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Information collection, sharing, availability

Brazil is implementing measures and regulations to ensure that information on beneficial owner of companies is obtained, verified, recorded and kept up-to-date

Country: Brazil

Status: inactive

Themes: Beneficial ownership

Last updated: December 2020

Classification:

Concrete: Somewhat Concrete | New: Somewhat New | Ambitious: Somewhat Ambitious

  • 3 Evidence:

    Instrução Normativa RFB nº 1914, de 26 de novembro de 2019

    Instrução Normativa RFB nº 1863, de 27 de dezembro de 2018

    'Register of Beneficial Ownership' from KPMG - Focus on Brazil among others

  • 4 Notes:

    No updates were identified. A beneficial ownership definition was introduced into the Brazilian legal framework in 2016, by the Federal Revenue Service’s (RFB) Ordinance nº 1.634. The Ordinance required all legal persons to provide information about their beneficial owners to the National Registry for Legal Persons, which is maintained by the RFB. This information is accessible to law enforcement authorities, but it was also expected to become publicly available in open data format. Ever since, the deadline for legal entities to provide information on their beneficial owners has been successively postponed. In 2018, Ordinance nº 1.863 came into force, changing the legal framework to separate beneficial ownership data from other information kept by the RFB, meaning the information on beneficial owners must be provided by legal persons but they will not be available to the public. Therefore, Brazil has pressing need for a clear and solid rule defining beneficial ownership, mandating the collection of this information and establishing a transparency policy – with open, machine-readable, accessible and timely data. This is an important gap in the country’s anti-money laundering efforts.

    Peer reviewer: 1

    Updated: October 31, 2020

    Deadlines for the declaration of beneficial owners were successively postponed by the Federal Revenue Service. In the most recent case, the time limit was postponed until 27 July 2019, with no further updates. Despite the fact that the agency is legally bound to publish the information and companies who fail to do so are going to be punished, according to the Federal Open Data Policy (Decree no. 8.777/2016), it is still not clear if data on beneficial owners will be made available.

    Updated: April 30, 2020

    Normative ruling obliges new companies (issuing a tax ID number July 2017 onwards) to inform beneficial owners -- established companies must do the same until 31 December 2018. However, it is not clear if and how the tax authorities are going to share such information with other authorities -- it is not clear either about enforcement and implementation, once the first deadline , 1 January 2017, was postponed until 1 July 2017.

    Updated: June 30, 2018

Brazil's Commitments
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