Resolution No. 4, of June 2, 1999 - Repealed by COAF Resolution No. 23, of December 20, 2012, in force since June 1, 2013 - Established procedures for individuals or legal entities trading in jewelry, stones, and precious metals

Dispensed with the procedures to be observed by individuals or legal entities that trade in jewelry, stones, and precious metals

Published on 17/09/2020 01:38Modified on 02/07/2021 21:01

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Official Gazette of the Union

Resolution No. 4, of June 2, 1999

Establishes the procedures to be observed by individuals or legal entities that trade in jewelry, stones, and precious metals

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, makes public that the Plenary of the Council, in a session held on June 1, 1999, based on § 1 of art. 14 of Law No. 9,613, of March 3, 1998, resolved:

Section I
Preliminary Provisions

Art. 1. With the objective of preventing and combating the crimes of "money laundering" or concealment of assets, rights, and values, as established in Law No. 9,613, of March 3, 1998, regulated by Decree No. 2,799, of October 8, 1998, individuals or legal entities that trade in jewelry, stones, and precious metals shall observe the provisions contained in this Resolution.

Sole Paragraph. The provisions of this Resolution apply to individuals or legal entities that trade, import, or export jewelry, stones, and precious metals, on a permanent or occasional basis, as a main or ancillary activity, cumulatively or not.

Section II
Client Identification and Maintenance of Registers

Art. 2. The persons mentioned in art. 1 shall identify their clients and maintain registers, in accordance with this Resolution.

Art. 3. The following client information shall be included in the register:

I – if an individual:

a) name;

b) full address (street, complement, neighborhood, city, state, ZIP code), telephone;

c) identification document number, issuing authority name, and date of issuance or passport or civil ID data, if foreign; and

d) Individual Taxpayer Registry number – CPF;

II – if a legal entity:

a) corporate name;

b) National Legal Entity Registry number – CNPJ;

c) full address (street, complement, neighborhood, city, state, ZIP code), telephone;

d) main activity developed; and

e) name of controlling, controlled, or affiliated companies.

Section III
Transaction Records

Art. 4. The persons mentioned in art. 1 shall maintain a record of every transaction that exceeds a value equivalent to R$ 5,000.00 (five thousand reais) in retail sales and R$ 50,000.00 (fifty thousand reais) in industrial sector sales.

Art. 5. The record shall include, at minimum, the following information:

I – detailed description of the merchandise;

II – transaction value;

III – payment method (cash, check, credit card, financing, etc.); and

IV – transaction date.

Sole Paragraph. Operations that, carried out by the same individual or legal entity, conglomerate, or group, in the same calendar month, at the same establishment, exceed in their entirety the limit established in the previous article shall also be recorded.

Section IV
Suspicious Operations

Art. 6. The persons mentioned in art. 1 shall pay special attention to operations or proposals that, in accordance with the Annex to this Resolution, may constitute serious indications of the crimes provided for in Law No. 9,613, of 1998, or be related to them.

Section V
Communications to COAF

Art. 7. The persons mentioned in art. 1 shall communicate to COAF, within twenty-four hours, refraining from informing the clients of such act, the proposal or the realization of transactions provided for in art. 6.

Art. 8. Communications to COAF, made in good faith, as provided for in § 2 of art. 11 of Law No. 9,613, of 1998, shall not entail civil or administrative liability.

Art. 9. The information mentioned in art. 7 may be forwarded through an electronic process.

Section VI
General and Final Provisions

Art. 10. The registers and records provided for in this Resolution shall be preserved by the persons mentioned in art. 1 for a minimum period of five years, from the conclusion of the transaction.

Art. 11. The persons mentioned in art. 1 shall respond, at any time, to information requests made by COAF regarding their clients and transactions.

Art. 12. To the legal entities mentioned in art. 1, as well as to their administrators, 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 the manner set forth in Decree No. 2,799, of 1998, and in the Ordinance of the Minister of State for Finance No. 330, of December 18, 1998, shall be applied, cumulatively or not, by COAF.

Art. 13. COAF will make available, prior to the start of the effects of this Resolution, an Internet electronic address for receiving communications.

Art. 14. The Presidency of the Council is authorized to issue complementary instructions to this Resolution, especially regarding the provisions contained in Section V – Communications to COAF.

Art. 15. This Resolution enters into force on the date of its publication, producing effects from August 2, 1999.

Brasília, June 2, 1999

Adrienne Giannetti Nelson de Senna

Annex
List of suspicious operations

1. Use of a value equal to or greater than R$ 10,000.00 (ten thousand reais), in cash, in transactions subject to this Resolution.

2. Repeated operations in a value close to the limit for recording or communication to COAF.

3. Operation in which the proponent is not willing to comply with registration requirements or attempts to induce those responsible for the business not to keep records in file that can reconstruct the agreed operation.

4. Proposal to sell a large quantity of stones and/or precious metals in raw state, without their origin being known or that the declared mining area has no tradition in the product or is exhausted.

5. Individual or legal entity, without market tradition, moving a high amount in the acquisition of assets subject to this Resolution, dispensing with the certification of origin and evaluation of the products traded.

6. Operation in which the proponent does not appear to have financial conditions for its realization, configuring the possibility of being a "front" or "straw man," as people who lend their names for shady operations are usually known.

7. Operation in which payment is proposed by means of transfer of funds between accounts abroad.

8. Proposals for over-invoicing or under-invoicing in trade operations with the assets subject to this Resolution.

9. Other operations that, due to their characteristics, with respect to involved parties, values, manner of realization, instruments used, or due to the lack of economic or legal foundation, may constitute a hypothesis of crimes provided for in Law No. 9,613, of March 3, 1998, or be related to them.

(*) Original published in the Official Gazette of the Union of June 4, 1999, section I, page 7.