2023-05-10 18:27:07
In December 2022, the Central Bank of Brazil edited Res BCB 277, which provides for the foreign exchange market and the entry into and exit of amounts in reais and foreign currency into the country, and other provisions, regulating the Law No. 14,286, of December 29, 2021. Res BCB 277 was the subject of Public Consultation Notice (ECP) 90/2022, of May 12, 2022.
This new Resolution aims to modernize, simplify and bring greater legal certainty, allowing foreign exchange operations to be carried out with a lower degree of bureaucracy, and in compliance with the best international standards. Its purpose is to increase exchange rate stability and the competitiveness of the Brazilian economy, through measures such as the flexibility of exchange rate rules, the reduction of Central Bank intervention in the exchange rate market and the implementation of exchange risk management instruments. These measures should make international transactions simpler, and will mainly benefit Brazil’s performance in foreign trade.
The new foreign exchange market should encourage competition among market agents, through innovation, simplification and reduction of operating costs, to bring the customer lower costs, transparency, more agility and security in foreign exchange transactions.
The new exchange rate framework may have important impacts on the Brazilian economy, including increasing the competitiveness of exports, reducing dependence on speculative capital flows, increasing exchange rate stability and increasing risk for companies operating in foreign trade. However, it is important to remember that these impacts may vary depending on market conditions and other factors.
Modifications were introduced in the following aspects:
- Equalization of the treatment of exchange operations to other operations carried out in the SFN, observing that, in the case of operations with a customer, the institution authorized to operate in the exchange market must be able to prove to the BCB that the customer consents to the agreed conditions;
- Establishment that the institution authorized to operate in the foreign exchange market may request or dispense, according to its assessment, information and supporting documents for the course of operations, considering the client’s assessment and the characteristics of the operation;
- Insertion of provisions on requirements for authorization to operate in the foreign exchange market and on the treatment to be given by the BCB to requests for such authorization, as well as on its review and cancellation;
- Banks authorized to operate in the foreign exchange market may conduct all foreign exchange operations provided for in foreign exchange regulations;
- Credit, financing and investment companies and development agencies, authorized to operate in the foreign exchange market, may carry out the same foreign exchange operations as securities brokerage companies, securities distribution companies and foreign exchange brokerage companies ;
- Permission for institutions authorized to operate in the foreign exchange market to send to the BCB, until the 5th day of the month following the month in which it was carried out, information on foreign exchange operations of up to US$ 50 thousand (fifty thousand United States dollars) , or its equivalent in other currencies, which do not need to be linked to foreign capital operations;
- Matching the requirements for opening, maintaining, operating and closing accounts in reais for non-residents with those for residents’ accounts;
- The classification of the purpose of the foreign exchange operation becomes the responsibility of the customer, and institutions authorized to operate in the foreign exchange market must provide guidance and technical support to customers who need it; It is
- Simplification and rationalization of the process of classifying the purpose of exchange operations.
In addition to the changes introduced in the foreign exchange market, resulting from the entry into force of Law no.º 14,286, of December 29, 2021, the BCB issued several regulations to regulate the inflow and outflow of amounts in reais and in foreign currency, Brazilian capital abroad, foreign credit operations and foreign direct investment.
According to Gilson Oliveira Marques, managing partner of MK Consultoria, “This change aims to make the exchange operation less bureaucratic, more efficient and with an even greater level of security for all sides”. Due to changes in regulations, the MK Consulting elaborated and the Regdrive is making available a Practical Table, aiming to offer MK’s customers and the public in general, a summary with an interactive navigation between Annexes III and IV of the Res BCB 277in addition to the connection with the “Auxiliary notes for classification of exchange operations in general of more than US$ 50,000”.
Additionally, the user will be able to consult in the Practical Table an indication of the information and documents usually required for contracting the exchange rate and MK Consultoria’s perception of the inherent risk for money laundering and financing of terrorism – LDFT of each Type of Operation.
“We are sharing and making the table available to everyone Nature of Exchange Transactionswhich can be downloaded here”, adds Gilson Marques.
Over the Regdrive: O Regdrive is a GRC platform for governance, risk, compliance and internal audit management, developed by LYE Consultoria. Regdrive has been on the market for over 10 years, it was created to meet the regulatory demands of the SFN. In partnership with MK Consultoria, specialized in the financial market, it automates the regulatory compliance of more than 200 financial institutions, including banks, payment institutions, retailers and automakers.
Regarding the MK Consulting: A MK Organizational Consulting advises banking and non-banking institutions, managing matters related to the organization, regulation and supervision of the National Financial System. Its activities include setting up and canceling financial institutions, analyzing the governance structure and the effectiveness of internal controls. Specialist in Compliance, monitoring new standards, providing a library and organized and up-to-date compliance programs, in addition to advisory services for the interpretation of regulations.
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