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Central Bank determines the mandatory creation of channel for denounces, investigations, and application of compliance procedures

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6/9/2017 12:00 AM Demarest News

Central Bank determines the mandatory creation of channel for denounces, investigations, and application of compliance procedures

The National Monetary Council edited Resolution 4.567/2017 that has created the obligation for financial institutions to communicate to the Central Bank of Brazil any information that may impact the reputation of controlling shareholders and holders of qualified interest in the capital of the institution and members of bodies provided for in the articles of incorporation, within 90 days of publication in the Federal Official Gazette. The institution shall make this communication within ten business days counted from acquiring knowledge of or accessing the information.

The institutions covered by the new Resolution must provide a communication channel through which employees, collaborators, customers, users, partners or suppliers may report, without having to identify themselves, situations that indicate any wrongdoing or unlawfulness action related to the activities of the institution.

The institutions must appoint someone within its organization or outsourced to be in charge of receiving and forwarding the information to the competent area to deal with the situation and the person in charge must act in an independent, confidential, and neutral manner, exempt from any interference whatsoever.

The competent area within the organization shall prepare semiannual follow-up reports on the matters reported, with reference to the periods of June 30 and December 31. Such reports must contain, at least, the number of reports received, the respective types, the areas responsible for dealing with the situation, the average time to deal with each situation and the measures adopted by the institution vis-à-vis the reported matter.

The report must be approved by the institution's board of directors or, in its absence, by the executive board and be available to the Central Bank of Brazil for at least five years.

All procedures to use the channel for denunciation and verification of evidence of unlawfulness conducts, including any penalties and decisions rendered, must have their own regulation and be disclosed on the institution's website on the Internet.

Both the Banking & Restructuring and Compliance areas of Demarest Advogados have been working to keep up to date with the debates and normative proposals on the various statements concerning compliance issues, even before the edition of the new Resolution. Thus, we have been helping our clients, among other things, regarding the structuring of alternatives for implementing

  •   Codes of Ethics, Policies, Procedures and Internal Controls System
  •   Assessment of risks of non-compliance and due diligence
  •   Channel for denunciation and continuous or investigative monitoring
  •   Certification of the Program and Processes of verification for bank institutions.

Given the new Resolution and considering the necessities as regards compliance, we remain at your disposal to help out with and clarify questions you may have about compliance with the rules arising from the new Resolution.

Demarest Advogados  

 

 


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