Search

Editors

Richard L. Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Elizabeth K. Spahn Editor Emeritus

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor


FCPA Blog Daily News

« Event: Why good people and companies do wrong (Fordham Law School - October 10) | Main | OFAC fines Cartier parent company under drug kingpin sanctions »
Wednesday
Sep272017

Lucas Zanoni: Brazil banks now required to adopt compliance programs

Brazil's Central Bank issued a rule on compliance policies for financial institutions and credit unions. Resolution Nº 4,595 of August 28, 2017 requires these institutions to adopt compliance programs.

Under the new rule, boards of directors of financial institutions are required to send documentation to the Central Bank and an annual report with the results of activities related to the compliance function. The report must include main conclusions, recommendations and actions taken by the institution's management, as well as steps to "test and evaluate the institution's adherence to the legal framework, infra-legal regulations, recommendations of supervisory bodies and, where applicable, codes of ethics and conduct."

The new rule requires banks to define at least: (1) the objective and scope of the compliance function, (2) the clear division of the responsibilities for the persons involved in it, (3) the allocation of adequate personnel and resources, (4) the position of the specific unit in the organizational structure of the institution, and the measures necessary to ensure its independence and adequate authority, as well as its free access to the information necessary for the exercise of its functions, (5) communication channels, and (6) the procedures for coordination with risk management and internal auditing areas. 

Banks are required to have policies, procedures and internal controls compatible with their size and volume of operations, that allow them to comply with the AML provisions.

In June of this year, the Central Bank issued another regulation requiring all institutions operating under its guidelines to make available an independent channel for reporting fraud or unlawful evidence. Under Resolution Nº 4,567 of April 27, 2017, companies must provide whistleblower channels to all of their employees, collaborators, clients, partners and suppliers.

______

Lucas Zanoni is an undergraduate student of history and law at the University of São Paulo, researcher in the fields of Fiscal History and Anti-corruption, and intern at ID Global, an institute of research and experimental development in social and human sciences.

Reader Comments (1)

Hi Lucas,

Congratulations for your article.I would like to understand the ID Global institute mission. Is that possible?
September 27, 2017 | Unregistered CommenterJose Leonelio De Souza

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.