Joint Circular CVM/SIN/SMI 01/22

SECURITY AND EXCHANGE COMMISSION OF BRAZIL
Seven of September Street, 111/2-5th and 23-34th Floors - Center - Rio de Janeiro - RJ - CEP: 20050-901 - Brazil Tel.: (21) 3554-8686 - www.cvm.gov.br CIRCULAR LETTER/CVM/SMI/SIN No. 1/2022 Rio de Janeiro, January 31, 2022

To the directors responsible for compliance with Resolution 50, of August 31, 2021, and to fiduciary administrators and asset managers of investment funds and portfolios that are not classified as financial institutions.

Subject: Regular sharing of information for the purposes of preventing money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction - AML/CFT.

Dear Sirs/Madams,

1. Considering that the operation of investment funds and portfolios is materialized through the action of asset managers and fiduciary administrators, alongside, primarily, custodians and distributors;

2. Considering that, following Law 9,613, of March 3, 1998 (“Law 9,613/98”), the CVM’s regulation on AML/CFT, especially art. 17 of Resolution 50, of August 31, 2021 (“CVM Resolution 50/21”), presupposes the sharing of information – including regarding unitholders – among the various service providers of investment funds, as a relevant tool to be implemented in order to:

2.1. mitigate the risk that these vehicles are used as instruments for money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction (“AML/CFT”), as well as;

2.2. dilute possible impacts on the monitoring of operations and situations (under the terms of arts. 20, 27, and 28 of “CVM Resolution 50/21”) due to eventual asymmetries in the risk appetite of the various service providers interacting with these funds;

3. Considering that CVM Resolution No. 21, of February 25, 2021 (“CVM Resolution 21/21”), in its article 24, imposes on asset managers and fiduciary administrators the obligation to ensure control over confidential information to which they have access, requiring, for this purpose, the implementation of training programs and periodic security tests for information systems;

4. Considering the prominent role that asset managers play in the operation of investment funds, being able to even act in the distribution of investment fund shares that they manage;

5. The purpose of this Circular Letter is to recognize not only the necessity, but the indispensability of, for the purposes of complying with AML/CFT rules, having the sharing of information – including regarding direct unitholders, and indirect ones when necessary – among the service providers of investment funds, notably fiduciary administrators, asset managers, custodians, and distributors.

6. We highlight that Complementary Law 105/01 (“CL 105/01”), as well as Law 9,613/98 and Law No. 13,709, of August 14, 2018, the General Data Protection Law (“LGPD”), must be read together and under the premise of systematic and teleological application. CL 105/01, in the context of an investment fund and an administered portfolio, cannot be invoked to prevent the adoption of all procedures necessary for the implementation of the system for preventing and combating AML/CFT. The aforementioned Laws coexist, must be harmonized and respected among themselves, as well as interpreted in a way to achieve their maximum effectiveness.

7. It is also worth mentioning that, for AML/CFT purposes, legal entities subject to Resolution 50/21 cannot allege any modality of restriction on access to unitholder information, in the regular exercise of their activities, due to issues arising from an eventual confidentiality regime (legal, commercial, among others), or other legal restrictions, such as events within the scope of LGPD or resulting from regulations governing the existence of activity segregation (Chinese wall) between areas of the institution itself.

8. Following best practices and in the search for tackling AML/CFT, we clarify that, in the understanding of these superintendencies, the exchange of information protected by CL 105/01 among the service providers of investment funds, including with the asset manager and fiduciary administrator that are not classified as a financial institution, does not represent a violation of CL 105/01, being in consonance with the spirit and purpose of the aforementioned Law and other applicable norms, especially the regulation issued by this Autarchy, and must, naturally, observe the confidentiality obligations provided for in CVM Resolution 21/21.

9. On this occasion, we remind you that, within the scope of Decree 10,270, of March 6, 2020, and due to the upcoming new Mutual Evaluation of Brazil by the FATF, it was made available to all obligated persons in Siscoaf on 05/21/2021 (i) the first National Risk Assessment of AML/CFT (ANR), (ii) its respective Executive Summary, (iii) the National Risk Assessment – Methodology, and (iv) Cases and Cases – Collection of AML/CFT Typologies.

10. In this sense, and without prejudice to the content of the ANR having already been replicated in the BSM and ANBIMA environments, we reinforce that the senior management and directors responsible for CVM Resolution 50/2021 of all persons obligated to the AML/CFT standard must access and analyze these documents, especially the ANR, for the purposes of elaborating their Internal Risk Assessments and parametrizing their risk matrices and monitoring systems. The conclusion of this analysis must be made available to CVM supervision, or even self-regulation, when applicable.

Sincerely,

Digitally signed by
MARCUS VINÍCIUS DE CARVALHO
Coordinator of the AML/CFT Core of the General Superintendency

Digitally signed by
DANIEL WALTER MAEDA BERNARDO
Superintendent of Institutional Investor Supervision

Digitally signed by
FRANCISCO JOSÉ BASTOS SANTOS
Superintendent of Market Relations and Intermediaries