Resolution No. 16 of March 28, 2007 - Procedures for Regulated Persons Regarding Politically Exposed Persons

Disposes on the procedures to be observed by persons regulated by the Coaf, in accordance with § 1 of Article 14 of Law No. 9,613 of March 3, 1998, regarding operations or proposals for operations carried out by politically exposed persons. It was revoked by Resolution No. 29 of December 7, 2017.

Published on 02/03/2022 18:26 Modified 5 years ago

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MINISTRY OF FINANCE

FINANCIAL ACTIVITIES CONTROL COUNCIL - COAF

DOU of 30/03/2007 (No. 62, Section 1, p. 25)

Disposes on the procedures to be observed by persons regulated by the Coaf, in accordance with § 1 of Article 14 of Law No. 9,613 of March 3, 1998, regarding operations or proposals for operations carried out by politically exposed persons.

THE PRESIDENT OF THE FINANCIAL ACTIVITIES CONTROL COUNCIL - COAF, using the attribution conferred by item IV of Art. 9 of the Statute approved by Decree No. 2,799 of October 8, 1998 and considering the provisions of Art. 52 of the United Nations Convention against Corruption, whose execution and compliance in Brazil were determined by Decree No. 5,687 of January 31, 2006, makes public that the Plenary of the Council, in a session held on March 27, 2007, based on § 1 of Art. 14 of Law No. 9,613 of March 3, 1998, resolved:

Art. 1 - The persons listed in Article 9 of Law 9,613 of March 3, 1998 and who are regulated by the Coaf must, in addition to the provisions of their respective Resolutions, adopt the measures provided for in this Resolution for the establishment of a business relationship and the monitoring of operations or proposals for operations carried out by politically exposed persons.

§ 1 - Politically exposed persons are considered to be public agents who have held or have held, in the last five years, in Brazil or in foreign countries, territories, and dependencies, relevant public offices, jobs, or functions, as well as their representatives, family members, and close collaborators.

§ 2 - In the case of Brazilian politically exposed persons, for the purposes of § 1, the following must be included:

I - holders of elective mandates in the Executive and Legislative branches of the Union;

II - occupants of positions in the Executive branch of the Union:

a) of State Minister or equivalent;

b) of Special Nature or equivalent;

c) of president, vice-president, and director, or equivalents, of autarchies, public foundations, public companies, or mixed-economy societies;

d) of the Higher Direction and Advisory Group - DAS, level 6, and equivalents;

III - members of the National Council of Justice, the Federal Supreme Court, and the Superior Courts;

IV - members of the National Council of the Public Ministry, the Attorney General of the Republic, the Deputy Attorney General of the Republic, the Attorney General of Labor, the Attorney General of the Military Justice, the Deputy Attorneys General of the Republic, and the Attorneys General of Justice of the states and the Federal District;

V - members of the Court of Accounts of the Union and the Attorney General of the Public Ministry before the Court of Accounts of the Union;

VI - governors of States and the Federal District, presidents of Courts of Justice, Legislative Assemblies, and District Chambers, and presidents of Courts and Councils of Accounts of States, Municipalities, and the Federal District;

VII - Mayors and Presidents of Municipal Chambers of State capitals.

§ 3 - In the case of foreign politically exposed persons, for the purposes of § 1, the obligated persons mentioned in the caput may adopt the following measures:

I - request an express declaration from the client regarding their classification;

II - resort to publicly available information;

III - resort to commercial electronic databases on politically exposed persons;

IV - consider the definition contained in the glossary of terms used in the 40 FATF Recommendations, not applicable to individuals in intermediate or lower positions or categories, according to which a "politically exposed person" is one who exercises or has exercised important public functions in a foreign country, such as heads of state and government, high-level politicians, senior civil servants, magistrates or high-level military officers, executives of public companies or executives of political parties.

§ 4 - The five-year period referred to in § 1 must be counted retroactively from the date of the beginning of the business relationship or from the date when the person came to be classified as a politically exposed person.

§ 5 - For the purposes of § 1, family members are considered to be relatives in the direct line up to the first degree, the spouse, the partner, the stepson, and the stepdaughter.

Art. 2 - For the purposes of compliance with the provisions of Art. 1:

I - the communication to the Coaf, provided for in item II of Art. 11 of Law No. 9,613 of March 3, 1998, must include the information that it concerns a person identified as a politically exposed person;

II - the internal procedures developed and implemented in accordance with the Resolutions mentioned in the caput of Art. 1 must also:

a) be structured in a way that enables the identification of persons considered politically exposed;

b) identify the origin of the resources of the operations of persons and beneficial owners identified as politically exposed persons, the compatibility of the operations with the assets recorded in the respective registries may be considered.

§ 1 - Prior authorization from the person responsible in the obligated company for compliance with the norms issued by the Coaf, or from the executive or owner of the obligated person, is mandatory for the establishment of a business relationship with a politically exposed person or for the continuation of existing relationships when the person comes to be classified in this category.

§ 2 - The obligated persons mentioned in Art. 1 must dedicate special, reinforced, and continuous attention to the business relationship maintained with a politically exposed person.

Art. 3 - The obligated persons mentioned in Art. 1 must dedicate special, reinforced attention to proposals for initiating relationships and operations with politically exposed persons originating from countries with which Brazil has a high number of financial and commercial transactions, common borders, or ethnic, linguistic, or political proximity.

Art. 4 - To the persons mentioned in Art. 1, as well as to their administrators, when a legal entity, who fail to comply with the obligations of this Resolution, the sanctions provided for in Art. 12 of Law No. 9,613 of 1998, in accordance with the provisions of Decree No. 2,799 of 1998 and the Ordinance of the Minister of State of Finance No. 330 of December 18, 1998, will be applied by the Coaf, cumulatively or not.

Art. 5 - This Resolution enters into force on the date of its publication, producing effects from September 3, 2007.

ANTONIO GUSTAVO RODRIGUES