Approved New Law On Administrative Proceedings In Financial System

Law No. 13,506, dated November 13, 2017, amended the rules applicable to punitive procedures conducted by the Central Bank of Brazil (BCB) and the Brazilian Securities Commission (CVM).

With respect to BCB, which is the scope of this article, the new law affects all entities under the surveillance of BCB, such as banks and members of the Payment and Consortium Systems. It also impacts individuals and corporations developing activities under the surveillance of BCB, rendering certain audit services to such entities or holding management positions therein.

Infractions

When compared to Law No. 4,595, dated December 31, 1964 (which governs the National Financial System – "SFN"), the new law broadened the list of administrative infractions to which individuals and companies are subject. The new list is long and includes the failure to provide information required by law or regulation to BCB (such as the declaration of Brazilian assets abroad), the performance of