Resolution CMN No. 2592 — Dispenses on the Representation in the Country of Financial Institutions or Similar Entities Headquartered Abroad

RESOLUTION NO. 2592

Dispenses on the representation, in the Country, of financial institutions or similar entities headquartered abroad.

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 February 25, 1999, based on Article 4, item VIII, and considering the provisions of Article 64 of Decree-Law No. 2,627, of September 26, 1940, and Article 10, item X and paragraphs 1 and 2, of the aforementioned Law,

RESOLVES:

Article 1. Establish that the representation, in the Country, of a financial institution or similar entity headquartered abroad depends on prior authorization from the Central Bank of Brazil.

Sole Paragraph. The representation referred to in this article:

I - may only be exercised by natural or legal persons domiciled in the Country;

II - has as its object the conduct of commercial contacts and the transmission of information, of interest to the headquarters or branches abroad, prohibiting the practice of operations exclusive to financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Article 2. The Central Bank of Brazil shall establish the conditions to be observed for obtaining the authorization provided for in this Resolution, being authorized to issue norms and adopt measures deemed necessary for its execution.

Sole Paragraph. Upon receipt of information about the institution and the appointed representative(s), the Central Bank of Brazil may grant or deny the requested authorization, considering, among other factors, national interests and international agreements.

Article 3. The Central Bank of Brazil shall have unrestricted access to documents, reports, data, and information regarding the activities carried out by the representative(s) in the Country.

Article 4. The represented institution and its representative(s) are responsible, in accordance with current legislation, for the occurrence of situations that constitute the practice of prohibited operations under the terms of this Resolution.

Article 5. This Resolution enters into force on the date of its publication.

Brasília, February 25, 1999

Demosthenes Madureira de Pinho Neto
Acting President