BRAZIL Law and Practice Contributed by: Thomas Gibello Gatti Magalhães, André Dágola Brostoline and Luisa Grespan Danhoni Neves, Magalhães & Zettel
ing. The main requirements to be implemented by the institutions are as follows: • implementing and maintaining an internal policy based on principles and guidelines that seek to prevent PLD/FT practices, compat - ible with the risk profiles of customers, the institution, operations, transactions, products, services and employees, partners and out - sourced service providers; • having a governance structure in order to ensure compliance with the policy mentioned above and the PLD/TF internal procedures and controls; • carrying out internal assessment with the purpose of identifying and measuring the risk of using their products and services in money laundering and terrorist financing; • implementing procedures aimed at knowing their clients, including procedures that ensure due diligence in their identification, quantifica - tion and classification, including for adminis - trators of corporate clients; • implementing procedures that allow them to qualify their clients as politically exposed persons; • maintaining records of all operations car - ried out, products and services contracted, including withdrawals, deposits, contribu - tions, payments, receipts, transfers of funds and transactions in the foreign exchange market; • implementing procedures for monitoring, selecting and analysing transactions and situations in order to identify and pay special attention to suspicions of money laundering and terrorist financing; • reporting transactions or suspicious situations of money laundering and terrorist financing to the Council for Financial Activities Control (COAF);
• implementing procedures aimed at knowing their employees, partners and outsourced service providers, including identification and qualification procedures; • establishing monitoring and control mecha - nisms, in order to ensure the implementation and adequacy of the policy mentioned in the first point above, the procedures and internal controls; and • assessing the effectiveness of the policy, procedures and internal controls. In this context, BCB is also responsible for: • monitoring and supervising the compliance of supervised entities with the rules in force; • maintaining the Customer Register of the National Financial System (CCS), which is set out as a system for registering the relations between financial institutions and other enti - ties authorised by BCB and customers; • communicating: (a) evidence of crimes related to money laun - dering and terrorist financing to COAF; (b) evidence of crimes of public action identi - fied in the exercise of its duties to the Public Prosecutor’s Office; and (c) any irregularities and administrative un - lawful acts of which it becomes aware to the competent public agencies; • applying administrative sanctions when viola - tions of the rules by the supervised entities are identified; and • participating in relevant national and interna - tional forums. By adequately complying with the regulations established by BCB, the supervised entities promote the effectiveness of the PLD/FT sys - tem, through risk management and the imple - mentation of effective policies, procedures and controls, assisting the state in the identification
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