CMN Resolution No. 2707 - National Deregulation Program - Decree No. 83,740 of July 18, 1979 - Regulations on the Hiring of Correspondents in the Country

RESOLUTION NO. 2707

NATIONAL DEREGULATION PROGRAM - Decree No. 83,740, of July 18, 1979 - Regulates the hiring of correspondents in the Country.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on March 30, 2000, based on Articles 4, items VI and VIII, 17, and 18, paragraph 1, of the aforementioned Law and Article 14 of Law No. 4,728, of July 14, 1965, and considering the provisions of Article 3, item V, of the aforementioned Law No. 4,595, of 1964,

RESOLVES:

Article 1. It is permitted for multiple banks with commercial portfolios, commercial banks, and Caixa Econômica Federal to hire companies to perform the functions of correspondent in the Country, with a view to providing the following services:

I - reception and forwarding of proposals for opening checking, time deposit, and savings accounts;

II - receipts and payments related to checking, time deposit, and savings accounts, as well as investments and redemptions in investment funds;

III - receipts and payments resulting from service provision agreements maintained by the contracting party in accordance with current regulations;

IV - active or passive execution of payment orders on behalf of the contracting party;

V - reception and forwarding of loan and financing requests;

VI - credit analysis and registration;

VII - execution of bill collection;

VIII - other control activities, including data processing, of the agreed operations;

IX - other activities, at the discretion of the Central Bank of Brazil.

Paragraph 1. The permission provided for in this article may be exercised by multiple banks with credit, financing, and investment portfolios and credit, financing, and investment companies, regarding the services referred to in items V to VIII.

Paragraph 2. The hiring of a company to provide the services referred to in items I and II depends on prior authorization from the Central Bank of Brazil, and in other cases, it must be communicated to that Autarchy.

Article 2. Contracts regarding the provision of correspondent services under this Resolution must include clauses providing:

I - the total responsibility of the contracting financial institution for the services provided by the hired company;

II - the prohibition, for the hired company, of:

a) sub-contracting the contract to third parties, totally or partially;

b) making advances on behalf of resources to be released by the contracting financial institution;

c) issuing coupons or titles related to the intermediated operations in its own favor;

d) charging, on its own initiative, any tariff related to the provision of services referred to in the contract;

e) providing any type of guarantee in the operations referred to in the contract;

III - that financial settlements between the contracting financial institution and the hired company must occur, at most, every two business days;

IV - that, in loan and financing contracts, the release of resources will be effected by means of a named check, issued by the contracting financial institution in favor of the beneficiary or the commercial selling company, or credit in a checking account of the beneficiary or the commercial selling company;

V - the obligation of the hired company to disclose, on a panel posted in a location visible to the public, information that unequivocally explains its status as a mere service provider to the contracting financial institution.

Sole Paragraph. Alternatively to the payment scheme provided for in item IV, the release of resources may be processed by means of a named check issued by the hired company, acting on behalf and order of the contracting financial institution, in favor of the beneficiary or the commercial selling company, provided that, daily, the total value of the issued checks is identical to the value of the resources received from the contracting financial institution for such purpose.

Article 3. Companies hired to exercise the function of correspondent under this Resolution are subject to the penalties provided for in Article 44, paragraph 7, of Law No. 4,595, of 1964, should they perform, on their own behalf and order, operations exclusive to financial institutions.

Article 4. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution.

Article 5. This Resolution enters into force on the date of its publication.

Article 6. Resolution No. 2,640, of August 25, 1999, is hereby revoked.

Brasília, March 30, 2000

Arminio Fraga Neto
President