Statement of Brazilian Capital Abroad (“CBE”) before the Brazilian Central Bank (“BACEN”)

This is an electronic newsletter informing on the Statement of Brazilian Capital Abroad (“CBE”) before the Brazilian Central Bank (“BACEN”).

According to the new BACEN Resolution No. 279, published on December 31, 2022, individuals and legal entities with residence or headquarters in Brazil must declare annually to BACEN the assets they have abroad (such as goods, rights, financial instruments,  virtual assets, derivatives, deposits, properties, corporate participations, stocks, titles, fundings, direct loans and commercial credits granted in Brazil to non-residents, among others), totaling an amount equal to or greater than the equivalent to one million United States dollars (US$1,000,000.00), on December 31 of each year.

If individuals and legal entities hold assets abroad that total an amount equal to or greater than the equivalent to one hundred million United States dollars (US$100,000,000.00), the CBE must be stated quarterly, regarding the base dates of March 31, June 30 and September 30 of the current year.

The reporting deadlines are the following:

I – the annual statement referring to the base date of December 31, 2022, must be submitted to BACEN between February 15 and 6:00 pm on April 5, 2023;

II – the quarterly statement referring to the base date of March 31, 2023, must be submitted to BACEN between April 30 and 6:00 pm of June 5, 2023;

III – the quarterly statement referring to the base date of June 30, 2023, must be submitted to BACEN between July 31 and 6:00 pm of September 5, 2023;

IV – the quarterly statement referring to the base date of September 30, 2023, must be submitted to BACEN between October 31 and 6:00 pm of December 5, 2023.

Besides resident individuals or legal entities that hold Brazilian capital abroad, the following are responsible for submitting the above-mentioned information to BACEN: i) the depositary institution of Brazilian Depositary Receipts; ii) the investment fund with investments abroad, through its managers; and iii) the resident beneficiary of agreements for the transfer of ownership of assets to a fiduciary agent abroad.

Failure to comply or the irregular compliance with the regulations in force may subject those responsible to a fine of up to two hundred and fifty thousand Reais (R$ 250,000.00), which may be increased by up to fifty per cent (50%), in the event that, duly notified by BACEN, those responsible fail to make, correct or complement such statement.

Should you deem necessary, we are at your entire disposal to clarify any additional doubt and/or to assist with the above-mentioned reports and updates.

Corporate Department

equipesocietario@almlaw.com.br