Highlights of the week

In November, the Central Bank of Brazil (Bacen) issued Circular No. 3,858, which sets forth regulations on the criteria for applying the administrative penalties provided for in Law No. 9,613/98 (Money Laundering Prevention Law) applicable to (i) financial institutions; (ii) other institutions under the supervision of Bacen; (iii) members of the Brazilian Payment System; and (iv) individuals who act as officers of financial institutions and other institutions authorized by Bacen.
On August 16, the Central Bank of Brazil (Bacen) published Public Consultation Notice No. 53/2017 in order to receive suggestions and comments on a draft resolution and the three circulars that will establish a simplified methodology for determining the equity benchmark for small-sized institutions. The objective is to facilitate the entry and prudent operation of new institutions with low exposure to risks in the financial system.
Legal entities and investment funds incorporated in Brazil must submit a report to the Central Bank of Brazil (the “Central Bank”), on December 31st of the previous fiscal year, detailing investments in their quotas and/or shares held by or the outstanding short-term trade debts owed to foreign investors in the following situations
The National Monetary Council (CMN) issued new rules for internal audit activities at financial institutions and other institutions authorized to operate by the Central Bank of Brazil (Bacen).