Regulatory Alerts2019-12-05
Added · Updated
CVM Resolution 50 of August 31, 2021, with Amendments Introduced by CVM Resolutions 179/23 and 245/26
CVM Resolution 50 establishes the regulatory framework for the prevention of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction (PLD/FTP) within the Brazilian securities market, revoking Instruction CVM No. 617/2019. It mandates that covered entities—including securities distributors, market administrators, and independent auditors—implement a risk-based PLD/FTP policy, conduct internal risk assessments, and maintain robust internal controls, client identification, and monitoring procedures. The resolution requires the appointment of a compliance director to submit an annual risk assessment report to the CVM by the last business day of April and defines specific obligations for identifying beneficial owners and reporting suspicious transactions to the Financial Activities Control Council (COAF).