Deadline for submitting the Annual Report of Brazilian Capital held Abroad enters into force

The Annual Report of Brazilian Capital held Abroad (“DCBE”) to the Brazilian Central Bank (“BC”), referring to the base date of December 31, 2023, must be submitted from February 15 to April 05, 2024.

The annual report must be submitted by all individuals and legal entities:

• that are resident, domiciled or headquartered in Brazil; and
• that held, outside the Brazilian territory, assets of any nature that amounted to or exceeded USD 1,000,000.00 on the base date of December 31, 2023.

Among other assets, the DCBE encompasses the following amounts, goods, rights, and assets:

1. ownership shares in companies located outside Brazil;
2. Brazilian Depositary Receipts (BDRs);
3. quotas from investment funds held outside Brazil;
4. debt instruments issued by non-residents in Brazil;
5. loans and financing granted to non-residents in Brazil;
6. deposits held in entities located outside Brazil;
7. commercial credits against non-residents;
8. property located outside Brazil;
9. virtual assets in exchanges and wallets maintained outside Brazil;
10. derivatives negotiated outside Brazil; and
11. revenues from exports maintained outside Brazil, among others.

Failure or delay to report the information required by the BC – as well as submission of false, incomplete, incorrect or noncompliant information – constitute violations that are subject to the application of fines by the BC.

Additionally, the BC is required to ensure the confidential processing of all data received. Therefore, in the event that the BC decides to disclose such information, the BC must not disclose any individual cases.

Demarest’s Banking and Finance team is available to provide any further clarifications that may be necessary and to assist you in complying with this obligation.