Banks, Financial Services, Fintechs and Digital Assets Newsletter – August and September 2025

In this edition of our monthly newsletter, we have compiled the main news and regulatory develop-ments regarding the banking industry, financial services, fintechs and digital assets. This publica-tion was designed as a reliable source of infor-mation for our clients, partners and professionals who work or want to know more about the current landscape in regard to these topics.

Enjoy reading! 

REGULATIONS

Central Bank of Brazil

BC Normative Instruction No. 649, dated August 13, 2025

Amends Normative Instruction BC No. 307/2022 regarding operational procedures for the Reserve Transfer System (STR), Reserve Accounts, and Settlement Accounts, in line with the regulation attached to BC Resolution No. 105, dated June 09, 2021.

The key changes include:

• Account Opening Request: The opening of Reserve Accounts or Settlement Accounts by operating institutions will now be incorporated into the authorization process for establishing a commercial banking license or for amending the corporate purpose to operate as a commercial or multiple bank with a commercial license.
• Deadline for declaration of readiness: The minimum deadline for submitting the declaration of readiness to operate in the STR production environment has changed to 15 days prior to the start of operations or change in the main STR access method.

BC Normative Instruction No. 649 entered into force on September 01, 2025.

Read BC Resolution No. 649 in full.

BC Normative Instruction No. 652, dated August 27, 2025

Clarifies the credit quota limits applicable to real estate credit transactions and establishes conditions for contracting transactions that share the same property as collateral.

To comply with the rules governing credit quota limits established in Article 6 of Resolution No. 4,676, dated 2018, financial institutions and other entities authorized to operate by the Central Bank must, in addition to complying with Article 22-B of Resolution No. 4,676 of 2018:

• Comply with the provisions of Article 6, paragraphs 2 to 4 of Resolution No. 4,676, considering the scope of fiduciary sale and mortgage;
• Use the collateral value assessed on the date of each credit transaction, in accordance with current regulations; and
• Apply the credit quota limit in effect on the date of the new credit transaction, considering the predominant transaction, in cases where the same property is used as collateral in more than one transaction.

BC Normative Instruction No. 652 entered into force on the date of its publication.

Read BC Resolution No. 652 in full.

BC Normative Instruction No. 669, dated September 29, 2025

Amends BC Normative Instruction No. 512, dated August 30, 2024, which sets maximum limits for Pix transactions.

The rule adjusts the criteria that participants in the arrangement must consider to define the maximum transaction limits.

BC Normative Instruction No. 649 entered into force on the date of its publication.

Read BC Resolution No. 669 in full.

BC Resolution No. 492, of August 14, 2025

The new resolution amends:

• BC Resolution No. 278, dated December 31, 2022, regarding external credit transactions, including sustainable bonds; and
• BC Resolution No. 279, dated December 31, 2022, regarding the reporting of Brazilian capital abroad in the form of sustainable bonds.

BC Resolution No. 492 entered into force on the date of its publication.

Read BC Resolution No. 492 in full.

BC Resolution No. 493, of August 28, 2025

Amends BC Resolution No. 1, dated August 12, 2020, which establishes the Pix system payment system and approves its regulation, adjusting provisions related to the operation of the Pix Forum, improving the Special Refund Mechanism, and updating procedures for updating information linked to Pix keys.

BC Resolution 493 enters into force on the date of its publication, except for Article 3, which will become effective on February 2, 2026.

Read BC Resolution No. 493 in full.

BC Resolution No. 501, dated September 11, 2025

Amends BC Resolution No. 142, dated September 23, 2021, which addresses procedures and controls for fraud prevention in the provision of payment services by financial institutions, other entities authorized to operate by the Central Bank, and payment institutions that are part of the Brazilian Payment System (“SPB”).

The new rule aims to strengthen the security of the National Financial System (“SFN”), curb the use of the system by criminal organizations, facilitate asset recovery, and interrupt capital flows to accounts used in fraudulent operations. It reinforces anti-fraud mechanisms, especially in transactions for deposit or payment accounts with signs of illicit activity.

Institutions must adjust their systems and procedures according to the new requirements by October 13, 2025.

BC Resolution No. 501 entered into force on the date of its publication.

Read BC Resolution No. 501 in full.

Read our Client Alert on this topic (PT only).

BC Resolution No. 503, dated September 18, 2025

Amends BC Resolution No. 1, dated August 12, 2020, which establishes the Pix payment system and approves its regulation, to adjust provisions related to the maximum transaction value limits within the Pix system.

Key changes involve exceptions to the maximum transaction limit (Article 37, paragraph 4) and the definition of specific transactions exempt from such limit.

BC Resolution No. 503 entered into force on the date of its publication.

Read BC Resolution No. 503 in full.

BC Resolution No. 506, dated September 26, 2025

Amends BC Resolution No. 1, dated August 12, 2020, which establishes the Pix payment arrangement and approves its regulation, to adjust provisions related to the authorization criteria for payment institutions not authorized to operate by the Central Bank but participating in Pix; enhance the security mechanisms of the system; and update provisions regarding penalties applicable to Pix users.

BC Resolution No. 506 entered into force on the date of its publication.

Read BC Resolution No. 506 in full.

Brazilian National Monetary Council

CMN Resolution No. 5,238, dated August 01, 2024

Amends CMN Resolution No. 4,222, dated May 23, 2013, which governs the contributions to be paid by member institutions, the conditions for granting the special guarantee, the types of member institutions, and the bylaws and regulations of the Brazilian Deposit Insurance Fund (“FGC”).

The rule establishes new provisions regarding the additional contribution and defines the conditions under which FGC member institutions must maintain amounts allocated in federal government bonds.

CMN Resolution No. 5,238 will enter into force on June 01, 2025.

Read CMN Resolution No. 5,238 in full.

CMN Resolution No. 5,242, of August 22, 2025

CMN Resolution No. 5,242 governs the credit facilities referred to in Article 5-A of Law No. 9,818, dated August 23, 1999, which established the Export Credit Insurance Fund (FGE). It provides for the terms, financial charges, maturities, and other applicable guidelines for utilizing the FGE’s financial surplus assessed on December 31, 2024, as a funding source for extending credit lines to private-sector exporters of goods and services, as well as their suppliers — particularly those adversely affected by the imposition of additional tariffs on Brazilian exports to the United States of AmericaCMN Resolution No. 5,242 entered into force on the date of its publication.

Read CMN Resolution No. 5,242 in full.

CMN Resolution No. 5,243, of August 28, 2025

Amends CMN Resolution No. 5,242, dated August 28, 2025, which establishes the conditions, financial charges, deadlines, and other regulatory provisions for the financing lines referred to in Article 5-A of Law No. 9,818, of August 23, 1999.

CMN Resolution No. 5,243 entered into force on the date of its publication.

Read CMN Resolution No. 5,243 in full.

CMN Resolution No. 5,244, of August 28, 2025

Amends CMN Resolution No. 4,966, dated November 25, 2021, which provides for the accounting concepts and criteria applicable to financial instruments, including rules for establishing and recognizing hedge accounting relationships by institutions authorized to operate by the Central Bank.

CMN Resolution No. 5,244 entered into force on September 01, 2025.

Read CMN Resolution No. 5,244 in full.

NEWS

Central Bank consolidates regulations and expands regulatory scope for “finance companies”

On September 1, 2025, CMN Resolution No. 5,237, dated July 24, 2025, entered into force, consolidating and updating the regulatory framework for Credit, Finance, and Investment Companies (“SCFI”), commonly known as “finance companies.”

In particular, the new resolution governs the incorporation, authorization to operate, permitted transactions and activities of SCFIs, as well as the requirement that such institutions be formed as corporations and obtain prior authorization from the Central Bank. The regulation also requires these institutions to permanently maintain minimum levels of paid-in capital and net equity of BRL 7 million.

Originated from Public Consultation No. 10/2024, the new resolution aims to modernize the sector, increase competition, and strengthen legal certainty for finance companies.

Read BC’s article in full.

COFECI regulates the use of distributed ledger technology in real estate transactions

On August 14, 2025, Brazil’s Federal Council of Real Estate Brokers (“COFECI”) published COFECI Resolution No. 1,551, which:

• Establishes the Digital Real Estate Transactions System;
• Regulates the accreditation and operation of Digital Real Estate Transaction Platforms (“PITDs”) and Real Estate Custody and Guarantee Agents (“ACGIs”); and
• Governs digital real estate transactions.

The regulation addresses the digital representation of rights over real estate assets through distributed ledger technologies (blockchain/DLT), redefining governance, compliance and liability standards applicable to real estate brokers, property tokenization platforms, real estate custody and guarantee agents, and other operators or stakeholders seeking to enable real estate transactions in virtual environments.

This marks a significant regulatory shift for the entire market, as it also establishes supervisory responsibilities for the COFECI-CRECI system and imposes new operational, technological and consumer protection obligations on agents involved in digital real estate intermediation.

Read COFECI Resolution No. 1,551 in full.

Read our client alert on this topic.

The Magnitsky Act and why it puts banks in a dilemma

On August 20, 2025, Demarest partner Fabio Braga gave an interview to Folha de São Paulo about the Magnitsky Act and its impact on the banking and finance industry.

According to Federal Supreme Court (“STF”) Justice Flávio Dino’s ruling, foreign governments’ court orders and executive orders are not automatically enforceable in Brazil. The Magnitsky Act was passed in 2012 and expanded in 2016. It allows the United States government to impose sanctions on foreign individuals involved in corruption or human rights violations. These sanctions include asset freezes, restrictions on access to the financial system, and bans on dollar transactions. The most significant sanctions are:

• Personal immigration sanctions, such as banning visas and revoking U.S. entry authorizations; and
• Financial sanctions, primarily freezing assets in the U.S. and prohibiting U.S. citizens and companies from doing business with sanctioned individuals.

According to Braga, the law can affect international financial institutions, including Brazilian banks that operate or maintain relationships with the U.S. financial system. “Sanctions may be applied, for example, when a financial institution is identified as providing material assistance or financial services to sanctioned individuals or entities”, Fabio explains.

For Brazilian banks, the impact is direct and complex. Although Brazilian law requires a court ruling to enforce foreign sanctions, banks that maintain ties with the U.S. financial system — such as access to the dollar, the SWIFT network, or correspondent banks in the U.S. — face the risk of secondary sanctions if they fail to comply with U.S. restrictions.

This puts financial institutions at a crossroads: Comply with Brazilian law and risk international penalties or comply with U.S. sanctions and face legal disputes in Brazil. The risk is even greater for public banks, such as Banco do Brasil, which may deal directly with sanctioned authorities, for example in paying judges’ salaries, and are exposed to reputational, operational, and regulatory risks.

Braga further notes that operational segregation would not guarantee immunity, stating: “Whenever there are ties to the U.S. financial system — whether through asset movement or custody, transactions or relationships with sanctioned entities — the foreign financial institution linked to U.S. jurisdiction may be exposed to sanctions.” As such, “even if operational segregation could mitigate risks to some extent, it would not guarantee immunity, especially in cases of indirect involvement with sanctioned parties.”

Other experts warn that, systemically, legal uncertainty could affect credit, foreign exchange, and reliance in the banking system, with potential impacts on liquidity and financial stability.

Read in full

Federal Revenue Service sets payment institution obligations to combat tax and economic crimes

On August 28, 2025, the Brazilian Federal Revenue Service (“RFB”) published RFB Normative Instruction No. 2,278, which establishes new measures to combat tax crimes, including money laundering, asset concealment, and fraud.

The new rule also regulates the reporting of suspected crimes to the competent authorities and defines the obligations of payment institutions and participants in payment systems. 

RFB Normative Instruction No. 2,278 marks a strategic move toward supporting efforts to combat tax and economic crimes in Brazil.

Given that investigations have uncovered the involvement of regulated institutions and investment funds in money laundering and asset concealment, these regulations are key to reinforcing the importance of transparent conduct by financial and payment institutions, with special attention to traceability mechanisms and regulatory compliance.

The normative instruction entered into force on August 29, 2025 (date of publication on the Federal Official Gazette of Brazil)

Read our client alert on this topic.

Central Bank updates role of institutions and IT service providers within Brazilian financial systems

On September 5, 2025, the Central Bank of Brazil published BC Resolutions Nos. 494, 495, 496, 497 and 498, aiming to improve the security mechanisms and compliance of financial and payment institutions operating within the Brazilian Financial System (SFN) and the Brazilian Payment System (SPB).

The new rules introduce transaction limits, change authorization deadlines, impose additional technical requirements, and reinforce obligations applicable to Information Technology Service Providers (“PSTIs”) that process data for institutions accessing the communication infrastructure within their SFN transactions.

In addition, the Central Bank published BCB Normative Instructions Nos. 664, 666 and 667, which detail operational aspects and compliance deadlines related to the new requirements.

Normative Instruction No. 664 establishes technical and information security measures that PSTIs must implement to ensure the integrity and traceability of operations carried out within the SFN and SPB.

In turn, Normative Instructions Nos. 666 and 667 address temporary waivers for TED and Pix transaction limits, respectively, allowing institutions connected through PSTIs to carry out transactions above BRL 15,000, provided they meet strict capital, security, and audit requirements.

These regulations reinforce the Central Bank’s commitment to mitigating operational and cyber risks in the national financial ecosystem.

The resolutions and normative instructions are already in force.

Read our client alert on this topic.

Central Bank launches public consultation to improve eFX regulation

On September 19, 2025, the Central Bank published Public Consultation Notice No. 124/2025 to gather contributions regarding rules aimed at improving the regulation of international payment or transfer services, known as eFX.

Read the Public Consultation Notice No. 124/2025 on the Central Bank’s website

Read our client alert on this topic.

Administrative and Court Decisions

São Paulo State Court of Justice (TJSP)

TJSP and financial institutions sign agreement for conciliation and mediation sessions involving banking contracts

The President of the São Paulo State Court of Justice (“TJSP”), Justice Fernando Antônio Torres Garcia, and representatives of the banks Bradesco, C6 Bank, Itaú, Safra and Santander — all affiliated with the Brazilian Federation of Banks (“FEBRABAN”) — signed a consent decree to implement a pilot project aimed at conducting conciliation and mediation sessions for banking contracts under the jurisdiction of TJSP.

The project is governed under Ordinance No. 10,641/25 and was formalized during a ceremony at TJSP headquarters (Palácio da Justiça) that welcomed judicial authorities and financial institution representatives.

The initiative seeks to promote consensual solutions to banking disputes, thus avoiding litigation, and expediting dispute resolution. When the Central Special Civil Court of the Capital receives a case involving banking contracts with participating institutions, it will inform the parties about the project and refer the complaint to the Judicial Center for Conflict Resolution (“CEJUSC”) for a pre-trial conciliation hearing. If an agreement is reached, the court will ratify it; otherwise, the case will follow through with the regular judicial process.

Read the TJSP article in full.