On July 30, 2020, the National Monetary Council (“CMN”) approved Resolution 4,841 (“Resolution 4,841/2020”) and Resolution 4,844 (“Resolution 4,844/2020”), which aim to simplify and reduce the costs of compliance with the rules regarding the duty to declare Funds held Abroad by Brazilian Residents (Capitais Brasileiros no Exterior – CBE) as well as transactions in deposit accounts in Brazilian Reais held by non-Brazilian residents.
Resolution 4,841/2020 amended Resolution CMN 3,854, of May 27, 2010, to increase the amount that Brazil-based individuals and legal entities are obliged to inform the Central Bank of Brazil on an annual basis of funds held abroad (Capitais Brasileiros no Exterior – CBE), from USD100,000.00 (One Hundred Thousand US Dollars) to USD1,000,000.00 (One Million US Dollars), or its equivalent in other currencies.
Resolution 4,844/2020 amended Resolution CMN 3,568, of May 29, 2008, to increase the amount that must be declared to the Central Bank of Brazil regarding transactions in deposit accounts in Brazilian Reais held by non-Brazil-based individuals and legal entities carried out in banks authorized to operate in the foreign exchange market, from BRL10,000.00 (Ten Thousand Brazilian Reais) to BRL100,000.00 (One Hundred Thousand Brazilian Reais). Additionally, in accordance with Resolution 4,844/2020, the Central Bank of Brazil may determine situations in which it will be required to report transactions in amounts lower than the new limit of BRL100,000.00 (One Hundred Thousand Brazilian Reais).
Resolution 4,841/2020 and Resolution 4,844/2020 will come into effect on September 1, 2020.
Demarest’s Banking and Finance team is closely monitoring these and other measures and is ready to assist you in any matters regarding this topic. For more information, please feel free to contact us.