Normative Instruction BCB No. 761 — Guidance on Reinforced Measures for Institutions in Jurisdictions with Strategic Deficiencies in FATF Recommendations

The Head of the Department of Financial System Regulation (Denor), using the authority granted by Art. 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil, annexed to Resolution BCB No. 340, of September 21, 2023, and considering the provisions of Arts. 9, 10, 13, 18, 39, 56, 59 of Circular No. 3,978, of January 23, 2020,

RESOLVES:

Art. 1 This Normative Instruction disseminates guidance on the reinforced measures to be observed by institutions authorized to operate by the Central Bank of Brazil in applying the provisions of Circular No. 3,978, of January 23, 2020, in the case of operations and business relationships with clients, correspondent financial institutions, and partners located in countries or territories with strategic deficiencies in the implementation of the recommendations of the Financial Action Task Force (FATF), according to lists and orientations published by that organization.

Art. 2 The reinforced measures, provided for in Art. 13, § 1, item I, of Circular No. 3,978, of 2020, include the internal procedures and controls related to the operations and business relationships provided for in Art. 1 of this Normative Instruction.

Sole Paragraph. The definition of the internal procedures and controls referred to in the caput covers internal risk assessment, procedures aimed at knowing clients, monitoring, selection and analysis of suspicious operations and situations, and procedures aimed at knowing their partners and outsourced service providers located in those countries or territories.

Art. 3 The adoption of the internal procedures and controls referred to in Art. 2 comprises, at a minimum, the following risk mitigation measures:

I - obtaining, verifying, and validating additional information regarding the qualification of clients, correspondent financial institutions, and partners;

II - complementary analysis of the economic or legal basis of the operation and the nature of the business relationship with clients, correspondent financial institutions, and partners;

III - in the case of partners and correspondent financial institutions, when unacceptable or unmitigable risks are identified:

a) assessment of the feasibility of starting or continuing the business relationship, carried out by the director responsible referred to in Art. 9 of Circular No. 3,978, of 2020; and

b) imposition of operational limits;

IV - in the case of clients, when risks considered unacceptable or unmitigable are identified:

a) assessment of the feasibility of starting the business relationship; and

b) imposition of operational limits;

V - reinforced monitoring of operations;

VI - increased frequency of updating registration information; and

VII - recording of analyses, conclusions, and adopted decisions, including detailed documentation supporting the decision.

Art. 4 This Normative Instruction enters into force on the date of its publication.

MARDILSON FERNANDES QUEIROZ

Head of Denor

NOTE 603/2026-BCB/DENOR, OF JULY 9, 2026

Proposes the issuance of a normative instruction to disseminate guidance on the reinforced measures to be observed in applying the provisions of Circular No. 3,978, of January 23, 2020, in the case of operations and situations involving clients, correspondent financial institutions, and partners established in countries and territories with strategic deficiencies in the implementation of the recommendations of the Financial Action Task Force (FATF).

Dear Head of Denor,

1. This Note supports the proposal for the issuance of a normative instruction to disseminate guidance on the reinforced measures to be observed by institutions authorized to operate by the Central Bank of Brazil in applying the provisions of Circular No. 3,978, of January 23, 2020, in the case of operations and situations involving clients, correspondent financial institutions, and partners established in countries and territories with strategic deficiencies in the implementation of the recommendations of the Financial Action Task Force (FATF).

2. Circular No. 3,978, of January 23, 2020, establishes the policy, internal procedures, and controls to be adopted by institutions authorized to operate by the Central Bank of Brazil aimed at preventing the use of the financial system for the practice of crimes of "money laundering" or concealment of assets, rights, and values, as provided for in Law No. 9,613, of March 3, 1998, and terrorism financing, provided for in Law No. 13,260, of March 16, 2016.

3. This Circular incorporates, in a more comprehensive manner, the risk-based approach, explicitly stating that authorized institutions must consider the client's risk profile and the nature of the business relationship in implementing the required internal procedures and controls, which must be compatible with the risk of using products and services in the practice of money laundering and terrorism financing.

4. However, the 2023 Mutual Evaluation Report of Brazil highlighted the importance of more explicitly specifying, in the aforementioned regulatory framework, guidance to regulated institutions on the need to adopt reinforced internal procedures and controls in the case of business relationships with clients, correspondent financial institutions, and partners located in countries or territories with strategic deficiencies in the implementation of the recommendations of the Financial Action Task Force (FATF).

5. Therefore, in order to align the regulatory framework on the prevention of money laundering and terrorism financing with the best practices recommended by FATF, I propose the issuance of a normative instruction aimed at:

I - guiding authorized institutions to reinforce the internal procedures and controls provided for in Circular No. 3,978, of 2020, in the case of operations and business relationships involving clients, correspondent financial institutions, and partners established in countries or territories with strategic deficiencies in the implementation of the recommendations of the Financial Action Task Force (FATF); and

II - disseminating measures that authorized institutions must consider in defining the reinforced internal procedures and controls.

6. I emphasize that the proposed normative instruction does not create autonomous obligations separate from Circular No. 3,978, of 2020, nor does it alter the sanctioning regime applicable. Its purpose is to increase interpretative clarity and standardize supervisory procedures regarding the treatment of higher-risk situations associated with jurisdictions classified by FATF.

7. Beyond improving the country's technical compliance level with FATF recommendations, the implementation of these measures will contribute to strengthening the effectiveness of Brazil's system for preventing money laundering and terrorism financing.

8. It is worth noting that, by virtue of Art. 5 of Law No. 13,874, of September 20, 2019, proposals for the issuance and alteration of normative acts of general interest to economic agents or users of provided services, issued by a body or entity of the federal public administration, including autarchies and public foundations, will be preceded by the realization of a regulatory impact analysis (RIA), which will contain information and data on the possible effects of the normative act to verify the reasonableness of its economic impact.

9. For its part, Decree No. 10,411, of June 30, 2020, which regulates this Law, in its Art. 4, items VI, establishes that the RIA may be waived, provided there is a reasoned decision by the competent body or entity, in the case of a normative act aimed at maintaining convergence with international standards.

10. In this sense, considering that the present proposal for a normative instruction aims to align the Central Bank of Brazil's regulation with the recommendations and findings of FATF, we understand that the realization of an RIA is waived.

For your consideration.

RENATO KIYOTAKA UEMA

Deputy Head

Agreed.

MARDILSON FERNANDES QUEIROZ

Head of the Department of Financial System Regulation