CVM Instruction No. 523 of May 28, 2012 (Revoked)

CVM INSTRUCTION NO. 523, OF MAY 28, 2012.

Amends articles of CVM Instruction No. 301, of April 16, 1999.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Board, in a meeting held on May 9, 2012, in view of Law No. 6,385, of December 7, 1976, as well as the provisions of Arts. 9 to 13 of Law No. 9,613, of March 3, 1998, and the sole paragraph of Art. 14 of the Annex to Decree No. 2,799, of October 8, 1998, APPROVED the following Instruction:

Art. 1. Arts. 1, 3-A, 4, 6, 7 and 9 of CVM Instruction No. 301, of April 16, 1999, shall enter into force with the following wording:

“Art. 1. The provisions of this Instruction regulate the identification and registration of clients, the record of transactions and the limit referred to in items I and II of Art. 10, the monitoring and communication of operations and the limit referred to in items I and II of Art. 11, and the administrative liability provided for in Arts. 12 and 13, all provisions of Law No. 9,613, of March 3, 1998, which deals with the crimes of “money laundering” or concealment of assets, rights and values, including with regard to the prevention of the use of the financial system for the practice of such illicit acts.” (NR)

“Art. 3-A ...

I – continuously adopt rules, procedures and internal controls, in accordance with previously and expressly established procedures, aiming to confirm the registration information of its clients, keep them updated, and monitor the operations carried out by them, in order to avoid the use of the account by third parties and identify the ultimate beneficiaries of the operations;

...

III – supervise more rigorously the business relationship maintained with politically exposed persons;

IV – devote special attention to proposals for the beginning of a relationship and to operations carried out with politically exposed persons, including those from countries with which Brazil has a high number of financial and commercial transactions, common borders or ethnic, linguistic or political proximity;

V – maintain rules, procedures and internal controls to identify clients who became politically exposed persons after the beginning of the relationship with the institution or it is found that they were already politically exposed persons at the beginning of the relationship with the institution and apply the same treatment as items III and IV; and

VI – maintain rules, procedures and internal controls to identify the origin of the resources involved in the transactions of clients and beneficiaries identified as politically exposed persons.

...”(NR)

“Art. 4. ...

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II – the verification of the financial movement of each client, based on a criterion defined in the rules, procedures and internal controls of the institution, in relation to the patrimonial and financial situation stated in its registration, considering:

...”(NR)

“Art. 6. For the purposes of the provision of Art. 11, item I, of Law No. 9,613, of 1998, the persons mentioned in Art. 2 of this Instruction must continuously monitor the following operations or situations involving securities or financial assets:

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VIII – operations with the participation of natural persons residing or entities constituted in countries that do not apply or apply insufficiently the recommendations of the Financial Action Task Force against Money Laundering and the Financing of Terrorism - FATF;

...

XII – deposits or transfers made by third parties, for the settlement of client operations, or for the provision of guarantee in operations in the future settlement markets;

XIII – payments to third parties, in any form, on account of the settlement of operations or redemption of values deposited as collateral, registered in the name of the client;

XIV – situations in which it is not possible to keep the registration information of its clients updated;

XV – situations and operations in which it is not possible to identify the ultimate beneficiary; and

XVI – situations in which the diligence provided for in Art. 3-A cannot be concluded.

...” (NR)

“Art. 7. ...

...

§ 5. The records of the conclusions of its analyses regarding operations or proposals that underpinned the decision to make, or not, the communications referred to in the caput must be kept for a period of 5 (five) years, or for a longer period by express determination of the CVM, in case of an administrative process.” (NR)

“Art. 9. ...

I – adopt and implement rules, procedures and internal controls that enable the faithful observance of the provisions of this Instruction, including:

a) the collection and registration of information about clients to allow the timely identification of the risks of practicing the crimes mentioned in Art. 1 of this Instruction;

b) the prior analysis of new technologies, services and products, aiming at the prevention of the crimes mentioned in Art. 1 of this Instruction; and

c) the selection and monitoring of employees, with the aim of guaranteeing high standards of their staff, aiming at the prevention of the crimes mentioned in Art. 1 of this Instruction;

II – maintain a continuous training program for employees, aimed at disseminating the rules, procedures and internal controls and prevention of money laundering and terrorist financing.” (NR)

Art. 2. The title preceding Art. 6 of CVM Instruction No. 301, of 1999, shall enter into force with the following wording:

“ON THE MONITORING AND COMMUNICATION OF OPERATIONS” (NR)

Art. 3. This Instruction enters into force on the date of its publication.

Signed original by

MARIA HELENA DOS SANTOS FERNANDES DE SANTANA
President