Declaration to the Central Bank of Assets and Rights Held Abroad

The period for annual declaration of Brazilian Capital held Abroad (CBE) to the Brazilian Central Bank (Bacen), referring to the base date of December 31, 2021, shall be open until April 5, 2022.

All individuals and legal entities that are resident, domiciled or headquartered in Brazil (in accordance with Brazilian tax legislation) and that hold, outside Brazilian territory, assets of any nature amounting to or exceeding USD 1,000,000.00 (one million United States dollars) on the base date of December 31, 2021, must file the annual information return.

Among the assets that must be reported are the following:

  1. cash deposits;
  2. credit originating from cash loans and from financing;
  3. credit originating from finance lease receivables and lease with option to purchase;
  4. direct investments and portfolio investments;
  5. investments in financial derivatives;
  6. commercial credit; and
  7. property, other investments and other assets.

 

Failure to report the information required by Bacen or submission of false, incomplete, incorrect or noncompliant information, as well as late reporting, constitute violations subject to a fine of up to two hundred and fifty thousand Brazilian reais (BRL 250,000.00), with the possibility of a 50% increase in some specific cases.

Bacen is required to keep all data received confidential. Therefore, should Bacen decide to disclose information, it will do so without identifying individual cases.

Demarest’s Banking and Finance team is available to assist you in complying with this obligation. For more information, please feel free to contact us.