COAF Resolution No. 1 of 13 April 1999

Provides the procedures to be observed by legal persons that carry out real‑estate promotion activities or buying and selling of real estate

Notes:

1. Revoked by COAF Resolution No. 14, of 23 October 2006, Official Gazette 25 October 2006.

2. The revoked resolution read as follows:

The President of the Council for the Control of Financial Activities – COAF, exercising the authority conferred by item IV of article 9 of the Statute approved by Decree No. 2,799 of 8 October 1998, makes public that the Council Plenary, in a session held on 7 April 1999, based on § 1 of article 14 of Law No. 9,613 of 3 March 1998, resolved:

SECTION I – PRELIMINARY PROVISIONS

Art. 1 With the objective of preventing and combating the crimes of "money laundering" or concealment of assets, rights and values, as established in Law No. 9,613 of 3 March 1998, regulated by Decree No. 2,799 of 8 October 1998, legal persons that carry out real‑estate promotion activities or buying and selling of real estate must observe the provisions contained in this Resolution.

Sole paragraph. The provisions of this Resolution apply to legal persons that carry out real‑estate promotion activities or buying and selling of real estate on a permanent or occasional basis, as a primary or ancillary activity, cumulatively or not.

SECTION II – CLIENT IDENTIFICATION AND RECORD‑KEEPING

Art. 2 The persons mentioned in article 1 must identify their clients and keep a register, in accordance with this Resolution.

Art. 3 The register must contain, at a minimum, the following information about all participants in the operation (buyers, sellers, their spouses or partners, as well as their attorneys or representatives):

I – If a legal person:

a) corporate name;

b) names of administrators, owners or controllers;

c) form and date of incorporation (registration with the respective commercial board);

d) Business Registration Identification Number – NIRE – and registration number in the National Register of Legal Entities – CNPJ;

e) full address (street, complement, neighborhood, city, federative unit, ZIP code), telephone; and

f) main activity developed;

II – If a natural person:

a) name, gender, date of birth, parentage, place of birth, nationality, marital status and name of spouse or partner;

b) full address (street, complement, neighborhood, city, federative unit, ZIP code), telephone;

c) identification document number, issuing authority and date of issuance or passport data or civil identity card, if foreign;

d) registration number in the Individual Taxpayer Registry – CPF; and

e) main activity developed.

SECTION III – TRANSACTION RECORDS

Art. 4 The persons mentioned in article 1 must keep a record of every real‑estate transaction that exceeds the amount equivalent to R$ 50,000.00 (fifty thousand reais).

Art. 5 The transaction record must contain, at a minimum, the following information:

I – date of execution and transaction amount, settlement condition (cash, installment, financed) and payment method (cash, check, financing);

II – description of the property and location (street, complement, neighborhood, city, federative unit and ZIP code, if urban; or denomination, boundaries, municipality and federative unit, if rural);

III – municipal registration number of the property for Urban Property and Land Tax – IPTU, or the registration kept by the National Institute for Colonization and Agrarian Reform – INCRA, for Rural Land Tax – ITR; and

IV – registration number and date of entry in the real‑estate registry office.

Sole paragraph. Operations carried out by the same natural or legal person, conglomerate or group, within the same calendar month that together exceed the limit set in the preceding article must also be recorded.

SECTION IV – SUSPICIOUS OPERATIONS

Art. 6 The persons mentioned in article 1 must give special attention to operations or proposals that, according to the Annex to this Resolution, may constitute serious indications of the crimes provided for in Law No. 9,613 of 1998, or be related to them.

SECTION V – COMMUNICATIONS TO COAF

Art. 7 The persons mentioned in article 1 must communicate to COAF, within 24 hours and without informing the clients of such act, any proposal or execution of transactions covered by article 6.

Art. 8 Communications to COAF made in good faith, as provided in § 2 of article 11 of Law No. 9,613 of 1998, will not give rise to civil or administrative liability.

Art. 9 The information referred to in article 7 may be sent by electronic process.

SECTION VI – GENERAL AND FINAL PROVISIONS

Art. 10 The registers and records provided for in this Resolution must be kept by the persons mentioned in article 1 for a minimum period of five years from the completion of the transaction.

Art. 11 The persons mentioned in article 1 must, at any time, comply with information requests made by COAF concerning clients, their attorneys or representatives and the agreed‑upon operations.

Art. 12 Legal persons mentioned in article 1, as well as their administrators, who fail to fulfill the obligations set out in this Resolution will be subject, cumulatively or not, to the sanctions provided in article 12 of Law No. 9,613 of 1998, as stipulated in Decree No. 2,799 of 1998 and in the Minister of Finance Ordinance No. 330 of 18 December 1998.

Art. 13 COAF will make available, prior to the start of the effects of this Resolution, an Internet address for receiving communications.

Art. 14 The Presidency of the Council is authorized to issue complementary instructions to this Resolution, especially regarding the provisions of Section V – Communications to COAF.

Art. 15 This Resolution enters into force on the date of its publication, producing effects from 2 August 1999.

ADRIENNE GIANNETTI NELSON DE SENNA

ANNEX – List of Suspicious Operations

1. Operations in which the buyer:

1.1 uses cash exceeding R$ 10,000.00 (ten thousand reais), or its equivalent in other currencies, for settlement;

1.2 uses or proposes payment, in whole or in part, with resources of diverse origins (checks from several banks, from various locations, from various issuers) or of diverse natures (national or foreign currency, securities, metals, or any asset that can be converted into cash);

1.3 has proposed payment through the transfer of resources between foreign bank accounts;

1.4 does not appear to have the financial capacity for the operation, suggesting the possibility of a "front man" or "straw person", as commonly used for persons who lend their names to dubious operations;

1.5 refuses to comply with registration requirements or attempts to induce the business responsible not to keep files that could reconstruct the agreed operation;

1.6 makes payment with checks or any other banking instruments issued by branches located in border cities or abroad, when the use of such payment method is not justified;

1.7 proposes overvaluation of the property;

1.8 carries out successive real‑estate transactions, personally or through third parties;

1.9 is a company with headquarters or a branch in a tax haven or offshore center or uses resources originating from those locations.

2. Other operations that, by their characteristics concerning the parties involved, amounts, manner of execution, instruments used or lack of economic or legal justification, may constitute a hypothesis of crimes provided for in Law No. 9,613 of 3 March 1998, or be related to them.