Put Andre Jerusalem  – 03/06/2020 

On May 18, 2020, the Brazilian Securities and Exchange Commission (CVM), through the Superintendence of Institutional Investor Relations (SIN), published Circular Letter No. 8/2020/CVM/SIN (“Circular Letter”) with guidelines for securitization companies on how to act in relation to the best ways to prevent money laundering and the financing of terrorism (“PLDFT”).

As provided in the Official Letter, the Brazilian AML/CFT system is organized in such a way that COAF is responsible for supervising all economic segments for which there is no specific supervisory or regulatory body. In this sense, financial credit securitization companies regulated by Resolution No. 2,686 of January 26, 2000, of the National Monetary Council (CMN) that are not incorporated as publicly-held companies and do not distribute issues publicly are not under the jurisdiction of CVM and are therefore subject to analysis by COAF. contrary sensu, the securitization companies provided for in Laws No. 9,514, of November 20, 1997, and No. 11,076, of December 30, 2004, are regulated and subject to the jurisdiction of the CVM.

We remain available to assist our clients with any questions regarding the best way to comply with the rules related to PLDFT, as well as good practices related to securitization companies and other publicly-held companies.