LAW NO. 13,506, OF NOVEMBER 13, 2017

President of the Republic

I hereby make known that the National Congress decrees and I sanction the following Law:

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CHAPTER I

PRELIMINARY PROVISIONS

Article 1

This Law provides for the sanctioning administrative process in the spheres of activity of the Central Bank of Brazil and the Securities and Exchange Commission.

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CHAPTER II

THE SANCTIONING ADMINISTRATIVE PROCESS IN THE SCOPE OF THE CENTRAL BANK OF BRAZIL

Section I – Preliminary Provisions

Article 2

This Chapter deals with infractions, penalties, coercive measures and alternative dispute‑resolution means applicable to financial institutions, other institutions supervised by the Central Bank of Brazil and members of the Brazilian Payments System, and establishes the procedural rite to be observed in sanctioning administrative processes within the Central Bank of Brazil.

Paragraph 1. The provisions of this Chapter also apply to natural or legal persons who:

1. engage, without the proper authorisation, in activities subject to supervision or oversight by the Central Bank of Brazil;
2. provide independent audit services for the institutions referred to in the caput of this article or cooperative audit services referred to in item V of the caput of art. 12 of Complementary Law No. 130, of April 17, 2009;
3. act as administrators, members of the board of directors, the supervisory board, the audit committee and other bodies provided for in the statutes or articles of incorporation of the institution referred to in the caput of this article.

Paragraph 2. The provisions of this Chapter also apply to administrators and technical responsible persons of legal entities that provide the services mentioned in item 2 of paragraph 1 of this article.

Section II – Infractions

Article 3

The following constitute punishable infractions under this Chapter:

1. carrying out operations in the National Financial System, the Consortia System and the Brazilian Payments System in disagreement with principles provided in legal and regulatory norms governing the activity authorised by the Central Bank of Brazil;
2. carrying out operations or activities that are prohibited, unauthorised or contrary to the authorisation granted by the Central Bank of Brazil;
3. obstructing the inspection of the Central Bank of Brazil;
4. failing to provide the Central Bank of Brazil with documents, data or information whose transmission is imposed by legal or regulatory norms;
5. providing the Central Bank of Brazil with incorrect documents, data or information or doing so outside the deadlines and conditions established in legal or regulatory norms;
6. acting as administrator or member of a body provided for in the statutes or articles of incorporation of the persons mentioned in the caput of art. 2 of this Law without prior approval by the Central Bank of Brazil;
7. failing to adopt internal controls intended to preserve the confidentiality covered by Complementary Law No. 105, of January 10, 2001;
8. trading securities, financial instruments and other assets, or carrying out credit or leasing operations at prices divergent from market prices, to the detriment of oneself or third parties;
9. simulating or structuring operations without economic basis, with the aim of providing or obtaining, for oneself or third parties, undue advantage;
10. diverting resources of the person mentioned in the caput of art. 2 of this Law or of third parties;
11. inserting or maintaining false or incorrect records or information in accounting or financial statements or in audit reports of the person mentioned in the caput of art. 2 of this Law;
12. distributing dividends, paying interest on equity or otherwise remunerating shareholders, administrators or members of bodies provided for in the statutes or articles of incorporation of the person mentioned in the caput of art. 2 of this Law based on results derived from false or incorrect accounting or financial statements;
13. failing to act with diligence and prudence in conducting the interests of the person mentioned in the caput of art. 2 of this Law;
14. failing to segregate the activities of the person mentioned in the caput of art. 2 of this Law from the activities of other companies, controlled or affiliated, thereby generating or contributing to patrimonial confusion;
15. failing to supervise the acts of the administration bodies of the person mentioned in the caput of art. 2 of this Law when obliged to do so;
16. failing to comply with determinations of the Central Bank of Brazil, and their respective deadlines, adopted based on its competence;
17. failing to comply with legal and regulatory norms of the National Financial System, the Consortia System and the Brazilian Payments System, whose compliance is within the Central Bank of Brazil’s supervisory scope, including those relating to:
    a) accounting and auditing; b) preparation, disclosure and publication of accounting and financial statements; c) independent auditing; d) internal controls and risk management; e) corporate governance; f) opening or movement of deposit and payment accounts; g) operational limits; h) cash handling and cash‑based operations; i) custody of documents and information required by the Central Bank of Brazil; j) capital, reserve funds, special or earmarked patrimonies, liquidity ratios, compulsory collections and mandatory resource allocations, operations or services; k) ombudsman services; l) granting, renewal, assignment and classification of credit and leasing operations and provision for losses on such operations; m) administration of third‑party resources and custody of securities and other assets and financial instruments; n) centralised deposit and registration activities; o) application of resources held in payment accounts; p) use of payment instruments; q) relationship between the persons mentioned in the caput of art. 2 of this Law and their clients and users of financial services and products.

Paragraph 1. For the purposes of this Chapter, obstruction of inspection consists of denying or hindering access to data and information systems and not displaying or providing documents, books and accounting records, including in electronic form, within the deadlines, forms and conditions established by the Central Bank of Brazil in the exercise of the inspection activity attributed to it by law.

Paragraph 2. It is prohibited for financial institutions to:

1. issue debentures and beneficiary parts; and
2. acquire real estate not intended for their own use, except those received in liquidation of loans of difficult or doubtful solution or when expressly authorised by the Central Bank of Brazil, observing the norm issued by the National Monetary Council.

Article 4

Serious infractions are those that produce or may produce any of the following effects:

1. cause damage to liquidity, solvency or soundness or assume risk incompatible with the patrimonial structure of the person mentioned in the caput of art. 2 of this Law;
2. contribute to generating indiscipline in the financial market or affect the stability or regular functioning of the National Financial System, the Consortia System, the Brazilian Payments System or the capital market;
3. hinder knowledge of the real patrimonial or financial situation of the person mentioned in the caput of art. 2 of this Law;
4. severely affect the purpose and continuity of activities or operations within the National Financial System, the Consortia System or the Brazilian Payments System.

Section III – Penalties

Article 5

The following penalties are applicable to the persons mentioned in art. 2 of this Law, either singly or cumulatively (See Law No. 14,286, of 2021):

1. public admonition;
2. fine;
3. prohibition from providing certain services to the institutions mentioned in the caput of art. 2 of this Law;
4. prohibition from carrying out certain activities or operation modalities;
5. disqualification from acting as administrator and from holding positions in bodies provided for in statutes or articles of incorporation of the person mentioned in the caput of art. 2 of this Law;
6. revocation of authorisation to operate.

Article 6

The public admonition penalty shall consist of publishing a text specified in the condemning decision, in the form and under the conditions established by regulation.

Paragraph 1. The text mentioned in the caput shall contain, at a minimum, the name of the penalised party, the illicit conduct practiced and the imposed sanction.

Paragraph 2. News of the imposition of the public admonition and the text specified in the condemning decision shall be published on the electronic site of the agency or autarchy that applied the penalty, without prejudice to other forms of publication provided for in regulation.

Paragraph 3. The publication referred to in the caput shall be carried out at the expense of the infractor, who shall be subject to the fine provided for in Article 18 of this Law in case of non‑compliance.

Article 7

The fine penalty shall not exceed the greater of the following amounts:

1. 0.5 % (five‑tenths of one percent) of the revenue from financial services and products measured in the year preceding the consummation of the infraction, or, in the case of a continuing offence, of the consummation of the last infraction; or
2. R$ 2,000,000,000.00 (two billion reais).

Paragraph 1. The revenue from financial services and products mentioned in item 1 shall be calculated by aggregating:

a) income from credit operations; b) income from leasing, which shall be deducted from profits on the sale of leased assets, depreciation of leased assets and adjustments for insufficiency or subsequent depreciation of leased assets; c) income from foreign‑exchange operations, which shall be deducted from foreign‑exchange operation expenses; d) income from securities, securities‑based instruments and derivative financial instruments, which shall be deducted from profits on fixed‑income and variable‑income securities and from income on derivative operations; e) income from service provision; and f) other operational revenues, which shall be deducted from profits in asset sale or transfer operations, from recovery of credits written‑off as losses, from recovery of charges and expenses, from reversal of operational provisions and from positive market‑value adjustments on securities and derivative financial instruments.

Paragraph 2. The competent agency or autarchy may issue a complementary norm that identifies the accounting accounts that will compose the revenue from financial services and products mentioned in item 1.

Paragraph 3. Fines shall be paid by collection to the Central Bank of Brazil within 30 (thirty) days from the date of the notice to pay.

Paragraph 4. Credits arising from the conviction of the penalised party to pay compensation in a public civil action, brought in benefit of the party’s clients and other creditors, and those from the Credit Guarantee Fund (FGC) or other reimbursement mechanisms approved by the Central Bank of Brazil or the Securities and Exchange Commission, if any, shall have priority over credits arising from the application of the fine penalty.

Paragraph 5. In case of bankruptcy, extrajudicial liquidation or any other form of creditor proceeding of the penalised party, the credits of the Central Bank of Brazil arising from the fine penalty shall be subordinated.

Paragraph 6. The imposition of a fine by the Central Bank of Brazil exceeding R$ 50,000,000.00 (fifty million reais) shall be automatically submitted to review by a collegial body provided for in its internal regulations, which shall include at least one (1) director of the Central Bank of Brazil, and only after such review shall the fine be considered effective and notified to the parties.

Article 8

The disqualification penalty shall entail the prohibition from holding positions whose exercise depends on authorisation by the Central Bank of Brazil.

Paragraph 1. The Central Bank of Brazil shall notify, within up to 5 (five) days, the institution mentioned in the caput of art. 2 of this Law in which the disqualified person acts as administrator or member of a body provided for in the statutes or articles of incorporation, so that it complies with the provision of paragraph 3 of this article, by reason of the disqualification penalty.

Paragraph 2. The compliance period for the disqualification penalty shall commence from the date on which the Central Bank of Brazil receives from the disqualified person or from each institution mentioned in the caput of art. 2 of this Law a communication that the person has effectively been removed from the position for which authorisation was granted, accompanied by supporting documents.

Paragraph 3. The institution mentioned in the caput of art. 2 of this Law in which the penalised person acts as administrator or holds a position in a body provided for in its statutes or articles of incorporation shall remove him/her from the position within 60 (sixty) days from receipt of the notification referred to in paragraph 1, and shall communicate the fact to the Central Bank of Brazil within 5 (five) days from the effective removal.

Paragraph 4. If the periods mentioned in paragraph 3 elapse without the required communication referred to in paragraph 2, the penalised persons and the omitting institutions shall be subject to the fine provided for in Article 18 of this Law.

Paragraph 5. The compliance period for the disqualification penalty shall be automatically suspended whenever the terms of the decision that imposed it are violated, without prejudice to the imposition of applicable penalties.

Article 9

The penalties listed in items III, IV, V and VI of the caput of Article 5 shall be limited to cases where a serious infraction is verified.

Paragraph 1. The duration of the penalties listed in items III, IV and V shall not exceed a period of 20 (twenty) years.

Paragraph 2. When the revocation of authorisation to operate is applied, the penalised institution shall remain under supervision of the Central Bank of Brazil while it retains in its patrimony passive operations exclusive to the institution mentioned in the caput of art. 2 of this Law, and the Central Bank of Brazil may determine the adoption of measures it deems necessary for the removal of the institution from the National Financial System, the Consortia System or the Brazilian Payments System, non‑compliance with which shall entail the application of the fine provided for in Article 18 of this Law.

Article 10

In applying the penalties established in this Chapter, the following shall be considered, insofar as they can be determined:

1. the seriousness and duration of the infraction;
2. the degree of injury or risk of injury to the National Financial System, the Consortia System, the Brazilian Payments System, the institution or third parties;
3. the advantage obtained or sought by the infractor;
4. the economic capacity of the infractor;
5. the value of the operation;
6. recidivism;
7. the cooperation of the infractor with the Central Bank of Brazil for the investigation of the infraction.

Section IV – Commitment Term

Article 11

The Central Bank of Brazil, at its discretion and when duly justified, with a view to serving the public interest, may refrain from initiating or may suspend, at any stage preceding the first‑instance decision, the administrative process intended to investigate an infraction provided for in this Chapter or in other legal and regulatory norms whose compliance it must supervise, if the investigated party signs a commitment term in which it obliges itself, cumulatively, to:

1. cease the investigated practice or its harmful effects;
2. correct the identified irregularities and compensate the damages;
3. comply with any other conditions agreed upon in the concrete case, with mandatory payment of a pecuniary contribution, observing the provisions of Article 10 of this Law.

Paragraph 1. The submission of a commitment‑term proposal does not suspend the progress of the administrative process.

Paragraph 2. In the hypothesis of an administrative process already initiated, the suspension shall apply only to the accused who signed the commitment term.

Paragraph 3. The decision of the Central Bank of Brazil on the signing of the commitment term, pursuant to this article, shall be taken by a collegial body provided for in its internal regulations.

Paragraph 4. The Central Bank of Brazil shall not sign a commitment term in the cases covered by Article 4 of this Law.

Article 12

The commitment term may include a penalty clause for total or partial non‑performance of the committed obligations, for debtor default, or for a special guarantee of a specific clause.

Article 13

The commitment term shall be published, in a clear and sufficient manner for comprehension of its clauses, on the electronic site of the Central Bank of Brazil within 5 (five) days from its signing.

Paragraph 1. The commitment‑term proposal shall be confidential.

Paragraph 2. The provisions of this Section do not prejudice the legal duty of the Central Bank of Brazil to communicate with the Public Prosecutor’s Office and other competent public bodies, pursuant to Article 9 of Complementary Law No. 105, of January 10, 2001.

Paragraph 3. The Public Prosecutor’s Office, in the exercise of its legal powers, may request information from the Central Bank of Brazil or access its databases concerning the commitment terms celebrated by the Central Bank of Brazil.

Article 14

The commitment term constitutes an extrajudicial enforceable title.

Single paragraph. The commitment term shall not constitute a confession regarding factual matters nor a recognition of the illicit nature of the conduct analysed.

Article 15

During the validity of the commitment term, the prescription periods referred to in Law No. 9,873, of November 23, 1999, shall be suspended, and the administrative procedure shall be archived if all conditions set therein are fulfilled.

Paragraph 1. Fulfilment of the commitment‑term conditions shall generate effects exclusively within the scope of the Central Bank of Brazil.

Paragraph 2. In the event of non‑compliance with the commitment, the Central Bank of Brazil shall adopt the administrative and judicial measures necessary to enforce the assumed obligations and shall determine the initiation or continuation of the administrative process in order to complete the investigation of infractions and apply the appropriate sanctions.

Section V – Coercive and Precautionary Measures

Article 16

The following measures and obligations may be applied to the persons referred to in Article 2 of this Law:

1. provision of information or clarifications necessary for the performance of its legal duties;
2. cessation of acts that prejudice or jeopardise the regular functioning of the person mentioned in the caput of art. 2 of this Law, the National Financial System, the Consortia System or the Brazilian Payments System; and
3. adoption of measures necessary for the regular functioning of the person mentioned in the caput of art. 2 of this Law, the National Financial System, the Consortia System or the Brazilian Payments System.

Article 17

Before the initiation or during the course of the sanctioning administrative process, when the requirements of plausibility of the allegations and risk of delay are present, the Central Bank of Brazil may, as a precautionary measure:

1. order the removal of any of the persons mentioned in item III of paragraph 1 of art. 2 of this Law;
2. prevent the investigated party from acting – in its own name or as mandatary or representative – as administrator or as member of the board of directors, supervisory board, audit committee or other bodies provided for in the statutes or articles of incorporation of the institution mentioned in the caput of art. 2 of this Law;
3. impose restrictions on the performance of certain activities or operation modalities by the person mentioned in the caput of art. 2 of this Law; or
4. order the supervised institution to replace:
   a) the independent auditor or the firm responsible for the accounting audit; or b) the entity responsible for the cooperative audit.

Paragraph 1. Provided that the sanctioning administrative process is instituted within 120 (one hundred and twenty) days from the date of the notice of the precautionary decision, the measures mentioned in this article shall retain their effectiveness until the first‑instance decision begins to produce effects, and may be reviewed, ex officio or at the request of the interested party, if the circumstances that gave rise to them cease.

Paragraph 2. If the sanctioning administrative process is not initiated within the period set out in paragraph 1 of this article, the precautionary measures shall automatically lose their effectiveness and cannot be reapplied unless the factual circumstances that generated them are modified.

Paragraph 3. The precautionary decision shall be subject to challenge, without suspensive effect, within 10 (ten) days.

Paragraph 4. The decision that judges the challenge shall be appealable, as a matter of last resort, to the Financial System Resources Council (see Decree No. 9,889, of 2019).

Paragraph 5. The appeal referred to in paragraph 4 shall be received only with devolutive effect and must be filed within 10 (ten) days.

Article 18

Failure to comply with the measures provided in this Section shall subject the infractor to a daily coercive fine, which shall not exceed the greater of the following amounts:

1. 1/1,000 (one thousandth) of the revenue from financial services and products mentioned in item 1 of the caput of Article 7 of this Law; or
2. R$ 100,000.00 (one hundred thousand reais).

Paragraph 1. The fine referred to in the caput shall be paid by collection to the Central Bank of Brazil within 10 (ten) days from the date of the notice to pay.

Paragraph 2. The decision imposing the coercive fine, if not subject to the challenge and appeal provided for in paragraphs 3 and 4 of Article 17 of this Law, shall be subject to challenge, without suspensive effect, within 10 (ten) days.

Paragraph 3. The decision that judges the challenge shall be appealable, as a matter of last resort, within the scope of the Central Bank of Brazil.

§ 4 The appeal referred to in § 3 shall be received only with devolutive effect and must be filed within a period of 10 (ten) days.

Section VI

Of the Procedure of the Process

Art. 19 The sanctioning administrative process shall be instituted in cases where there are indications of the occurrence of an infraction provided for in this Chapter or in other legal and regulatory norms whose compliance is supervised by the Central Bank of Brazil.

§ 1 The Central Bank of Brazil may refrain from instituting a sanctioning administrative process if the injury to the protected legal asset is considered low, and shall use other instruments and supervisory measures it deems more effective, observing the principles of purpose, reasonableness and efficiency.

§ 2 The initiation of the sanctioning administrative process shall occur by means of citation.

§ 3 The procedural acts and terms may be formalized, communicated and transmitted electronically, in accordance with the provisions of this Law, in regulations issued by the Central Bank of Brazil and in specific legislation.

§ 4 Natural and legal persons subject to the provisions of this Law shall keep updated with the Central Bank of Brazil their address, telephone and electronic address, as well as those of their attorney, when applicable, and shall monitor the progress of the process.

§ 5 The Central Bank of Brazil shall establish guidelines, in regulation, for the application of the provision in § 1 of this article.

Art. 20

The accused shall be cited to present a defense within a period of 30 (thirty) days, at which time he/she must attach the documents intended to prove his/her allegations and indicate any other evidence he/she wishes to produce, under penalty of preclusion.

§ 1 The citation shall contain:

I – the identification of the accused;

II – the indication of the facts attributed to the accused;

III – the purpose of the citation;

IV – the deadline for the presentation of the defense;

V – the information that the process will continue regardless of his/her appearance;

VI – the indication of the place and time for viewing the case files; and

VII – the obligation provided for in § 4 of art. 19 of this Law.

§ 2 The accused who, although cited, does not present a defense within the period provided in this article shall be considered in default.

Art. 21 The citation may be effected by notice in the process, by postal means or electronically.

§ 1 When the place where the accused is located is unknown, uncertain or inaccessible, or in case of evasion, the citation shall be effected by publishing a notice in the Official Gazette of the Union or on the Central Bank of Brazil's website.

§ 2 The citation shall be considered effected on the date:

I – of the knowledge by the accused or by an attorney he has appointed;

II – of delivery at the recipient's address;

III – of access to the Central Bank of Brazil's electronic system;

IV – when refusal is recorded; or

V – of the publication of the notice in the Official Gazette of the Union or on the Central Bank of Brazil's website.

§ 3 The citation shall be considered effected on the sixth day following the availability of the act in the Central Bank of Brazil's electronic system if the interested party does not access it within that period.

Art. 22

In addition to the forms provided in the main clause of art. 21 of this Law, the notification of other procedural acts may be carried out by making them available on the Central Bank of Brazil's website.

§ 1 The notification shall be considered effected on the date:

I – of the knowledge by the accused or by an attorney he has appointed;

II – of delivery at the recipient's address, receipt electronically or access to the Central Bank of Brazil's electronic system;

III – when refusal is recorded; or

IV – of the making available on the Central Bank of Brazil's website.

§ 2 The notification shall be considered effected on the sixth day following the availability of the act in the Central Bank of Brazil's electronic system if the interested party does not access it within that period.

§ 3 Electronic availability in the manner established by this article replaces any other means of official publication for any legal effects, except when a law establishes a specific form.

Art. 23 Preclusion occurs when the accused performs a certain procedural act or when the deadline provided for its performance has elapsed.

Art. 24

Deadlines shall be counted continuously, excluding the first day and including the due day.

§ 1 The start day of the deadline shall be considered:

I – the date of knowledge by the interested party or by his attorney;

II – the date of delivery at the recipient's address or receipt electronically;

III – the sixth day following the date of availability of the act in the Central Bank of Brazil's electronic system or the date of access to that system, whichever occurs first;

IV – the sixth day following the availability of the act on the Central Bank of Brazil's website; or

V – the thirty‑first day following the date of publication of the citation notice in the Official Gazette of the Union or on the Central Bank of Brazil's website.

§ 2 The first day of the count and the due day of the deadline, if they coincide with a weekend or holiday, shall be extended to the next business day.

Art. 25 The Central Bank of Brazil shall, with justification, reject illicit, irrelevant, unnecessary or dilatory evidence and shall only provide the information that is in its possession.

Art. 26 The Central Bank of Brazil may take the testimony of any person who can contribute to the investigation of the facts under investigation.

Art. 27

First‑instance decisions in an administrative process of the Central Bank of Brazil instituted against a person mentioned in art. 2 of this Law shall be taken by a collegiate body provided for in its internal regulations, of which, in the case of a serious infraction, at least one (1) director of the Central Bank of Brazil shall be part.

Sole paragraph. The sessions of the collegiate body referred to in the main clause of this article shall be public, but access by third parties may be restricted due to the public interest involved.

Art. 28 Condemnatory or acquittal decisions shall be published, in summary, on the Central Bank of Brazil's website.

§ 1 If there are risks to the soundness of the institution or the National Financial System, the Consortium System or the Brazilian Payments System, the Central Bank of Brazil, at its discretion and by reasoned decision, may refrain from publishing the decision until it becomes final.

§ 2 The decision that imposes the penalty of public admonition shall only be published when it becomes final.

Art. 29

An appeal against condemnatory decisions shall be allowed within a period of 30 (thirty) days, received with devolutive and suspensive effects, without prejudice to the effectiveness of the measures determined by the Central Bank of Brazil pursuant to art. 17 of this Law.

§ 1 The appeal petition shall be submitted to the Central Bank of Brazil and shall be addressed to the National Financial System Resources Council, the final administrative appellate instance, for judgment of the appeal.

§ 2 The standing to appeal is exclusive to the penalized party, and aggravation of the penalty due to the appeal is prohibited.

§ 3 The sessions and decisions of the National Financial System Resources Council shall be public.

§ 4 The appeals pending before the National Financial System Resources Council shall be subject to the provisions of §§ 3 and 4 of art. 19 and arts. 21, 22, 23 and 24 of this Law.

§ 5 The appeal filed against a decision that imposes the penalties provided for in items IV, V or VI of art. 5 of this Law shall be received with devolutive effect, and the appellant may request suspensive effect from the authority that issued the decision, pursuant to regulations issued by the Central Bank of Brazil.

Section VII

Of the Administrative Agreement in the Supervision Process

Art. 30 The Central Bank of Brazil may enter into an administrative agreement in the supervision process with natural or legal persons who confess the commission of an infraction of the legal or regulatory norms whose compliance it supervises, with extinction of its punitive action or reduction of 1/3 (one third) to 2/3 (two thirds) of the applicable penalty, provided there is effective, full and permanent cooperation for the investigation of the facts, which results in usefulness for the process, especially:

I – the identification of other parties involved in the commission of the infraction, when applicable;

II – the obtaining of information and documents that prove the reported or investigated infraction.

§ 1 The proposal for an administrative agreement in the supervision process shall remain confidential until the agreement is executed.

§ 2 The agreement referred to in the main clause of this article may only be executed if, cumulatively, the following requirements are met:

I – the legal entity is the first to qualify with respect to the reported or investigated infraction;

II – involvement in the reported or investigated infraction ceases completely from the date the agreement is proposed;

III – the Central Bank of Brazil does not have sufficient evidence to ensure the administrative conviction of the natural or legal persons at the time the agreement is proposed; and

IV – the natural or legal person confesses participation in the illicit act, cooperates fully and permanently with the investigations and the administrative process and appears, at its own expense, whenever requested, at all procedural acts, until its conclusion.

§ 3 The requirement set forth in item I of § 2 of this article does not apply to natural persons.

§ 4 The legal entity that does not fulfill only the provision in item I of § 2 of this article may enter into an administrative agreement in the supervision process, in which case it may benefit exclusively from a reduction of 1/3 (one third) of the penalty applicable to it.

§ 5 The execution of the administrative agreement in the supervision process by the Central Bank of Brazil shall suspend the administrative prescription period with respect to the signing proponent.

§ 6 The administrative agreement in the supervision process entered into by the Central Bank of Brazil, concerning the commission of an infraction of the legal or regulatory norms whose compliance it supervises, does not affect the action of the Public Prosecutor's Office and other public bodies within the scope of their respective competencies.

§ 7 The decision on the signing of the administrative agreement in the supervision process by the Central Bank of Brazil, under the terms of this article, shall be taken by a collegiate body provided for in its internal regulations.

Art. 31 The administrative agreement in the supervision process shall be published, in a clear and sufficient manner for understanding its clauses, on the Central Bank of Brazil's website, within a period of 5 (five) days counted from its signing.

§ 1 The rejected proposal for an administrative agreement in the supervision process shall not constitute a confession regarding the factual matter, nor a recognition of the illicitness of the conduct analyzed, and no disclosure shall be made of it.

§ 2 The provision in § 1 of art. 30 of this Law does not prejudice the legal duty of the Central Bank of Brazil to communicate to the competent public bodies, pursuant to art. 9 of Complementary Law No. 105, of January 10, 2001, as soon as the proposal for an administrative agreement in the supervision process is received.

§ 3 The Public Prosecutor's Office, based on the powers attributed to it by law, may request information or access to the Central Bank of Brazil's computerized system regarding the administrative agreements in the supervision process entered into by the Central Bank of Brazil, without confidentiality being opposable and without prejudice to the provision of art. 9 of Complementary Law No. 105, of January 10, 2001.

§ 4 The Central Bank of Brazil shall maintain a permanent communication forum with the Public Prosecutor's Office, including through a technical cooperation agreement, to comply with the provisions of this article and art. 9 of Complementary Law No. 105, of January 10, 2001.

Art. 32 The Central Bank of Brazil, for the purpose of declaring compliance with the administrative agreement in the supervision process, shall evaluate cumulatively:

I – the fulfillment of the conditions stipulated in the agreement;

II – the effectiveness of the cooperation provided;

III – the good faith of the infringer regarding compliance with the agreement.

§ 1 The declaration of compliance with the administrative agreement in the supervision process by the Central Bank of Brazil shall result, with respect to the infringer who entered into the agreement, in the extinction of the punitive administrative action or in the application of the penalty reduction factor.

§ 2 In the event of non‑compliance with the administrative agreement in the supervision process, the beneficiary shall be prevented from entering into a new administrative agreement in the supervision process for a period of 3 (three) years, counted from the Central Bank of Brazil's knowledge of the non‑compliance.

CHAPTER III

THE SANCTIONING ADMINISTRATIVE PROCESS IN THE SCOPE OF ACTION OF THE SECURITIES AND EXCHANGE COMMISSION

Single Section

Preliminary Provisions

Art. 33 This Chapter provides for the sanctioning administrative process within the scope of the Securities and Exchange Commission and amends Law No. 6,385, of December 7, 1976.

Sole paragraph. The rules contained in this Chapter shall apply to the infractions provided for in Law No. 9,613, of March 3, 1998, as applicable, when investigated by the Securities and Exchange Commission, maintaining the penalties provided for in the specific law.

Art. 34 To sanctioning administrative processes conducted within the scope of the Securities and Exchange Commission shall apply, as applicable, the provisions of § 3 of art. 19 and arts. 21, 22, 24, 25, 29, 30, 31 and 32 of this Law, subject to regulations issued by the Securities and Exchange Commission.

§ 1 The appeal referred to in § 4 of art. 11 of Law No. 6,385, of December 7, 1976, shall be received with devolutive and suspensive effects.

§ 2 The appeal filed against a decision that imposes the penalties provided for in items IV, V, VI, VII and VIII of art. 11 of Law No. 6,385, of December 7, 1976, shall be received with devolutive effect, and the appellant may request suspensive effect from the authority that issued the decision, pursuant to regulations issued by the Securities and Exchange Commission.

§ 3 The compliance period for the disqualification penalty shall be counted from the date on which the Securities and Exchange Commission receives, from the disqualified person or from each entity in which he acted as administrator or fiscal counselor, a communication that there has been an effective removal from the position, accompanied by documentary evidence of the fact.

§ 4 The compliance period for the temporary disqualification penalty shall be automatically suspended whenever the terms of the decision that applied it are violated, without prejudice to the imposition of applicable penalties.

Art. 35 Law No. 6,385, of December 7, 1976, shall come into force with the following amendments:

“Art. 9 …

§ 4

In the investigation of infractions of the securities market legislation, the Commission shall prioritize serious infractions, whose sanction provides greater educational and preventive effect for market participants, and may refrain from instituting the sanctioning administrative process, considering the low relevance of the conduct, the low magnitude of the injury to the protected legal asset and the use of other instruments and supervisory measures it deems more effective.

… ” (NR)

“Art. 11.

The Securities and Exchange Commission may impose on violators of the norms of this Law, of Law No. 6,404, of December 15, 1976 (Corporations Law), of its resolutions and of other legal norms whose compliance it supervises, the following penalties, singly or cumulatively:

…

III – (repealed);

IV – temporary disqualification, up to a maximum of 20 (twenty) years, for holding the position of administrator or fiscal counselor of a publicly traded company, of an entity of the distribution system or of other entities that depend on authorization or registration with the Securities and Exchange Commission;

…

VI – temporary disqualification, up to a maximum of 20 (twenty) years, for exercising the activities covered by this Law;

…

§ 1 The fine shall, for purposes of measurement, observe the principles of proportionality and reasonableness, the economic capacity of the violator and the reasons that justify its imposition, and shall not exceed the greater of these amounts:

I – R$ 50,000,000.00 (fifty million reais);

II – double the amount of the issuance or the irregular operation;

III – three (3) times the amount of the economic advantage obtained or the loss avoided due to the illicit act; or

IV – double the loss caused to investors …

…

§ 2 In cases of recidivism, a fine of up to three times the amounts set in § 1 of this article may be applied.

§ 3 The penalties provided for in items IV, V, VI, VII and VIII of the main clause of this article shall only be applied in cases of serious infraction, as defined in the regulations of the Securities and Exchange Commission, or in cases of recidivism.

…

§ 5 The Securities and Exchange Commission, after an analysis of convenience and opportunity, with a view to serving the public interest, may refrain from instituting or may suspend, at any stage preceding the first‑instance decision, the administrative procedure intended to investigate an infraction provided for in the legal and regulatory norms whose compliance it supervises, if the investigated party signs a term of commitment in which it undertakes to:

…

§ 7 The term of commitment shall be published on the Securities and Exchange Commission's website, with a description of the deadline for compliance with the obligations eventually assumed, and shall constitute an extrajudicial enforceable title.

…

§ 11 The fine applied for non‑execution of an order of the Securities and Exchange Commission, under the terms of item II of the main clause and item IV of § 1 of art. 9 of this Law, regardless of the administrative process provided for in item V of the main clause of art. 9 of this Law, shall not exceed, per day of delay in its compliance, the greater of these amounts:

I – 1/1,000 (one thousandth) of the total individual or consolidated turnover of the economic group, obtained in the fiscal year preceding the imposition of the fine; or

II – R$ 100,000.00 (one hundred thousand reais).

…

§ 13 In addition to the penalties provided for in the main clause of this article, the Securities and Exchange Commission may prohibit the accused from contracting, for up to 5 (five) years, with official financial institutions and from participating in bidding processes whose object is acquisitions, disposals, execution of works and services and concessions of public services, within the scope of the federal, state, district and municipal public administration and entities of the indirect public administration.

§ 14 The credits arising from the conviction of the penalized party to pay compensation in a public civil action brought in favor of investors and other creditors of the penalized party and the credits of the Credit Guarantee Fund (FGC) or other reimbursement mechanisms approved by the Central Bank of Brazil or the Securities and Exchange Commission, if any, shall have priority over the credits arising from the application of the fine penalty.

§ 15 In the event of bankruptcy, extrajudicial liquidation or any other form of creditors' proceeding of the penalized party, the credits of the Securities and Exchange Commission arising from the application of the fine penalty referred to in item II of the main clause of this article shall be subordinate.

…

Art. 27-C

Carry out simulated operations or execute other fraudulent maneuvers intended to raise, maintain or lower the quotation, price or traded volume of a security, with the aim of obtaining undue advantage or profit, for oneself or others, or to cause damage to third parties:

… ” (NR)

Art. 27-D

Use relevant information that one possesses, not yet disclosed to the market, which is capable of providing, for oneself or others, undue advantage, through trading, in one's own name or that of third parties, of securities:

… ” (NR)

§ 1 The same penalty applies to anyone who passes on confidential information relating to a relevant fact that they accessed because of a position or role they hold in an issuer of securities or because of a commercial, professional or trust relationship with the issuer.

§ 2 The penalty is increased by 1/3 (one third) if the agent commits the crime provided for in the main clause of this article by using relevant information that they know and must keep confidential.

…

Art. 27-E

Exercise, even gratuitously, in the securities market, the activity of portfolio manager, autonomous investment agent, independent auditor, securities analyst, fiduciary agent or any other position, profession, activity or function, without being, for that purpose, authorized or registered with the competent administrative authority, when required by law or regulation:

… ” (NR)

CHAPTER IV

FINAL AND TRANSITIONAL PROVISIONS

Art. 36 The Central Bank of Brazil shall regulate the penalties, coercive measures, alternative dispute resolution mechanisms and the sanctioning administrative process provided for in Chapter II of this Law, and shall provide for:

I – the gradation of penalties of fines, prohibition to provide certain services, prohibition to carry out certain activities or operation modalities and disqualification to act as administrator or to hold a position in a body provided for in the statutes or articles of incorporation of the person mentioned in the main clause of art. 2 of this Law;

II – the coercive fine and the criteria to be considered for its definition, taking into account its objectives;

III – the admissibility, timing and manner of celebration of the term of commitment and the administrative agreement in the supervision process and, in the case of the latter instrument, the criteria to declare the extinction of the administrative punitive action and to apply the penalty reduction;

IV – the procedure and deadlines of the sanctioning administrative process within the scope of the Central Bank of Brazil.

Sole paragraph. The provisions of Law No. 9,784, of January 29, 1999, shall apply subsidiarily to sanctioning administrative processes in the scope of action of the Central Bank of

Art. 37. Except for the provisions of articles 2, 3, 4, 5, 6, 7, 8, 9 and 10 of this Law, the rules established in Chapters II and IV of this Law shall, where applicable, apply to the offenses provided for in Law No. 9,613 of 3 March 1998, when investigated by the Central Bank of Brazil.

Art. 38. Except for the provisions of articles 2, 3 and 4 and items I, III and V of the heading of article 5 of this Law, the rules established in Chapters II and IV of this Law shall, where applicable, apply to the offenses provided for in Decree No. 23,258 of 19 October 1933, in Decree‑Law No. 9,025 of 27 February 1946, in Law No. 4,131 of 3 September 1962, in Decree‑Law No. 1,060 of 21 October 1969, in Provisional Measure No. 2,224 of 4 September 2001, and in Law No. 11,371 of 28 November 2006, when investigated by the Central Bank of Brazil.

Art. 39. The Central Bank of Brazil and the Securities and Exchange Commission shall coordinate their activities to ensure compliance with their responsibilities with the greatest efficiency and the lowest cost for the regulated entities.

Art. 40. The offenses provided for in articles 1 and 2 of Decree No. 23,258 of 19 October 1933, and the under‑reporting of export‑cover values that occurred up to 3 August 2006, are subject to the provisions of this Law. (Repealed by Law No. 14,286 of 2021) (In force)

Art. 41. Decree No. 23,258 of 19 October 1933 shall henceforth apply with the following amendments:

"Art. 6
The offense provided for in art. 3 of this Decree shall be punished with a fine ranging from 5 % (five percent) to 100 % (one hundred percent) of the operation value.
............................................................................" (NR)

"Art. 6‑A. The National Monetary Council shall discipline the provisions of articles 1, 2 and 3 of this Decree and may establish the grading of the fine referred to in the heading of art. 6 of this Decree."

Art. 42. Article 10 of Decree‑Law No. 9,025 of 27 February 1946 shall henceforth read as follows:

"Art. 10.
Private compensation of credits or values of any nature is prohibited, except in situations expressly provided for in regulation of the Central Bank of Brazil, with the responsible parties subject to the penalties provided for by law." (NR) (Repealed by Law No. 14,286 of 2021) (In force)

Art. 43. Private compensation of credits or values of any nature referred to in article 10 of Decree‑Law No. 9,025 of 27 February 1946, when not carried out in the situations expressly provided for in regulation of the Central Bank of Brazil, subjects the responsible parties to the provisions of this Law applicable pursuant to article 38. (Repealed by Law No. 14,286 of 2021) (In force)

Art. 44. Law No. 4,131 of 3 September 1962 shall henceforth apply with the following amendments: (Repealed by Law No. 14,286 of 2021) (In force)

"Art. 23. .................................................................
....................................................................................
§ 2
It constitutes an individually attributable offense to the banking establishment, the broker and the client the declaration of false identity in the form, which, according to the model determined by the Central Bank of Brazil, shall be required for each operation, signed by the client and witnessed by the banking establishment and the broker intervening therein.

§ 3
It constitutes an offense of exclusive responsibility of the client the declaration of false information in the form referred to in § 2 of this article.

§ 4
It constitutes an offense attributable individually to the banking establishment and the broker intervening in the operation the classification, in disagreement with the norms fixed by the Central Bank of Brazil, of the information provided by the client in the form referred to in § 2 of this article.

§ 5
(Repealed).
............................................................................." (NR)

"Art. 25.
Banking establishments that fail to inform the exact amount of the operations performed shall be subject to a fine, pursuant to article 58 of this Law.
Single paragraph. (Repealed)." (NR)

Art. 45. To the offenses against Law No. 4,131 of 3 September 1962, and to the norms that regulate it, the provisions of article 38 of this Law apply. (Repealed by Law No. 14,286 of 2021) (In force)

Art. 46. To the offenses against Law No. 4,380 of 21 August 1964, and to the other legal and regulatory norms that govern the Housing Financial System and the institutions that compose it referred to in items I, II, III, IV, V and VI of article 8 of Law No. 4,380 of 21 August 1964, the provisions of this Law apply.

Art. 47. To the offenses against Law No. 4,728 of 14 July 1965, and to the other legal and regulatory norms that govern brokerage firms, the societies referred to in articles 11 and 12 of Law No. 4,728 of 14 July 1965, and investment banks, the provisions of this Law apply.

Art. 48. Article 21 of Law No. 4,829 of 5 November 1965 shall henceforth read as follows:

"Art. 21.
The institutions referred to in items II and III of the heading of article 7, in paragraph “c” of item I of § 1 of article 7 and in paragraphs “a”, “b”, “c” and “e” of § 1 of article 7 of this Law shall maintain applied resources in rural credit, observed in the form and conditions established by the National Monetary Council.

§ 1
The institutions referred to in the heading of this article that present deficiency in the application of resources in the period from 1 July 2016 to 30 June 2017 shall deposit the corresponding sums in the Central Bank of Brazil, remunerated in the form established by the National Monetary Council, for application to the purposes provided for in this Law.

§ 2
The institutions referred to in the heading of this article that present deficiency in the application of resources shall, from 1 July 2018 onward, with respect to the agricultural year that began on 1 July 2017, be subject to the financial costs established by the Central Bank of Brazil.

§ 3
(Repealed).

§ 4
(Repealed)." (NR)

Art. 49. The institutions referred to in items II and III of the heading of article 7, in paragraph “c” of item I of § 1 of article 7 and in paragraphs “a”, “b”, “c” and “e” of § 1 of article 7 of Law No. 4,829 of 5 November 1965 that present deficiency in the application of resources in rural credit are subject to the provisions of this Law.

Art. 50. The provisions of articles 53 to 69 of Law No. 10,406 of 10 January 2002 (Civil Code) apply to savings and loan associations authorized to operate by Decree‑Law No. 70 of 21 November 1966, insofar as they do not conflict with the provisions of Decree‑Law No. 70 of 21 November 1966; and the provisions of this Law apply to offenses against Decree‑Law No. 70 of 21 November 1966 and to the other legal and regulatory norms that govern savings and loan associations.

Art. 51. Article 19 of Law No. 6,024 of 13 March 1974 shall henceforth read as follows:

"Art. 19.
Extrajudicial liquidation shall be terminated:
a) (repealed);
b) (repealed);
c) (repealed);
d) (repealed).

I – by decision of the Central Bank of Brazil, in the following cases:
a) full payment of unsecured creditors;
b) change of the institution’s corporate purpose to an economic activity not part of the National Financial System;
c) transfer of the institution’s corporate control;
d) conversion into ordinary liquidation;
e) exhaustion of the institution’s assets, through total realization and distribution of the proceeds among creditors, even if full payment of the credits does not occur; or
f) illiquidity or difficult realization of the remaining assets of the institution, as recognized by the Central Bank of Brazil;

II – by declaration of bankruptcy of the institution.

§ 1
Once extrajudicial liquidation is terminated in the cases provided for in items “a”, “b”, “d”, “e” and “f” of paragraph I of the heading of this article, the Central Bank of Brazil shall communicate the termination to the competent commercial registry authority, which shall:
I – in the cases of items “b” and “d” of paragraph I, make the pertinent annotations;
II – in the cases of items “a”, “e” and “f” of paragraph I, record the termination of extrajudicial liquidation in the corresponding registry and replace, in the company’s denomination, the expression “In extrajudicial liquidation” with “Extrajudicial liquidation terminated”.

§ 2
Once extrajudicial liquidation is terminated in the cases provided for in paragraph I of the heading of this article, the prescription period for the institution’s obligations shall restart from the date of publication of the termination act.

§ 3
The termination of extrajudicial liquidation in the cases provided for in items “b” and “d” of paragraph I may be proposed to the Central Bank of Brazil after approval by a simple majority of those present at the general creditors’ assembly, by:
I – members or associates authorized by the general assembly; or
II – controllers.

§ 4
The general creditors’ assembly referred to in § 3 shall be chaired by the liquidator and may be voted on by the holders of credits registered in the general creditors’ register, with votes counted proportionally to the value of the credits of those present.

§ 5
Once extrajudicial liquidation is terminated in the cases provided for in paragraph I of the heading of this article, any remaining assets of the institution, if any, shall be returned:
I – to the last controlling shareholder or any participating shareholder of the controlling group, or, if it cannot be identified or located, to the largest shareholder or quota holder of the company; or
II – to any member, in the case of a credit cooperative.

§ 6
The persons referred to in § 5 may not refuse receipt of the remaining assets and shall be considered custodians of the assets received.

§ 7
In the hypothesis that the location of the persons referred to in § 5 is unknown, uncertain or inaccessible, or in the hypothesis of suspected concealment, the liquidator is authorized to deposit the remaining assets in favor of those persons before the court that would otherwise decree bankruptcy." (NR)

Art. 52. The heading of article 17 of Law No. 7,492 of 16 June 1986 shall henceforth read as follows:

"Art. 17.
To take or receive credit, in the capacity of any of the persons mentioned in article 25, or to grant credit operations prohibited, observing the provisions of article 34 of Law No. 4,595 of 31 December 1964:
............................................................................" (NR)

Art. 53. The heading of article 66 of Law No. 9,069 of 29 June 1995 shall henceforth read as follows:

"Art. 66.
Financial institutions and other institutions authorized to operate by the Central Bank of Brazil that present insufficiency in compulsory deposits or make overdrafts in the Bank Reserves account shall be subject to the financial costs established by the Central Bank of Brazil.
............................................................................" (NR)

Art. 54. Financial institutions and other institutions authorized to operate by the Central Bank of Brazil that present insufficiency in compulsory deposits or make overdrafts in the Bank Reserves account are subject to the provisions of this Law.

Art. 55. Paragraph 2 of article 16 of Law No. 9,613 of 3 March 1998 shall henceforth read as follows:

"Art. 16. ............................................................
....................................................................................
§ 2
An appeal against COAF decisions relating to the application of administrative penalties shall be filed with the Financial System Resources Council." (NR)

Art. 56. The prescription provided for in Law No. 9,873 of 23 November 1999 is suspended during the validity of the term of commitment referred to in paragraph 5 of article 11 of Law No. 6,385 of 7 December 1976, and articles 11, 12, 13, 14 and 15 of this Law.

Art. 57. Article 9 of Law No. 10,214 of 27 March 2001 shall henceforth read as follows:

"Art. 9
The violation of the legal and regulatory norms that govern the payment system subjects the clearing houses and settlement service providers, their administrators and members of fiscal, consultative and similar councils to the provisions of Law No. 6,385 of 7 December 1976 and other legal provisions.
I – (repealed);
II – (repealed).

Single paragraph. An appeal, within 30 (thirty) days, without suspensive effect, against decisions issued by the Central Bank of Brazil or the Securities and Exchange Commission, based on this article, shall be filed with the Financial System Resources Council." (NR)

Art. 58. The violation of the legal and regulatory norms that govern the payment system subjects the clearing houses and settlement service providers, their administrators and members of fiscal, consultative and similar councils to the provisions of this Law.

Art. 59. The heading of article 1 of Provisional Measure No. 2,224 of 4 September 2001 shall henceforth read as follows:

(Repealed by Law No. 14,286 of 2021) (In force)
"Art. 1
The failure to provide regulatory information required by the Central Bank of Brazil concerning Brazilian capital abroad and the provision of false, incomplete, incorrect or untimely information as defined in the current regulation constitute offenses subject to the punitive action of the Central Bank of Brazil, under the terms defined by the legislation in force.
............................................................................." (NR)

Art. 60. The failure to provide regulatory information required by the Central Bank of Brazil concerning Brazilian capital abroad and the provision of false, incomplete, incorrect or untimely information as defined in the current regulation constitute offenses subject to the application of this Law pursuant to article 38. (Repealed by Law No. 14,286 of 2021) (In force)

Art. 61. Article 7 of Law No. 11,371 of 28 November 2006 shall henceforth read as follows:

(Repealed by Law No. 14,286 of 2021) (In force)
"Art. 7
Violations of the norms that regulate the registration, at the Central Bank of Brazil, of foreign capital in national currency subject the responsible parties to the punitive action of the Central Bank of Brazil, under the terms defined by the legislation in force.
Single paragraph. (Repealed)." (NR)

Art. 62. Violations of the norms that regulate the registration, at the Central Bank of Brazil, of foreign capital in national currency subject the responsible parties to the provisions of this Law applicable pursuant to article 38. (Repealed by Law No. 14,286 of 2021) (In force)

Art. 63. Article 42 of Law No. 11,795 of 8 October 2008 shall henceforth read as follows:

"Art. 42.
To violations of the provisions of this Law and the regulatory norms applies the punitive action of the Central Bank of Brazil, under the terms defined by the legislation in force.
I – (repealed);
II – (repealed);
III – (repealed);
IV – (repealed);
V – (repealed);
VI – (repealed);
VII – (repealed);
VIII – (repealed).

Single paragraph. (Repealed)." (NR)

Art. 64. To violations of the provisions of Law No. 11,795 of 8 October 2008, and to the other regulatory norms of the Consortia System, the provisions of this Law apply.

Art. 65. Article 29 of Law No. 12,810 of 15 May 2013 shall henceforth read as follows:

"Art. 29.
The violation of the legal and regulatory norms that govern centralized deposit activities and the registration of financial assets and securities subjects the entities authorized to perform these activities, their administrators and members of fiscal, consultative and similar councils to the provisions of Law No. 6,385 of 7 December 1976, applicable by the Securities and Exchange Commission, and to the other legal provisions." (NR)

Art. 66. The violation of the legal and regulatory norms that govern centralized deposit activities and the registration of financial assets and securities subjects the entities authorized to perform these activities, their administrators and members of fiscal, consultative and similar councils to the provisions of this Law, applicable by the Central Bank of Brazil.

Art. 67. The heading of article 11 of Law No. 12,865 of 9 October 2013 shall henceforth read as follows:

"Art. 11.
Violations of the legal and regulatory norms that govern payment arrangements and payment institutions subject the payment arrangement initiator and the payment institution, their administrators and the members of their statutory or contractual bodies to the penalties provided for by the legislation in force.
.............................................................................." (NR)

Art. 68. Violations of the legal and regulatory norms that govern payment arrangements and payment institutions subject the payment arrangement initiator and the payment institution, their administrators and the members of their statutory or contractual bodies to the provisions of this Law.

Art. 69. Article 34 of Law No. 4,595 of 31 December 1964 shall henceforth read as follows:

"Art. 34.
It is prohibited for financial institutions to carry out credit operations with related parties.
I – (repealed);
II – (repealed);
III – (repealed);
IV – (repealed);
V – (repealed).

§ 1 – (Repealed).

§ 2 – (Repealed).

§ 3 – A related party to the financial institution, for the purposes of this article, is considered to be:
I – its controllers, natural or legal persons, pursuant to article 116 of Law No. 6,404 of 15 December 1976;
II – its directors and members of statutory or contractual bodies;
III – the spouse, partner and blood or affinity relatives up to the second degree of the persons mentioned in items I and II of this paragraph;
IV – natural persons with qualified shareholding in its capital;
V – legal persons:
a) with qualified shareholding in its capital;
b) in whose capital, directly or indirectly, there is qualified shareholding;
c) that have effective operational control or predominance in deliberations, regardless of shareholding;
d) that have a director or board member in common.

§ 4 – The prohibition set out in the heading of this article does not apply, respecting the limits and conditions established by regulation:
I – operations carried out under market‑compatible conditions, including limits, interest rates, grace periods, terms, required guarantees and risk‑classification criteria for provisioning probable losses and writing‑off without additional or differentiated benefits compared with operations granted to other clients of the same profile of the respective institutions;
II – operations with companies controlled by the Union, in the case of federal public financial institutions;
III – credit operations whose counter‑party is a financial institution belonging to the same prudential conglomerate, provided they contain a contractual subordination clause, observed pursuant to item V of article 10 of this Law, in the case of banking financial institutions;
IV – inter‑financial deposits regulated under item XXXII of the heading of article 4 of this Law;
V – obligations assumed between related parties arising from responsibility imposed on members of clearing and other participants of clearing houses or settlement service providers authorized by the Central Bank of Brazil or the Securities and Exchange Commission and their respective counterparties in operations conducted within the scope of those clearing houses or service providers;
VI – other cases authorized by the National Monetary Council.

§ 5 – Any operation that characterizes an indirect, simulated or third‑party interposition business, with the purpose of carrying out a prohibited operation under this article, is also considered to be carried out with a related party.

§ 6 – The National Monetary Council shall discipline the provisions of this article, including the definition of credit operation, limits and qualified shareholding." (NR)

Art. 70. The National Monetary Council, the Central Bank of Brazil and the Securities and Exchange Commission shall issue complementary norms to the provisions of this Law.

Art. 71. The following are repealed:

I – article 5‑A of Decree No. 23,258 of 19 October 1933;

II – paragraph 5 of article 23, the single paragraph of article 25 and article 58 of Law No. 4,131 of 3 September 1962;

III – article 43 of Law No. 4,380 of 21 August 1964;

IV – items I, II, III, IV and V of the heading and paragraphs 1 and 2 of article 34 and articles 35, 36, 42, 43 and 44 of Law No. 4,595 of 31 December 1964;

V – paragraph 6 of article 4 of Law No. 4,728 of 14 July 1965;

VI – paragraphs 3 and 4 of article 21 of Law No. 4,829 of 5 November 1965;

VII – Decree‑Law No. 448 of 3 February 1969;

VIII – item III of the heading of article 11 and paragraph 4 of article 26 of Law No. 6,385 of 7 December 1976;

IX – article 67 of Law No. 9,069 of 29 June 1995;

X – article 9 of Law No. 9,447 of 14 March 1997;

XI – item II of article 3 of Law No. 9,873 of 23 November 1999;

XII – articles 3 and 5 of Provisional Measure No. 2,224 of 4 September 2001;

XIII – the single paragraph of article 7 and article 12 of Law No. 11,371 of 28 November 2006;

XIV – item IV of the heading of article 7, items I, II, III, IV, V, VI, VII and VIII and the single paragraph of article 42 and articles 43 and 44 of Law No. 11,795 of 8 October 2008.

Art. 72. This Law enters into force on the date of its publication.

Brasília, 13 November 2017; 196th Independence and 129th Republic.

MICHEL TEMER

Henrique Meirelles Otávio Ribeiro Damaso

This text does not replace the version published in the Official Gazette on 14 Nov 2017.