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Banks, Financial Services, Fintechs and Digital Assets Newsletter – February 2025
March 14th, 2025
Central Bank of Brazil
BCB Normative Instruction No. 584, of January 28, 2025
Normative Instruction (“IN”) BCB No. 584, of January 28, 2025, details the accounting items to be used in calculating the minimum requirements for Simplified Reference Equity (“PRS5”) and Reference Capital of Payment Institution (“PRIP”). This IN also specifies the amounts of simplified risk-weighted assets (“RWAS5”) and risk-weighted assets for payment institutions (“RWAIP”).
The IN’s annexes detail the components provided for in the Accounting Standard of Institutions Regulated by the Brazilian National Financial System (“COSIF”) for calculating the minimum requirements of PRS5 and PRIP, as well as the amounts of the RWAS5 and the RWAIP.
BCB IN No. 584 entered into force on January 31, 2025.
BCB IN No. 585, dated January 29, 2025
BCB IN No. 585, of January 29, 2025, provides for the procedures and templates of documents necessary for orienting authorization requests involving payment arrangements that are part of the Brazilian Payment System (“SPB”).
These models include: (i) the authorization request for payment arrangement institutions; (ii) the request for prior authorization to change the documents and data required in the authorization request; (iii) the cancellation request regarding the authorization arising from the termination of activities; (iv) the cancellation request regarding the authorization due to a decrease in volume; and (v) the statement of the settlor of the arrangement in compliance with the regulation’s requirements.
BCB IN No. 585 entered into force on January 29, 2025.
BCB IN No. 587, dated January 31, 2025
BCB IN No. 587, of January 31, 2025, provides for version 6.0 of the Open Finance Data and Services Manual. This new version of the manual includes changes such as the insertion of fields relating to the salary portability of individuals, “type of payer/recipient engaged in the transaction”, and the field “zero limit justification” to justify a zeroed credit card limit, among other updates.
In addition, customer transactional data relating to investment products and foreign exchange transactions, as well as data relating to successive payments without redirection were included.
Finally, it became mandatory to implement all the fields listed in the manual, removing the labeling of optional fields.
BCB IN No. 587 entered into force on the date of its publication.
BCB IN No. 588, dated January 31, 2025
BCB IN No. 588, of January 31, 2025, provides for version 4.0 of the Manual of Services Rendered by the Open Finance Governance Structure.
The new version of the manual includes changes such as: reorganizing and further detailing the service desk section; updating the subsections relating to the developer and participant areas; and simplifying the text in compliance with the Open Finance Monitoring Manual edition. Additionally, BCB IN No. 588 updates the subsection of the Manual of Services Rendered by the Open Finance Governance Structure regarding identity and access management.
BCB IN No. 588 entered into force on the date of its publication.
BCB IN No. 589, dated February 04, 2025
BCB IN No. 589, of February 04, 2025, provides for version 7.1 of the document “Minimum Requirements for User Experience”, which integrates the Pix regulation.
Among the changes introduced by BCB IN No. 589, we highlight the repositioning of the chapter on immediate payments or with a due date through dynamic QR Code, in addition to including a new chapter addressing the Automatic Pix. Furthermore, significant changes were made to the introduction and the items that address the mandatory access to the service channel for registering complaints within the scope of Pix, as well as in the presentation of payment and scheduling icons.
Other relevant changes include the insertion of both the Scheduled Pix and the Automatic Pix in the mandatory nomenclatures, the mandatory identification of these transactions in account and Pix statements, and the recommendation to retrieve the scheduling receipts. The chapters addressing recurring Scheduled Pix and Automatic Pix transactions have also been redrafted, with wording adjustments and the inclusion of new items to improve the functionality and clarity of the information provided.
The regulation also repeals BCB IN No. 347, of January 31, 2023, as of April 01, 2025, and BCB IN No. 517, of August 30, 2024, on the date of its publication.
BCB IN No. 589 comes into force on August 01, 2025, for chapter 16; on June 16, 2025, for chapter 15 and the amendments to chapters 8, 11, and 17 relating to the Automatic Pix; and on April 01, 2025, for the remaining amendments and chapters, as described in detail in the annex to the IN.
BCB IN No. 590, dated February 05, 2025
BCB IN No. 590, of February 05, 2025, amends BCB IN No. 330, of November 24, 2022, which consolidates the procedures for registering data in the Central Bank’s Information System on Entities of Interest (“Unicad”), addressing BCB Resolution No. 209, of March 22, 2022. The regulation provides for the procedures for registering a contracted company, established in Article 5 of Joint Resolution No. 6 of May 23, 2023.
The new regulation introduces an additional section in BCB IN No. 330, of November 24, 2022. This section, entitled “Section VIII – Registration of a company hired to provide the service of sharing data and information on indications of fraud”, establishes that the hiring of companies for the service of sharing data and information on indications of fraud must be registered with Unicad, in the “Connections” module.
The fields to be completed include the Corporate Taxpayer Registry (“CNPJ”) of the contracting financial institution, the contracted company’s CNPJ, the start and end dates of the services provision, and observations if necessary. If the institution does not hire a company, it must provide its own CNPJ in the corresponding fields. The registration must be carried out within ten days after contracting or in the case of not hiring the service in question.
BCB IN No. 590 entered into force on March 03, 2025.
BC opens public consultation to regulate the denomination of authorized institutions
On February 13, 2025, the Central Bank of Brazil (“BC”) published Public Consultation Notice No. 117, which proposes enacting a joint resolution with the Brazilian National Monetary Council (“CMN”) providing for the denomination of institutions authorized to operate by the BC. The initiative seeks to ensure greater transparency to the public in providing financial services and payments by requiring institutions to use the denominations that clearly and unequivocally specify the purpose of authorization for operations. The proposed regulation encompasses not only the corporate name but also trade names, trademarks, and internet domains.
In the case of prudential conglomerates, using terms that refer to the activities of their members is allowed. For the institutions integrating the prudential conglomerate, using the conglomerate’s name in its denomination is authorized in the public presentation, provided that they clearly refer to the authorization purpose to operate granted by the BC.
ECP No. 117/2025 also proposes that institutions clearly describe the specific activities for which they were authorized to operate in their channels of communication and services to customers and users.
Finally, ECP No. 117/2025 establishes that institutions in non-compliance with the proposed new regulations must submit a transition plan to be analyzed by the BC within 180 days of the resolution’s entry into force. It is worth noting that the resolution still must specify, among other topics, the individual deadline for complying with the proposed regulations.
Suggestions and comments can be submitted to the BC through the Participa Mais Brasil portal by May 31, 2025.
Read our client alert on this topic
IASP holds event on the regulation of virtual assets
On February 19, 2025, Instituto dos Advogados de São Paulo (IASP) held an event to discuss the regulation of virtual assets. Guest speaker Luciana Pereira Costa – Legal Superintendent of Regulation and Capital Markets for the Brazilian Stock Exchange (“B3”) – attended the event.
The event was mediated by Ilene Patrícia de Noronha Najjarian, PhD in Commercial Law from Universidade de São Paulo, and Fabio de Almeida Braga, Demarest’s partner in the Banking, Financial Services, Fintechs, and Digital Assets practice area. Both contributed to the discussion on the challenges involved in regulating virtual assets.
BC publishes report on first phase of Drex Pilot and call for second phase
On February 26, 2025, the BC published a technical report on the first phase of the Drex Pilot, which tested a distributed ledger technology-based platform (DLT).
The report initially addresses the assumptions used in structuring the Drex Pilot platform and the scope of the tests carried out. It then discusses the applied architecture and design solutions considered, to ensure the Drex platform’s compliance with the regulatory and legal framework—especially regarding the privacy and security of transactions. The report analyzes the tested solutions, highlighting the opportunities and challenges involved, and concludes that greater depth is essential to ensure the platform’s compliance with privacy, data protection, and security requirements.
Based on the results of the first phase, the second phase of the Drex Pilot was introduced, aiming to certify the platform’s potential for other business cases proposed by market representatives.
Due to technological challenges and the need for more intensive monitoring than expected, the BC decided not to include new cases in the second phase of the Drex Pilot. Moreover, the proposals presented did not differ sufficiently from the cases already under test to justify the allocation of resources.
Check out the technical report on the first phase of the Drex Pilot
Deadline for submitting the Annual Report of Brazilian Capital held Abroad enters into force
The period for submitting the Annual Report of Brazilian Capital held Abroad (“DCBE”) – regarding the base date of December 31, 2024 – to the BC will run from February 15 to April 05, 2025. The statement is mandatory for individuals and legal entities residing, domiciled, or headquartered in Brazil, whose owned amounts, goods, rights, and assets of any nature in an amount equal to or greater than USD 1,000,000.00 (or an equivalent amount in other currencies) on the established base date. Assets subject to the report include holdings in foreign companies, Brazilian Depositary Receipts (“BDRs”), shares of foreign investment funds, debt securities, loans granted to non-residents, deposits, commercial credits, real estate, virtual assets held abroad, derivatives, and export revenues held abroad.
Failure to provide the required information and the provision of false, incomplete, or incorrect data can result in penalties by the BC. The data declared will be treated confidentially, so taxpayers will not be identified individually. Given the relevance of the obligation and the specified period, it is essential that taxpayers carefully review their information and ensure submission within the established period.
Read our client alert on this topic
BC modernizes regulations on payment slips and authorizes Pix payments
As of February 03, 2025, a BC resolution entered into force to streamline the current regulations on payment slips. The main change allows payment slips to be settled through other arrangements authorized or operated by the BC, such as Pix. The user can access a specific QR Code, included in the payment slip, to perform the transaction.
BCB Resolution No. 443, of December 12, 2024, also introduces the dynamic payment slip – a collection method that will be used to negotiate debt securities between companies. The BC will define – through a normative instruction –, the types of financial assets that can be linked to the dynamic payment slip, thus ensuring the security of this new payment method.
Initially, the dynamic payment slip can be linked to book duplicates and real estate receivables, in compliance with previous regulations. The regulation also requires a more solid governance structure for the regulation on payment slips, including the participation of several segments that integrate this payment arrangement. In addition, it provides for a tariff model and reimbursement of operational costs considering isonomy, transparency, and economic rationale, thus avoiding anti-competitive practices.
Read BCB Resolution No. 443 in full
CMN regulates the use of real estate as collateral in more than one real estate credit transaction
The CMN published CMN Resolution No. 5,197, of December 19, 2024, which updates the conditions for contracting real estate credit, thus amending CMN Resolution No. 4,676, of July 31, 2018. Such review was necessary due to Law No. 14,711, of October 30, 2023, which introduced changes to ensure more effectiveness and legal certainty in mortgages and fiduciary divestitures. The new regulations will enter into force in July.
The key changes include extending fiduciary transfers and mortgages, thus allowing real estate properties used as collateral to be used again in further credit transactions, even before the settlement of the original transaction. The fiduciary real estate ownership of the asset remains with the original creditor, but the new transaction can be carried out with a different creditor.
This review also regulates the sharing of guarantees in new real estate credit transactions, establishing limits for the sum of the new transactions and the outstanding balances of the transactions already secured regarding the amount of the real estate property.
For loans to individuals secured by residential real estate properties, the regulation allows financial institutions to require insurance against the risk of death, permanent disability of the borrower, and damage to the real estate property. This measure is important for protecting borrowers and their families in the event of a claim.
The resolution aims to ensure the solidity of real estate credit processes, increase the security of those involved, and contribute to the proper functioning of the real estate credit market and the Brazilian National Financial System (“SFN”).
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