of March, June, September, and December	No. 1
	Last business day of the month following, for base dates of March, June, September, and December	No. 1	4020
---	---	---	---
			4303
			4313
			4343
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
			4026
09	Quarterly	Day 18 of the month following for base dates of March, June, September, and December	No. 1
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
10	Quarterly	Day 18 of the month following for base dates of March, June, September, and December	No. 1
	Last business day of the month following, for base dates of March, June, September, and December	No. 6	4110
---	---	---	---
		No. 7	4350
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
11	Quarterly	Last business day of the month following, for base dates of March, June, September, and December	No. 6
	Last business day of the month following, for base dates of March, June, September, and December	No. 7	4350
12	Quarterly	Last business day of the month following, for base dates of March, June, September, and December	No. 4
	Last business day of the month following, for base dates of March, June, September, and December	No. 4	4423
---	---	---	---
	Last business day of the month following, for base dates of March, June, September, and December	No. 4	4433
13	Monthly	Day 18 of the month following the respective base date	No. 1
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
14	Quarterly	Day 18 of the month following, for base dates of March, June, September, and December	No. 1
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016
15	Monthly	Day 18 of the month following the respective base date	No. 1
Semi-annual	Last business day of the month following, for base dates of June 30 and December 31	No. 1	4016