Circular No. 3870 — Dispenses on the Supply of Information Regarding Credit Operations to the Credit Information System (SCR)

The Collegiate Board of the Central Bank of Brazil, in a session held on December 19, 2017, based on the provisions of Articles 9, 10, item VI, 11, item VII, and 37 of Law No. 4,595 of December 31, 1964, Article 1, § 3, item I of Complementary Law No. 105 of January 10, 2001, Articles 9 and 15 of Law No. 12,865 of October 9, 2013, and in view of the provisions of Resolution No. 4,571 of May 26, 2017,

R E S O L V E S:

Article 1. The institutions mentioned in Article 4 of Resolution No. 4,571 of May 26, 2017, must provide the Credit Information System (SCR) with information regarding the credit operations referred to in Article 3 of that Resolution:

I - individually with respect to each operation, when the value of the set of the client's operations is equal to or greater than R$200.00 (two hundred reais), included in this value are the credit operations carried out or acquired by the entities and programs or public funds mentioned in Article 5 of Resolution 4,571 of 2017;

II - in an aggregated manner, when the value of the set of the client's operations is less than R$200.00 (two hundred reais), included in this value are the credit operations carried out or acquired by the entities and programs or public funds mentioned in Article 5 of Resolution 4,571 of 2017;

§ 1. Regardless of the value, information regarding credit and financial leasing statistics must be sent in an aggregated manner.

§ 2. Credit operations carried out or acquired by dependencies and subsidiaries located abroad by the institutions referred to in the main text, must be reported as follows:

I - regarding individual clients - in an aggregated manner;

II - regarding corporate clients:

a) until the reference date of October 2018 - in an aggregated manner;

b) from the reference date of November 2018 - individually with respect to each operation, when the value of the set of the client's operations is equal to or greater than US$2,000,000.00 (two million United States dollars), and in an aggregated manner when the set of the client's operations is less than the cited value.

§ 3. Institutions classified in Segments 4 and 5 (S4 and S5), in accordance with Article 2 of Resolution No. 4,553 of January 30, 2017, must send the information referred to in § 2 of this article in an aggregated manner.

§ 4. In cases where the legislation of the jurisdiction in which the dependency or subsidiary is located prevents the provision of information in an individualized manner, it must be sent in an aggregated manner.

§ 5. Information regarding credit operations carried out or acquired by dependencies and subsidiaries located abroad is intended exclusively for the purpose mentioned in item I of Article 2 of Resolution No. 4,571 of 2017.

§ 6. Information regarding credit operations carried out or acquired by the entities and programs or public funds mentioned in Article 5 of Resolution No. 4,571 of 2017, will be reported to the SCR:

I - from the reference date of May 2019 - regarding other entities, not mentioned in Article 4 of Resolution No. 4,571 of 2017, that have their consolidated statements in their respective prudential conglomerates;

II - from the reference date of November 2019 - regarding public programs or funds, including municipal, state, and federal constitutional ones, not consolidated in their respective prudential conglomerates, in which the institutions referred to in Article 4 of Resolution No. 4,571 of 2017, or the entities referred to in item I, perform the function of administrator, financial agent, or operator.

§ 7. Institutions classified in Segments 4 and 5 (S4 and S5), in accordance with Article 2 of Resolution No. 4,553 of 2017, are exempt from sending the information referred to in item I of § 6 of this article.

§ 8. The institutions referred to in the main text must communicate the non-existence of credit operations contracted, in the manner established by this Autarchy.

Article 2. For the purposes of the provision of item XVIII of Article 4 of Resolution No. 4,571 of 2017, and in this Circular, payment institutions must send the SCR information regarding credit operations, in accordance with that Resolution.

Article 3. For the purposes of the provision of item X of Article 3 of Resolution No. 4,571 of 2017, and in this Circular, credits resulting from the commercialization of goods and services, acquired by a factoring company (factoring), are equated to credit operations.

Article 4. For securities acquired by the institution in operations recognized as credit by the Central Bank of Brazil, in accordance with item X of Article 3 of Resolution No. 4,571 of 2017, institutions must provide information to the SCR considering the issuer as the client.

Article 5. The institutions mentioned in Article 4 of Resolution No. 4,571 of 2017 must provide the SCR with individualized complementary data regarding clients and the list of their connected counterparties, as referred to in Article 22 of Resolution No. 4,557 of February 23, 2017.

Article 6. For the purposes of sending information to the SCR, the institutions mentioned in Article 4 of Resolution No. 4,571 of 2017 must observe the provisions of Resolution No. 3,533 of January 31, 2008, regarding the negotiation of credit operations, as well as the following:

I - in cases where there is substantial retention of risks and benefits by the assignor:

a) the assigning institutions, mentioned in the main text of this article, must identify as the client, the drawee, the debtor, or the ultimate borrower of the credit operations;

b) the assigning institutions must provide the SCR with information regarding the credit operations, identifying as the client, the intervenor or the assignor;

c) the provisions of this item also apply to negotiations carried out between the institutions mentioned in Article 4 of Resolution No. 4,571 of 2017, and by the entities and programs or public funds referred to in Article 5 of the same Resolution.

II - in cases where there is substantial transfer of risks and benefits by the assignor:

a) the assigning institutions must provide the SCR with information regarding the credit operations subject to negotiation, in the name of the drawee, the debtor, or the ultimate borrower;

b) the assigning institutions must provide the SCR with information regarding the credit operations subject to negotiation, in the name of the drawee, the debtor, or the ultimate borrower, when such negotiation occurs with investment funds administered by the assigning institution or by another institution belonging to the prudential conglomerate;

III - in cases of negotiation of credit operations without substantial transfer and retention of risks and benefits, but with retention of control by the assignor, the provisions of item I must be observed;

IV - in cases of negotiation of credit operations without substantial transfer and retention of risks and benefits, but with the assumption of control by the assignee, the provisions of item “a” of item II must be observed.

Sole Paragraph. From the reference date of November 2019, information regarding credit operations granted by the institutions and entities mentioned in Article 4 and in item I of Article 5 of Resolution No. 4,571 of 2017, and which are subject to negotiation with substantial transfer of risks and benefits or control, in the same month of granting, must be provided to the SCR by the assigning institution.

Article 7. The substantial retention of risks and benefits or control in the negotiation of credit operations, as provided in Resolution No. 3,533 of 2008, is characterized when the institutions mentioned in Article 4 of Resolution No. 4,571 of 2017, carry out:

I - the acquisition of the following financial instruments that attribute to the acquiring institution significant participation in the risks and benefits regarding credit operations:

a) subordinated shares of investment funds;

b) real estate receivable certificates (CRI);

c) debentures issued by credit securitization companies; and

d) certificates of bank credit notes (CCCB) or other financial instruments representing the negotiation of credit titles.

II - in the manner of Article 6 of this Circular, the negotiation in which the intervenor or the assignor assumes, even tacitly, the obligation to replace or repurchase, due to default by the drawee, the debtor, or the ultimate borrower, any of the operations among those negotiated.

§ 1. The provisions of this article also apply to negotiations of credit operations carried out with investment funds, credit securitization companies, or special purpose entities.

§ 2. Data regarding substantial retention or transfer of risks and benefits of part of the credit operations negotiated in the manner of Article 6 of this Circular can only be provided to the SCR in a proportional manner, by the institutions involved in the negotiation, when it is possible to unequivocally identify the portion or proportion of the value of the operation corresponding to the retained or transferred risks and benefits.

Article 8. Information regarding the following must not be provided to the SCR:

I - credits resulting from the commercialization of goods and services carried out by the entities referred to in item I of Article 5 of Resolution No. 4,571 of 2017, with the exception of those referred to in Article 3 of this Circular;

II - public bonds;

III - securities intermediation operations;

IV - investment fund shares and securitization titles, as defined in Article 115 of Circular No. 3,648 of March 4, 2013;

V - shares, shares, and subscription bonuses, when they do not have fixed-income characteristics;

VI - operations with financial derivative instruments or certificates of structured operations;

VII - interbank deposits, bank deposits, or letters issued by financial institutions; and

VIII - credits resulting from insurance, co-insurance, reinsurance, capitalization bonds, consortium, supplementary pension plans, and health plans.

Article 9. The provision of information to the SCR must be carried out considering the present value at the reference date of each of the cash flows foreseen in the contract, observing the provisions of Article 9 of Resolution No. 2,682 of December 21, 1999.

Article 10. Institutions obliged to send information to the SCR must disclose, at a minimum, the following clarifications:

I - the purpose and use of the system's information;

II - the methods of consulting the system's information;

III - the procedures to be observed with respect to their own institutions for:

a) the correction and exclusion of information contained in the system;

b) the registration of judicial measures;

c) the recording of a statement of disagreement regarding the information contained in the system;

IV - the consultation of any information in the system depends on prior authorization from the client;

V - the authorization referred to in item IV extends to institutions that, in accordance with current regulations, can perform consultations to the SCR and that acquire or receive as collateral, or express interest in acquiring or receiving as collateral, wholly or partially, credit operations responsible by the client;

VI - it is the exclusive responsibility of the sending institution to insert information regarding the client;

VII - regardless of what is recorded in the SCR regarding operations responsible by the client, the decision to grant new credit operations is exclusive to the institution, according to its credit policy;

VIII - the statements of information contained in the SCR are prepared according to accounting criteria and specific methodology established by the Central Bank of Brazil, and may differ from those presented by other systems that have distinct nature and purpose;

IX - information regarding the amount of client liabilities in credit operations is sent to the Central Bank of Brazil based on the balance existing on the last day of the reference month, therefore, there is a time lag between the sending of the data, its processing by the Central Bank of Brazil, and its availability in the SCR;

X - the consultation of information existing in the client's own name in the SCR can also be done through the Registrato system - Statement of Registration of Information at the Central Bank; and

XI - the responsibility for the operationalization of compliance with judicial measures lies with the institutions sending the information.

Article 11. The institutions mentioned in Article 4 of Resolution No. 4,571 of 2017 must send, at a minimum, the following information regarding judicial decisions related to credit operations:

I - the identification of the client;

II - the credit operation, when specified;

III - the reference date, when specified;

IV - the period of coverage; and

V - the nature of the decision, specifying the obligation to remove the registration of the operation in the SCR or to mark it as sub judice.

Sole Paragraph. For the purposes of the provision of item II of Article 2 of Resolution No. 4,571 of 2017, the removal of information or the marking sub judice will be performed for the reference date object of the judicial decision, according to information sent by the institution.

Article 12. The institutions mentioned in Article 4 of Resolution No. 4,571 of 2017 must send, at a minimum, the following information regarding statements of disagreement presented by clients of credit operations:

I - the identification of the client;

II - the credit operation to which they refer;

III - the reference date;

IV - the period subject to disagreement; and

V - the reasons for the disagreement.

Article 13. The institutions mentioned in Article 4 of Resolution No. 4,571 of 2017 must, as soon as they become aware, send, at a minimum, the following information regarding the judicial and extrajudicial recovery processes of clients of credit operations:

I - the identification of the client;

II - the stage of the process; and

III - the start date of each stage.

Article 14. The institutions mentioned in Article 4 of Resolution No. 4,571 of 2017, upon discovering fraud in the granting of an operation, must proceed to remove the registration in the SCR or to mark a contract defect for that operation.

Sole Paragraph. The removal referred to in this article does not constitute an error in the sending of information to the Central Bank of Brazil.

Article 15. The institutions referred to in Article 4 of Resolution No. 4,571 of 2017 may have access to the consolidated information referred to in Article 9 of that Resolution, only for the reference dates sent to the Central Bank of Brazil and incorporated into the SCR database.

Article 16. The institutions referred to in Article 4 of Resolution No. 4,571 of 2017 must designate a director responsible for compliance with the provisions of this Circular and indicate an employee to answer any questions regarding the information provided to the SCR.

§ 1. The designation and indication referred to in this article must be registered in the Information System on Entities of Interest of the Central Bank (Unicad), established by Circular No. 3,165 of December 4, 2002.

§ 2. For the purposes of the responsibility referred to in this article, it is admitted that the designated director performs other functions in the institution, except those related to the administration of third-party resources and treasury operations.

Article 17. The institutions referred to in Article 4 of Resolution No. 4,571 of 2017 must keep available to the Central Bank of Brazil, for a minimum period of 5 (five) years, the data and the description of the methodology used to prepare the information provided to the SCR.

Article 18. The institutions mentioned in Article 4 of Resolution No. 4,571 of 2017, resulting from a process of transformation, incorporation, merger, or spin-off, assume the obligations of the transformed, incorporated, merged, or spun-off institutions, regarding the provision of information to the SCR, including with respect to the provisions of Articles 11 to 14 of this Circular.

Article 19. As provided in the Internal Regulations of the Central Bank of Brazil, the department responsible for the management of the SCR will establish the form, deadlines, and conditions for sending, by the institutions mentioned in Article 4 of Resolution No. 4,571 of 2017, the information referred to in this Circular, observing the need for supervision purposes.

Article 20. This Circular enters into force on January 1, 2018.

Article 21. Article 17 of Circular No. 3,681 of November 4, 2013, and Circular No. 3,567 of December 12, 2011, are revoked, and citations and the legal basis of normative acts issued by the Central Bank of Brazil, based on the now revoked norms, will have this Circular as their reference.

Paulo Sérgio Neves de Souza
Director of Supervision