Circular No. 3988 — Establishes complementary procedures and conditions for opening, maintaining, and closing deposit accounts

The Collegiate Board of the Central Bank of Brazil, in a session held on March 4, 2020, based on Articles 9 and 37 of Law No. 4,595 of December 31, 1964, and in view of Article 13 of Resolution No. 4,753 of September 26, 2019,

R E S O L V E S:

Article 1. This Circular establishes complementary procedures and conditions for the opening, maintenance, and closing of deposit accounts.

Article 2. For the purpose of closing a deposit account due to the verification of irregularities in the information provided, the following are considered serious irregularities, among others, situations where the registration in the Individual Taxpayer Registry (CPF) or the National Registry of Legal Entities (CNPJ) is defined in a normative instruction of the Brazilian Federal Revenue Service as:

I - "suspended," "cancelled," or "null," in the CPF; and

II - "unfit," "closed," or "null," in the CNPJ.

Article 3. The financial institution holding a deposit account owned by a legal entity must suspend the authorization of the respective representative, attorney, or agent to operate the account if it verifies a serious irregularity in the registration of these agents in the CPF.

Article 4. For the purpose of closing a deposit account with any available balance, the holding institution must:

I - reclassify the balance of the closed account to the appropriate accounting subtitle included in the breakdown of the original accounting subgroup representative of the obligation, maintaining the record until the full settlement of the obligation, as provided by current legislation;

II - maintain individualized internal controls per closed account until the full settlement of the obligation;

III - retain all documentation related to the closed account for at least five years, from the full settlement of the obligation, as provided by current legislation; and

IV - prepare a semi-annual report regarding closed accounts, containing at minimum information regarding the owner, the balance, and the reason for the closure, which must remain available to the Central Bank of Brazil for a minimum period of five years.

Article 5. The following are revoked:

I - Circular No. 917 of February 25, 1985;

II - Circular No. 2,452 of July 21, 1994;

III - Circular No. 2,520 of December 15, 1994;

IV - Circular No. 2,556 of April 20, 1995;

V - Circular No. 3,665 of August 21, 2013;

VI - Circular No. 3,731 of November 18, 2014;

VII - Circular No. 3,763 of August 21, 2015;

VIII - Circular No. 3,788 of April 7, 2016; and

IX - Circular No. 3,804 of July 13, 2016.

Sole Paragraph. Any citation to Circulars No. 3,763 of 2015, 3,788 of 2016, and 3,804 of 2016, contained in normative acts published by the Central Bank of Brazil, shall henceforth refer to this Circular.

Article 6. This Circular enters into force on April 1, 2020.

                              Otávio Ribeiro Damaso Director of Regulation