The Chamber of Deputies approved a bill that establishes punishments for those who discriminate against politically exposed persons in banks and other financial institutions. The text, which will now be forwarded to the Senate, provides for a prison sentence of 2 to 4 years, in addition to a fine, for those who refuse to open or maintain accounts, grant credit or provide other services.
The project covers elected politicians and holders of high positions in the three powers (Executive, Legislative and Judiciary), as well as in the federal, state and municipal spheres. In addition, the proposal also applies to persons who are under preliminary investigation, detailed term, inquiry or any other investigative procedure of criminal, civil or administrative infraction, as well as to those who are defendants in ongoing legal proceedings (without final judgment). .
In the case of politically exposed persons, the project also covers the legal entities of which they are part, as well as their relatives and close collaborators. Relatives of up to the second degree in the direct line, spouse, partner and stepchildren are considered relatives.
The project also encompasses those people who are abroad: heads of state or government; senior politicians; holders of senior government positions; general officers; members of higher echelons of the Judiciary; top-level executives of public companies and leaders of political parties.
In addition, the text also considers politically exposed leaders of higher echelons of entities governed by public or private international law, such as bodies of the United Nations.
In order to identify politically exposed persons, it will be necessary to consult the National Register of Politically Exposed Persons (CNPEP), available on the Transparency Portal, or other official public authority databases. In the case of foreigners or people from abroad, open sources and public and private databases will be consulted.
The project establishes that the condition of politically exposed person lasts for five years, starting from the date on which the person ceases to hold the aforementioned positions.
Financial institutions will also be affected.
The project proposes changes to the law that deals with the sanctioning administrative process of financial institutions (Law 13,506/17), requiring a document that justifies cases of denial of services.
In the case of credit, the document must contain a technical and objective justification for the refusal, not being acceptable the allegation of refusal based solely on the status of a politically exposed person of the applicant, or because the person is a defendant in a legal proceeding in course or have a condemnatory decision without final judgment.
If the legal representative of the financial institution refuses to provide these documents to the applicant, he will be liable for any moral and property damage caused, in addition to being subject to criminal prosecution.
Documents must be delivered within five business days, under penalty of a daily fine of R$ 10,000.
Criticism and defense of the project
Transparency International (TI) issued a note criticizing the accelerated pace with which the project was processed and argues that it directly attacks a fundamental instrument in the fight against money laundering and the use of “oranges” (people used to hide the true identity of the beneficiary of a financial transaction). According to the organization, monitoring and taking measures to mitigate risks related to public office holders are crucial in the fight against corruption and terrorist financing.
According to TI, the project jeopardizes the assessment of international bodies on compliance with anti-corruption measures and the fight against money laundering, such as the Anti-Bribery Working Group of the Organization for Economic Cooperation and Development (OECD), the on International Financial Action (FATF) and the United Nations Convention against Corruption (UNCAC).
On the other hand, the leader of the União Brasil party, deputy Elmar Nascimento (BA), defended the project, arguing that its objective is not to create privileges, but to ensure that people who intend to enter public life are not intimidated by financial rules.
“It is inadmissible that a son or nephew of a politician, who does not have any problems, has his bank account blocked simply because he is a relative of a politician”, said the deputy. He stated that these rules keep people away from public life.
The Chamber of Deputies approved a bill that establishes punishments for those who discriminate against politically exposed persons in banks and other financial institutions. The text, which will now be forwarded to the Senate, provides for a prison sentence of 2 to 4 years, in addition to a fine, for those who refuse to open or maintain accounts, grant credit or provide other services.
The project covers elected politicians and holders of high positions in the three powers (Executive, Legislative and Judiciary), as well as in the federal, state and municipal spheres. In addition, the proposal also applies to persons who are under preliminary investigation, detailed term, inquiry or any other investigative procedure of criminal, civil or administrative infraction, as well as to those who are defendants in ongoing legal proceedings (without final judgment). .
In the case of politically exposed persons, the project also covers the legal entities of which they are part, as well as their relatives and close collaborators. Relatives of up to the second degree in the direct line, spouse, partner and stepchildren are considered relatives.
The project also encompasses those people who are abroad: heads of state or government; senior politicians; holders of senior government positions; general officers; members of higher echelons of the Judiciary; top-level executives of public companies and leaders of political parties.
In addition, the text also considers politically exposed leaders of higher echelons of entities governed by public or private international law, such as bodies of the United Nations.
In order to identify politically exposed persons, it will be necessary to consult the National Register of Politically Exposed Persons (CNPEP), available on the Transparency Portal, or other official public authority databases. In the case of foreigners or people from abroad, open sources and public and private databases will be consulted.
The project establishes that the condition of politically exposed person lasts for five years, starting from the date on which the person ceases to hold the aforementioned positions.
Financial institutions will also be affected.
The project proposes changes to the law that deals with the sanctioning administrative process of financial institutions (Law 13,506/17), requiring a document that justifies cases of denial of services.
In the case of credit, the document must contain a technical and objective justification for the refusal, not being acceptable the allegation of refusal based solely on the status of a politically exposed person of the applicant, or because the person is a defendant in a legal proceeding in course or have a condemnatory decision without final judgment.
If the legal representative of the financial institution refuses to provide these documents to the applicant, he will be liable for any moral and property damage caused, in addition to being subject to criminal prosecution.
Documents must be delivered within five business days, under penalty of a daily fine of R$ 10,000.
Criticism and defense of the project
Transparency International (TI) issued a note criticizing the accelerated pace with which the project was processed and argues that it directly attacks a fundamental instrument in the fight against money laundering and the use of “oranges” (people used to hide the true identity of the beneficiary of a financial transaction). According to the organization, monitoring and taking measures to mitigate risks related to public office holders are crucial in the fight against corruption and terrorist financing.
According to TI, the project jeopardizes the assessment of international bodies on compliance with anti-corruption measures and the fight against money laundering, such as the Anti-Bribery Working Group of the Organization for Economic Cooperation and Development (OECD), the on International Financial Action (FATF) and the United Nations Convention against Corruption (UNCAC).
On the other hand, the leader of the União Brasil party, deputy Elmar Nascimento (BA), defended the project, arguing that its objective is not to create privileges, but to ensure that people who intend to enter public life are not intimidated by financial rules.
“It is inadmissible that a son or nephew of a politician, who does not have any problems, has his bank account blocked simply because he is a relative of a politician”, said the deputy. He stated that these rules keep people away from public life.
