BRAZIL Law and Practice Contributed by: Thomas Gibello Gatti Magalhães, André Dágola Brostoline and Luisa Grespan Danhoni Neves, Magalhães & Zettel
of financial transactions that may present suspi - cious characteristics and that, therefore, require investigation. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) The Credit Guarantee Fund (FGC) is a non-profit civil association, established by CMN Resolution No 2,197/1995, with the purpose of guarantee - ing credits to customers of financial institutions authorised to operate by BCB and that are asso - ciated with FGC. The coverage offered by FGC includes deposits in financial institutions up to the limit of BRL250,000 per individual or legal entity, per institution, observing the ceiling of BRL1 million every four years, considering the total number of institutions in which the cus - tomer has funds. FGC is supported by monthly contributions from Brazilian financial institutions, corresponding to 0.0125% of the total amounts traded in products covered by the fund. Deposits covered by FGC include: • deposits in cash or deposits withdrawable
• repurchase transactions that have as their object bonds issued after 8 March 2012 by a related company. BCB Resolution No 102/2021 regulates the preparation and sending of information related to financial instruments guaranteed by FGC. According to this rule, financial institutions must have systems and controls capable of generat - ing an electronic file, within two business days, containing: • identification of the holder of the secured credit; • the type of financial instrument representing the credit; • an identifier of the financial instrument; • the acquisition date of the instrument by the credit holder; • the classification of the credit holder and condition of ownership control of the financial instrument guaranteed by FGC; and • the amount of the credit held by the holder. In addition, institutions are required to submit, by the tenth business day of each month, aggregate information on secured credits to FGC, based on the position of the last business day of the previous month. This information must cover the classification of the type of financial instrument guaranteed, the type of credit holder, the owner - ship control condition and the amount range of the credits held by the holders. 7. Prudential Regime 7.1 Capital, Liquidity and Related Risk Control Requirements The Basel III rules were incorporated into the Brazilian legal system in 2013, through four reso - lutions of the National Monetary Council (CMN)
upon prior notice; • savings deposits; • bills of exchange; • mortgage bills;
• real estate bills of credit; • agribusiness bills of credit;
• term deposits, with or without the issuance of a certificate, such as the Bank Deposit Receipt (RDB) and the Bank Deposit Certifi - cate (CDB); • deposits in accounts not operated by checks, intended for the registration and control of the flow of funds for the payment of salaries, maturities, retirements, etc; and
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