Norm - Resolution number 2592

Resolution number 2592

Makes provisions on the representation, within Brazil, of financial institutions or similar institutions with head office abroad.

The Central Bank of Brazil, under Article 9 of Law 4,595, of 12/31/1994, brings to the knowledge of the public that the National Monetary Council, on a meeting held on 02/25/1999, based on Article 4(VIII), and in view of provisions of Article 64 of Decree-law 2,627, of 09/26/1940, and of Article 10(X) and Article 10, Paragraphs One and Two, of such Law,

RESOLVED:

Article 1 - The representation within Brazil of a financial institution or similar institution with head office abroad depends on previous authorization by the Central Bank of Brazil.

Paragraph One - The representation mentioned in this Article 1:

I - may only be performed by natural or juristic person or persons domiciled within Brazil;

II - shall have the goals of making commercial contacts and transmission of information of interest of the head office or branches abroad, and may not perform operations which are exclusive of financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Article 2 - The Central Bank of Brazil shall establish the conditions to be complied with for granting the authorization envisaged in this Resolution, and is hereby authorized to issue the norms and practice the acts as necessary for the performance hereof.

Paragraph One - Upon taking knowledge of the information on the appointing institution and the representative or representatives so appointed, the Central Bank of Brazil may grant or refuse the authorization sought, based on, among others issues, national interests and international agreements.

Article 3 - The Central Bank of Brazil shall have unrestricted access to documents, reports, data and information related to the activities performed by the representative or representatives within Brazil.

Article 4 - The appointing institution and its representative or representatives are liable, under the legislation in effect, for any condition which may imply performance of operations prohibited under this Resolution.

Article 5 - This Resolution shall be effective upon publication.

Brasília, February 25, 1999
Demosthenes Madureira de Pinho,
Acting President.