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New Brazilian Law on Money Laundering
Law
12,683 was enacted on July 9 2012, amending the existing Law 9,613/98
to incorporate into Brazilian legislation international requirements against
money laundering. The Board of Control of Financial Activity (COAF) is the national
agency in charge of anti-money laundering activities. Law 12,685 provided
additional instruments to COAF. The main changes introduced by Law 12,683 are:
(i)
Extended the definition of money laundering to concealment or disguise of
goods, rights or funds derived from any criminal activity or from participation
in such activity.
While
the previous definition limited the money laundering concept to concealment or
disguise of goods, rights or funds arising out of specific criminal conducts,
the present definition encompasses goods, rights or funds arising out of any
kind of criminal activity.
(ii)
Extended to various entities, which include the Stock Exchange and
over-the-counter market systems, realtors and companies that commercialize real
property, companies and natural people that commercialize high value luxury
goods, artists and football agents, among others, the obligation to communicate
suspicious operations to COAF.
(iii)
Increased the penalty for who fails to provide the mandatory communication to COAF,
from R$200,000.00 to R$20,000,000.00.
(iv)
Allowed the sale of seized assets prior the conviction sentence.
Foreign Financial Institutions back to
Export Prepayment Transactions
On
June 28 2012, Brazilian Central Bank issued Circular 3,604 amending
export prepayment rules. Circular 3,604 revokes Circular 3,580 of March 1 2012 and reintroduces the ability of any foreign entity (and not only
importers), including financial institutions, to prepay exports made by
Brazilian companies. The prohibition imposed on foreign financial institutions
to carry out export prepayment transactions lasted for a very short term (from
March 1 to June 28). However, the 360-day prepayment limitation
period introduced by Circular No. 3,580 has been maintained and is in full
force and effect.
Committee of Mergers and Acquisitions
On
June 27 2012 the BM&FBOVESPA, the Brazilian Financial and Capital Markets Association (ANBIMA), the Brazilian Corporate
Governance Institute (IBGC) and the Capital
Market Investors Association (AMEC) created the Mergers and Acquisitions Committee (CAF). CAF's
purpose is assuring an equitable
treatment to shareholders in public offerings (IPO), mergers, acquisitions and
spin-off, by reviewing these operations, of listed companies that voluntary
submit to CAF. How will CAF work and which entity will support it is still
under discussion by the agencies.