Resolution Coaf No. 40, 22 November 2021 – Procedures for politically exposed persons for entities supervised by the Council for the Control of Financial Activities (Coaf)

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Provides procedures to be observed concerning politically exposed persons by those subject to the supervision of the Council for the Control of Financial Activities (Coaf) as per § 1 of art. 14 of Law No. 9,613 of 3 March 1998. Upon the entry into force of this resolution, Resolution No. 29, of 7 December 2017, of Coaf is revoked.

Published on 23/11/2021 15:05 Modified 5 years ago

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https://www.in.gov.br/en/web/dou/-/resolucao-coaf-n-40-de-22-de-novembro-de-2021-361264576

The PRESIDENT OF THE COUNCIL FOR THE CONTROL OF FINANCIAL ACTIVITIES – COAF, using the authority conferred by item IV of art. 9 of the Statute approved by Decree No. 9,663 of 1 January 2019, maintained in force, in accordance with Law No. 13,974 of 7 January 2020, and pursuant to art. 9 of Law No. 13,901 of 11 November 2019, makes public that the Plenary of the Council, in a session held on 7 October 2021, based on art. 8, items I, II and IV, of the said Statute, and considering the provisions of § 1 of art. 14 of Law No. 9,613 of 3 March 1998, resolved:

Art. 1
Persons subject to the supervision of the Council for the Control of Financial Activities – Coaf, in the manner provided for in arts. 9 and 14, § 1, of Law No. 9,613 of 3 March 1998, must adopt the measures set out in this Resolution for the monitoring of operations or proposals of operation that involve politically exposed persons.

§ 1 For the purposes of this Resolution, politically exposed persons are considered to be:

I – holders of elected mandates of the Executive and Legislative Powers of the Union;

II – occupants of positions in the Union Executive Power, namely:

a) Minister of State or equivalent;

b) Special Nature or equivalent;

c) President, Vice‑President and Director, or equivalents, of entities of the indirect public administration; and

d) Senior Management – DAS at level 6 or equivalent;

III – members of the National Council of Justice, the Supreme Federal Court, the Superior Courts, the Federal Regional Courts, the Regional Labor Courts, the Regional Electoral Courts, the Superior Council of Labor Justice and the Federal Justice Council;

IV – members of the National Council of the Public Prosecutor's Office, the Attorney‑General of the Republic, the Vice‑Attorney‑General of the Republic, the Attorney‑General of Labor, the Attorney‑General of Military Justice, the Deputy Attorneys‑General of the Republic and the State and Federal District Attorneys‑General;

V – members of the Union Court of Accounts, the Attorney‑General and the Deputy Attorneys‑General of the Public Prosecutor’s Office attached to the Union Court of Accounts;

VI – national Presidents and Treasurers of political parties, or equivalents;

VII – Governors and State and Federal District Secretaries, State and District Deputies, Presidents, or equivalents, of indirect public administration entities at the state and district level and Presidents of State and District Courts of Justice, Military, Accounts or equivalents;

VIII – Mayors, Councilors, Municipal Secretaries, Presidents, or equivalents, of indirect public administration entities at the municipal level and Presidents of Municipal Courts of Accounts or equivalents.

§ 2 For the purposes of this Resolution, the following are also considered politically exposed persons when located abroad:

I – heads of state or government;

II – senior‑level politicians;

III – occupants of senior‑level governmental positions;

IV – senior‑level judges and members of the higher judiciary;

V – senior‑level executives of public companies;

VI – senior‑level leaders of political parties.

§ 3 For the purposes of this Resolution, senior‑level leaders of entities of public or private international law are also considered politically exposed persons.

§ 4 To identify politically exposed persons falling under § 1 of this article or to confirm their classification under a scenario contemplated in that provision, official databases made available by the Public Authority must be consulted, such as the list of politically exposed persons maintained by the Office of the Comptroller General of the Union – CGU on the Transparency Portal, also available through the Financial Activities Control System – Siscoaf.

§ 5 For the identification of politically exposed persons falling under §§ 2 and 3 of this article or to confirm their classification under a scenario contemplated in those provisions, open sources and public or private databases must be used.

§ 6 The condition of being a politically exposed person persists for five years counted from the date the person ceases to hold a position contemplated in § 1, § 2 or § 3 of this article.

Art. 2 Regulated persons under Coaf must give special attention to operations or proposals of operations involving a politically exposed person, as well as their families, close collaborators and/or legal entities in which they participate, observing, in higher‑risk cases, at least the following procedures:

I – obtain prior authorization from the managing partner for the establishment of a business relationship or for the continuation of existing relationships;

II – carry out due diligence to establish the origin of the resources;

III – conduct reinforced and continuous monitoring of the business relationship.

§ 1 For the purposes of the caput, families are considered to be relatives in the direct line up to the second degree, the spouse, the partner, step‑children and step‑daughters.

§ 2 For the purposes of the caput, close collaborators are considered to be:

I – natural persons known to have joint ownership or partnership in private legal entities or in arrangements without legal personality, who appear as mandataries, even if by private instrument, or who have any other type of close public‑knowledge relationship with a politically exposed person;

II – natural persons who control private legal entities or arrangements without legal personality known to have been created for the benefit of a politically exposed person.

Art. 3 Those mentioned in Art. 1, as well as their administrators, who fail to comply with the duties set out in this Resolution shall be subject, cumulatively or not, to the sanctions provided for in art. 12 of Law No. 9,613 of 1998.

Art. 4 With the entry into force of this Resolution, Resolution No. 29, of 7 December 2017, of Coaf is revoked.

Art. 5 This Resolution enters into force on 1 December 2021.

RICARDO LIÁO
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