Resolution No. 7 of September 15, 1999 - Revoked by COAF Resolution No. 39 of June 17, 2021 - Established procedures for commodity exchanges and brokers

Established procedures to be observed by commodity exchanges and brokers operating therein.

Published on 16/09/2020 01:06 Modified on 26/07/2021 14:34

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Established procedures to be observed by Commodity Exchanges and brokers operating therein - see original text below:

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 it public that the Plenary of the Council, in a session held on September 14, 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, and Decree No. 2,799, of October 8, 1998, Commodity Exchanges and brokers operating therein shall observe the provisions contained in this Resolution.

Section II
Identification of Clients and Maintenance of Registers

Art. 2. The persons mentioned in art. 1 shall identify their partners and all interveners in their operations and maintain an updated register, in accordance with this Resolution.

Art. 3. The register shall contain, at a minimum, the following information regarding partners and interveners in operations:

I – if a natural person:

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;

d) registration number in the Register of Natural Persons – CPF; and

e) main activity developed;

II – if a legal entity:

a) corporate name or trade name;

b) registration number in the National Register of Legal Entities – CNPJ;

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

d) main activity developed;

e) name and qualification of legal representatives; and

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

Section III
Record of Transactions

Art. 4. The persons mentioned in art. 1 shall maintain a record of all transactions carried out.

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

I – detailed description of the commodities;

II – transaction value;

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

IV – transaction date.

Section IV
Suspicious Operations

Art. 6. The persons mentioned in art. 1 shall pay special attention to operations or proposals that, according to 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 a period of twenty-four hours from their knowledge, abstaining from informing 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, observing the provisions contained in COAF Instruction No. 1, of July 26, 1999.

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 attend, at any time, to information requests made by COAF, regarding transactions and interveners.

Art. 12. The persons mentioned in art. 1 shall indicate, prior to the start of the effects of this Resolution, the name and qualification of the person responsible for implementing and monitoring compliance with the provisions of this Resolution.

Art. 13. To the legal entities mentioned in art. 1, as well as to their administrators, who fail to comply with the obligations of this Resolution, sanctions provided for in art. 12 of Law No. 9,613, of 1998, shall be applied, cumulatively or not, by COAF, in the manner provided for in Decree No. 2,799, of 1998, and in Ordinance of the Minister of State for Finance No. 330, of December 18, 1998.

Art. 14. The provisions of this Resolution refer exclusively to the sale of commodities in a Stock Exchange environment, without prejudice to the competence of the Central Bank of Brazil and the Securities and Exchange Commission in regulating and supervising transactions with financial assets referenced in commodity prices or securities.

Art. 15. The Presidency of the Council is authorized to issue complementary instructions to this Resolution.

Art. 16. This Resolution enters into force on the date of its publication, producing effects from October 18, 1999.

Brasília, September 15, 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. Operation in which the proponent is not willing to comply with registration requirements or attempts to induce those responsible for registration not to keep records in a file that can reconstruct the agreed operation.

3. Proposal to buy or sell a large quantity of commodities, without the origin of the resources or commodities being known.

4. Natural or legal person, without tradition in the market, moving a large volume of resources, without apparent justification.

5. 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.

6. Other operations that, due to their characteristics, regarding involved parties, values, method of realization, instruments used, or due to the lack of economic or legal basis, may configure hypotheses of crimes provided for in Law No. 9,613, of March 3, 1998, or be related to them.

Link to Official Gazette of the Union