(a) legal entities must report provided that, on December 31st, 2012 they had a net worth equivalent to or in excess of USD100,000,000.00 (one hundred million US dollars), and, simultaneously, have direct ownership, on any amount, from non-resident investors in its corporate capital;

(b) legal entities must report the current liabilities/loans contracted by them with non-resident creditors, by means of debt instruments, provided that, on December 31st, 2012 they had an outstanding balance in short-term trade debts due to foreign investors (due within 360 days), equivalent to or in excess of USD10,000,000 (ten million US dollars), granted by non-residents, regardless of the equity held by foreigners in their corporate capital.

(c) investment funds must report provided that, on December 31st, 2012 they had a net worth equivalent to or in excess of USD100,000,000.00 (one hundred million US dollars), and, simultaneously, had quotas directly held, on any amount, by non-resident investors.

The Manual referred to in Circular Letter No. 3,603 also provides that the above-mentioned reporting obligation does not apply to the following persons and administrative bodies:

(a) individuals; and

(b) direct administrative bodies of the Federal Government, States, Federal District and Municipalities.

The reporting shall be electronically transmitted to the Central Bank by means of the website www.bcb.gov.br as from July 1st, 2013 until 6 p.m. of August 15th, 2013.

The manual containing detailed information on the content and requirements of the reporting is available on the website www.bcb.gov.br

The lack, or the submission of the report, without compliance with the applicable regulations, subjects the violator to a fine up to R$250,000.00 (two hundred thousand reais), pursuant to Articles 6 and 58 of Law No. 4,131, of September 9th, 1962, as amended, and CMN Resolution No. 4,104, of June 28th, 2012.

(Law No. 4,131, of September 3rd, 1962; CMN Resolution No. 4,104, of June 28th, 2012; BCB Circular No. 3,602, of June 25th, 2012; and BCB Circular Letter No.3,603, of June 27th, 2013).

For more information or if you have any questions, please do not hesitate to contact our team.