Regulatory update – Brazil

According to Article 10 of Law 14.286/2021, the Central Bank of Brazil is responsible for collecting information about Brazilian capital held abroad, as well as foreign capital in the country.

 

Brazilian capital abroad (CBE) refers to funds, assets, rights, and properties of any kind owned by residents of Brazil outside the national territory. Examples include ownership stakes in foreign companies, shares in investment funds held outside Brazil, and loans or financing extended to non-residents of Brazil.

 

This periodic declaration submitted to the Central Bank serves as a key source of data for compiling the country’s external sector statistics, such as the Balance of Payments and International Investment Position.

 

Brazilian residents, both individuals and legal entities, must submit the declaration annually or quarterly, depending on their situation, if they hold foreign assets amounting to:

 

✔ US$ 1,000,000 or the equivalent in other currencies, as of December 31 of each year – Annual CBE.

 

✔ US$ 100,000,000 or the equivalent in other currencies, as of March 31, June 30, and September 30 of each year – Quarterly CBE.

 

Failure to submit the required information to the Central Bank of Brazil, or the submission of false, incomplete, or non-compliant data, constitutes an infraction subject to penalties imposed by the Central Bank. Fines for non-submission or other violations under the law range from R$ 2,500,00 to R$ 250,000,00 and may be increased by up to 50% in some cases.