Resolution No. 29 of December 7, 2017 – Procedures for COAF‑Regulated Persons Regarding Politically Exposed Persons

Provides for the procedures to be observed by persons regulated by COAF, pursuant to § 1 of article 14 of Law No. 9,613, of March 3, 1998, regarding politically exposed persons. Published on: 08/12/2017 | Edition: 235 | Section: 1 | Page: 52. This Resolution entered into force ninety days after its publication, at which time Resolution No. 16, of March 28, 2007, was repealed.

Published on 02/03/2022 17:56 Modified 5 years ago

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Official Gazette of the Union

Published on: 08/12/2017 | Edition: 235 | Section: 1 | Page: 52

Agency: Ministry of Finance / Council for the Control of Financial Activities

Provides for the procedures to be observed by persons regulated by COAF, pursuant to § 1 of article 14 of Law No. 9,613, of March 3, 1998, regarding politically exposed persons.

https://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?data=08/12/2017&jornal=515&pagina=52

The President of the Council for the Control of Financial Activities – COAF, exercising the authority 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 December 6, 2017, based on § 1 of art. 14 of Law No. 9,613, of March 3, 1998, resolved:

Article 1

Art. 1 Persons regulated by COAF, under article 9 of Law No. 9,613, of March 3, 1998, must adopt the measures provided in this Resolution for the monitoring of operations or proposals of operations involving politically exposed persons.

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

1. Holders of elected mandates of the Executive and Legislative Powers of the Union;
2. 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 and Advisory Group – DAS, level 6, or equivalent;
3. Members of the Supreme Federal Court, the Superior Courts and the Federal Regional Courts, the Labor Courts and the Electoral Courts;
4. The Attorney General of the Republic, the Attorney General of Labor, the Attorney General of the Military Justice and the Attorneys General of Justice of the States and the Federal District;
5. Members of the Federal Court of Accounts and the Attorney General of the Public Prosecutor’s Office attached to the Federal Court of Accounts;
6. The national presidents and treasurers, or equivalents, of political parties;
7. Governors and state secretaries of the State and the Federal District, State and District Deputies, the presidents, or equivalents, of entities of the indirect public administration at the state and district level and the presidents of State, Military, Accounts or equivalent Courts;
8. Mayors, councilors, presidents of Courts of Accounts or equivalent of the municipalities.

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

1. Heads of state or government;
2. Senior‑level politicians;
3. Occupants of senior‑level governmental positions;
4. General officers and members of senior levels of the judiciary;
5. Senior‑level executives of public companies; or
6. Leaders of political parties.

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

§ 4 For the identification of politically exposed persons that fall under § 1 of this article, persons regulated by COAF must consult a specific database made available by the Federal Government.

§ 5 For the identification of politically exposed persons that fall under §§ 2 and 3 of this article, persons regulated by COAF must resort to open sources and public and private databases.

§ 6 The condition of being a politically exposed person persists for up to five years counted from the date on which the person ceases to meet the criteria of §§ 1, 2 and 3 of this article.

Article 2

Art. 2 Persons regulated by 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:

1. Obtain prior authorization from the managing partner for the establishment of a business relationship or for the continuation of existing relationships;
2. Conduct due diligence to establish the origin of the resources;
3. Carry out reinforced and continuous monitoring of the business relationship.

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

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

1. Natural persons known to have joint ownership or partnership in private legal entities or in arrangements without legal personality, who act as mandataries, even by private instrument, or who have any other type of close public‑knowledge relationship with a politically exposed person;
2. 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.

Article 3

Art. 3 To the persons mentioned in Article 1, as well as to their administrators, when a legal entity, who fail to comply with the obligations of this Resolution, the sanctions provided in Article 12 of Law No. 9,613, of 1998, as stipulated by Decree No. 2,799, of 1998, and by Ordinance of the Minister of State of Finance No. 330, of December 18, 1998, will be applied by COAF, cumulatively or not.

Article 4

Art. 4 This Resolution enters into force ninety days after its publication, at which time Resolution No. 16, of March 28, 2007, is repealed.

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ANTONIO GUSTAVO RODRIGUES