Resolution CMN No. 2194 — Establishes New Fine Values and Criteria for Application by the Central Bank of Brazil

RESOLUTION NO. 002194

Fixes new fine values and establishes criteria for their application by the Central Bank of Brazil.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4.595 of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on August 30, 1995, considering the provisions of paragraph 2 of Article 67 of Law No. 9.069 of June 29, 1995,

HAS DECIDED:

Article 1. The failure to provide information within the timeframes and conditions established by current legal and regulatory norms, and the provision of incorrect information to the Central Bank of Brazil constitute irregularities punishable by a fine, according to criteria established in this Resolution.

Article 2. In the case of failure to provide or late provision of information, a fine of R$150.00 (one hundred and fifty reais) will be applied, per business day of delay, starting from the expiration of the deadline for its submission.

Paragraph 1. The cumulative value of the fine resulting from the failure to provide or late provision of information, for an irregularity individually identified, shall not exceed R$100,000.00 (one hundred thousand reais) or 2% (two percent) of the institution's net equity, recorded in the balance sheet immediately preceding the regularization of the pending issue, with the lower value prevailing.

Paragraph 2. The cumulative value, referring to a set of irregularities of the same regulatory basis, shall not exceed R$300,000.00 (three hundred thousand reais) or 6% (six percent) of the institution's net equity, recorded in the balance sheet immediately preceding the regularization of the pending issue, with the lower value prevailing.

Paragraph 3. In no case shall the fine for failure to provide or late provision of information be less than R$150.00 (one hundred and fifty reais).

Article 3. In the case of rectification or provision of incorrect information, the fine shall be R$150.00 (one hundred and fifty reais), per business day, starting from the date on which the correct information should have been provided, observing the following limits:

I - the cumulative value, for an irregularity individually identified, shall not exceed R$4,500.00 (four thousand five hundred reais);

II - the cumulative value, referring to a set of irregularities of the same regulatory basis, shall not exceed R$300,000.00 (three hundred thousand reais) or 6% (six percent) of the institution's net equity, recorded in the balance sheet immediately preceding the regularization of the pending issue, with the lower value prevailing.

Paragraph 1. In no case shall the fine for rectified or incorrect information be less than R$150.00 (one hundred and fifty reais).

Paragraph 2. In the case of rectification resulting from a determination by the Central Bank of Brazil, the value of the fine and the limits referred to in this article shall be increased by 20% (twenty percent).

Paragraph 3. Differences lower, in modulus, than 2.5% (two and a half percent) of the originally reported values shall not be considered for the purpose of calculating the fine provided for in this article, and the Central Bank of Brazil may, at its discretion, dispense the institution from the obligation to rectify the information.

Article 4. The documentation that gave rise to the information shall be kept available to the Central Bank of Brazil for a period of 180 (one hundred and eighty) calendar days, counted from the date to which each information refers, except in cases where specific regulation requires longer periods.

Sole Paragraph - The impossibility of verifying or recalculating reported values for any date, within the period cited in this article, due to the lack of documentation, shall imply that the reported information is considered incorrect, thereby resulting in the application of the fines referred to in Article 3.

Article 5. Fines resulting from information related to investment funds shall be calculated considering the net equity of the respective administering institutions and those charged with them, prohibiting the transfer of the financial burden to the equity of the aforementioned funds.

Article 6. The fines provided for in this Resolution shall be debited in the Bank Reserves account of the titular institution.

Paragraph 1. Institutions that are not titular holders of the Bank Reserves account must enter into an agreement as provided in Circular No. 2,425 of June 15, 1994.

Paragraph 2. Until the agreement referred to in the preceding paragraph is executed, the penalized institution shall make the payment of the fine at the Regional Agency of the Central Bank within its jurisdiction.

Article 7. The fines provided for in this Resolution shall be applied without prejudice to the other penalties provided for in Article 44 of Law No. 4.595 of December 31, 1964.

Article 8. The Central Bank of Brazil may issue complementary norms necessary for the execution of the provisions of this Resolution.

Article 9. The provisions of this Resolution apply to financial institutions and other entities authorized to operate by the Central Bank of Brazil, excluding exchange-related infractions and those concerning consortium administrators, as referred to in Article 16 of Law No. 5.768 of December 20, 1971.

Article 10. This Resolution enters into force on the date of its publication.
Brasília, August 31, 1995

Gustavo Jorge Laboissière Loyola
President

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Obs.: Resent due to an error in the sole paragraph of Article 4.