Client Alerts 30/11/2021

New COAF Resolution on PEP

On November 22, 2021, Resolution No. 40 of the Financial Activities Control Board (“COAF Resolution No. 40/2021“) [1] was published, which revokes Resolution No. 29, effective as of March 8, 2018 (“COAF Resolution No. 29/2017 “) [2], which provides for the procedures to be adopted in connection with Politically Exposed Persons for entities regulated by COAF. The amendments made to COAF Resolution No. 29/2017, update the definition of Politically Exposed Persons, and provide further instructions regarding background checks on official databases for the identification of PEPs.  

Regarding the first point, COAF Resolution No. 40/2021 promoted fine adjustments to include: (i) members of National Councils and Regional Courts; (ii) Secretaries, Presidents, or equivalent, of entities of the Municipal Indirect Public Administration; (iii) Deputy Attorneys General of the Republic and of the Public Ministry; and (iv) the Vice-Deputy Attorney General of the Republic, as Politically Exposed Persons. These amendments are in line with the guidelines already published by the Central Bank of Brazil (“BCB”) [3] and the Brazilian Securities Commission (“CVM”) [4] and, therefore, do not represent innovations from the perspective of PLD-FTP . 

It is important to pay attention to the consultation of databases. The previous standard did not mention which would be the PEP lists to be consulted, but the new standard makes express reference to the CGU Transparency Portal [5] and the Siscoaf page [6] as non-exhaustive examples. Regulated entities must use the referred public portals, but also other means to form their conviction and demonstrate their diligence and good faith in complying with the new resolution. 

COAF Resolution No. 40/2021 will be effective as of December 1, 2021

[1], access on November 24, 2021, at 12:44 p.m. 

[2], access on November 24, 2021, at 12:45 p.m. 

[3], access on November 24, 2021, at 1:14 p.m. 

[4], access on November 24, 2021, at 1:15 p.m. 

[5], access on November 24, 2021, at 1:20 p.m. 

[6], access on November 24, 2021, at 1:21 p.m.

Authors: partner Bernardo Viana; trainee Matheus Leone