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Resolution BCB No. 410 updates rules for registering foreign investments, removes some reporting obligations, and reorganizes information disclosure
On October 1st, the Central Bank of Brazil issued Resolution BCB No. 410, dated September 11, 2024, which amended Resolution BCB No. 278, dated December 31, 2022.
In addition to the obligation to register foreign direct investments made through the use of virtual assets in the SCE-IED as per the information provided, the regulations regarding the reporting of foreign capital and periodic declarations have also been updated.
The main innovations introduced include:
- (i) the removal of the obligation to update, within 30 days, the amount of capital contributed by each investor after changes in corporate structure through the inclusion of the Shareholder Structure. This update will only be required when submitting a new Periodic Declaration, if requested by the receiving company, according to the criteria for obligation;
- (ii) the removal of the obligation to report movements
resulting from:
- (a) transfer, exchange, and conferment of shares or quotas between resident and non-resident investors, or between non-resident investors;
- (b) corporate restructuring; and
- (c) reinvestment; and
- (iii) the change in the method of submitting periodic declarations.
The new regulation also proposed the regrouping and rationalization of the information to be reported in the SCE-IED regarding the following occurrences: (i) distribution of profits and dividends; (ii) payment of interest on equity (JCP); (iii) acquisition of residents; (iv) disposal to residents; (v) return of capital and net assets resulting from liquidation; and (vi) capitalization of profits, dividends, and JCP, among other capitalizations.
In this context, it is important to highlight that the obligation to submit periodic declarations remains in effect. The annual declaration for the reference date of December 31, 2024, must be submitted between February 10 and March 31, 2025, when the new functionality of the SCE-IED for this purpose will be fully implemented.
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