Resolution CMN No. 4331 — Regulates the Local Currency Payment System (SML) and establishes guidelines for bilateral agreements among SML participants within Mercosul

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 May 23, 2014, based on Articles 3, item V, and 4, items V and VIII, of the aforementioned Law, Article 65, paragraph 2, of Law No. 9,069 of June 29, 1995, and considering the provisions contained in Law No. 11,803 of November 5, 2008, and Decree No. 6,374 of February 18, 2008,

R E S O L V E D:

Art. 1 This Resolution regulates the functioning of the Local Currency Payment System (SML) and establishes general guidelines for the celebration of bilateral agreements between participants of the said system within the scope of Mercosul.

Art. 2 For the purposes of this Resolution, the following definitions are adopted:

I - business day: any day of the year in which banking institutions are open for business simultaneously in Brazil and in the other contracting country;

II - recipient: any beneficiary of funds originating from the SML;

III - sender: any person responsible for the payment of a banking order in the SML;

IV - authorized institution: financial institution authorized by the central bank of its country of domicile to operate in the SML;

V - SML rates: the rates that will be used to convert the value of operations between the local currencies of the contracting countries;

VI - SML: an international payment system within the scope of Mercosul.

Sole paragraph. The authorized institution cannot be classified as a recipient or sender, except when operating in its own name in the SML.

Art. 3 International fund transfers are intermediated by authorized institutions, which are responsible for:

I - registering a payment order requested by a resident, domiciled, or headquartered sender in the country of the institution that registers the operation;

II - receiving funds originating from another country whose central bank is a contracting party and which relate to the payment order whose recipient has the same country of domicile as the institution receiving the funds;

III - canceling the registration of the payment order referred to in item I;

IV - returning the funds referred to in item II.

Art. 4 Financial institutions headquartered in the Country require authorization from the Central Bank of Brazil (BCB) to operate in the SML.

§ 1 Savings banks and banks holding reserve bank accounts, as well as other financial institutions that possess clearing accounts, may apply for the authorization referred to in the main text.

§ 2 To obtain authorization, the information systems of the requesting institution must be in compliance with the technical standards for electronic data communication within the National Financial System (SFN) established by the BCB, applicable to the SML.

Art. 5 Financial movements between the BCB and institutions authorized by it to operate in the SML, and between these and other SML operators resident, domiciled, and headquartered in the national territory, shall be processed exclusively in Brazilian reais.

Sole paragraph. Financial movements between authorized institutions and the BCB shall be processed exclusively through accounts maintained with it.

Art. 6 The receipt of funds by recipients shall occur in compliance with the payment order from the other central bank holding a bilateral agreement in the SML received by the BCB.

Sole paragraph. The BCB is not responsible for discrepancies of any nature between the values reported by the foreign central bank holding a bilateral agreement of the SML and those agreed upon between the latter and its clients.

Art. 7 The funds to be sent by senders through the SML shall be delivered to the BCB by authorized financial institutions on the business day following the registration of the operation.

§ 1 For the purpose of calculating the value in reais of orders registered in foreign currency, the exchange rate used shall be freely agreed upon between the authorized institution and its client.

§ 2 The intervening authorized institution in the operation shall deliver to the BCB:

I - if the operation is denominated in foreign currency, the equivalent values in reais to the quantity of the currency of the country of the other contracting central bank, calculated according to the SML rate, published daily by the BCB;

II - if the operation is denominated in reais, exactly the amount stipulated in the agreement, without the application of a conversion rate.

§ 3 Failure to observe the provisions of § 2 implies the rejection of the orders sent.

Art. 8 Operations conducted within the scope of the SML are the responsibility of the sender or recipient of the funds, who must observe the legality of the transaction, its economic justification, and the responsibilities defined in the respective documentation.

Art. 9 To finalize operations within the scope of the SML, authorized financial institutions must, at least:

I - identify the client (sender or recipient, as appropriate);

II - obtain documentary support that proves the operation.

Sole paragraph. In operations where the value in reais is equal to or less than US$3,000.00 (three thousand United States dollars), the presentation of the documentation referred to in item II of this article is waived.

Art. 10 Within the scope of the SML, the value in national currency regarding payment by the sender or receipt by the recipient must be, respectively:

I - debited to the deposit account held by the sender or credited to the deposit account held by the recipient;

II - paid or delivered by means of a crossed, non-endorsable nominative check; or

III - paid or delivered by means of Electronic Available Transfer (TED) or any other banking fund transfer order issued in the name of the sender, with the funds being debited from a deposit account held by them.

Sole paragraph. The provisions of items I, II, and III of this article are excepted for payments or receipts of values less than R$10,000.00 (ten thousand reais), which may be made in cash.

Art. 11 It is the exclusive responsibility of the authorized institution intervening in the operation processed through the SML for the correct processing and execution of transactions with its clients and with the BCB.

Art. 12 Financial settlement in reais within the scope of the SML shall observe, subsidiarily, the rules applicable to the Brazilian Payment System (SPB), particularly to the Reserve Transfer System (STR).

Art. 13 The BCB is authorized to issue the necessary norms for the fulfillment of the provisions of this Resolution, without prejudice to the provisions expressed in the agreements made and the content of the norms related to money laundering and the supervision of financial institutions.

Art. 14 This Resolution enters into force after thirty days have elapsed from its publication, when Resolution No. 3,608 of September 11, 2008, shall be revoked.

Alexandre Antonio Tombini
President of the Central Bank of Brazil