Declaration of Amounts, Property, Rights and Assets Held Abroad to the Central Bank

The annual declaration of Brazilian Capital held Abroad (DCBE) to the Brazilian Central Bank (“Bacen”), referring to the base date of December 31, 2022, must be submitted by April 05, 2023.

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

• that are resident, domiciled or headquartered in Brazil; and
• that held, outside Brazilian territory, amounts, property, rights and assets of any nature that amounted to or exceeded USD 1,000,000.00 on the base date of December 31, 2022.

Among the assets that must be reported are the following:

1. ownership shares in non-resident corporations;
2. real estate certificates of deposit (“BDRs”) issued by non-resident corporations;
3. quotas from investment funds held abroad;
4. debt instruments issued by non-residents;
5. loans and financing granted to non-residents;
6. deposits held in non-resident entities;
7. commercial credit granted to non-residents;
8. property located outside Brazil;
9. virtual assets;
10. derivatives negotiated outside Brazil;
11. revenues from exports maintained outside Brazil and how they are allocated; and
12. income resulting from Brazilian capital held outside the country.

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

Additionally, Bacen is required to ensure confidential processing of all data received. Therefore, in the event that Bacen decides to disclose such information, it must do so without identifying 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.