FATCA is a mandatory measure with which all Brazilian financial institutions must comply by identifying and providing informations about those clients denominated US Persons.
On September 23, 2014, the American and Brazilian governments signed, an Intergovernmental Agreement, under which Brazil and the United States will exchange information, annually regarding the account holders provided by the financial institutions of each country.
B&T is registered with the U.S. Internal Revenue Service [IRS] as an exchange brokerage and must provide information about their clients’ exchange operations. [IN RFB nº 1571, July 2nd 2015].
● Those Born in the United States of America and its territories, except those who abdicate citizenship;
● Permanent residents in the United States (including green card holders)
● People who have lived in the US and territories for more than 30 days in the last year or more than 180 day in the past 3 years.
● Those who have dual citizenship and an American passport, even those living outside the US;
● People who have at least one parent that is an American citizen;
● People who, before completing 18 years of age, have parents that have become American citizens.
● Account holders in any American financial institution;
● People who have a source of income in the territory of the United States
● Any person who has a corporate stake of more than 10% in a US company.
● It is the country of residence for tax purposes [income tax declarations, for example]
● The address of the tax residency can be different from the one at which the client lives.
● People described above are considered to have their tax residency in the United States. The client must provide another tax residency if it is not located in the United States.
● A client can have a US TIN - Taxpayer Identification Number [as the Brazilian CPF] or a Social Security Number [as INSS in Brazil
In compliance with the requirements of the Brazil’s Central Bank in Resolution No. 4,433 / 15, the National Monetary Council established that financial, and other institutions authorized to operate by Brazil’s Central Bank, should constitute an organizational component of ombudsman’s office.
The aforementioned legislation, decrees that institutions must disclose information on the activities carried out by the ombudsman’s office on a semiannual basis in their respective websites.
In regard to messages received, registered and answered to customers in the 2nd semester of 2016, the ombudsman’s office registered 09 (nine) complaints.
In our system, it is possible to register client manifestations in the following categories: false or offensive advertising, unfair rates/fees, customer service complaints, other complaints, suggestions, and compliments.
The 09 (nine) complaints were duly analyzed and categorized as "Other Claims" and "Complaint about Costumer Service", of which 07 (seven) were classified as "unfounded" because we understand that there was no internal irregularity or damage or to the user, and 02 (two) classified as "valid”.
The 02 (two) incidents classified as "valid" were answered within 10 (ten) business days. Due to the fact that no irregularity occurred, the events served as an instrument for the Ombudsman office, together with the Internal Controls Department, to propose improvements in B & T processes.
The following chart shows the origins of the nine (9) manifestations:
This Policy aims to ensure that Brazil’s Anticorruption Law requirements (Federal Law nº 12.846, August 1st, 2013) and B&T’s guidelines will be observed to guarantee the highest standards in regards to integrity, legality, transparency in our business.
This Policy applies to all employees, trainees and directors ["Contributors"], as well as to service providers and suppliers.
B&T’s principle concern is to comply with the laws and anticorruption regulations in their business interactions. Everyone should act responsibly with ethics and integrity in order to represent anti-corruption practices at their best and to reduce the risk of B&T’s image and reputation.
B&T repudiates any form of corruption, basing its business on transparency and adopting principles and using as guides the best corporate governance practices.
Corruption Relating to a state or situation of dishonest, fraudulent or illegal behavior that involves exchange of money, monetary values, advantages, benefits or services for personal gain and/or advantage [making oneself available for, requesting, authorizing, offering or receiving bribes].
Bribery Defined as an intentional offer, suggestion, payment or authorization of a payment towards another for personal gain with the intention of stimulating active or passive misuse of official duties or to ensure the execution of a task.
Bribe A specific form of bribery given in exchange for conferment of payments or contracts or other related business activities.
Government and Government representative These terms include Executive, Legislative and Judicial offices, public administrative posts—both direct and indirect, autarchic or foundational—in Federal, State, Municipal, Diplomatic and Transnational spheres, including public and mixed enterprises, public-private partnerships, postal entities, political parties, political candidates and their representatives, and Politically Exposed Persons [PEP].
Facilitating payments Any payment that aims to ensure the implementation of an action or service or to speed up governmental actions, services or acts.
Despite being regarded as a risk primarily to the public sector, corruption also threatens the private sector, creating uncertainty in business relationships, increasing costs, constraining international trade, reducing growth and local and global investments, and, therefore must be addressed by the private sector, in a national and transnational degree.
The following practices are prohibited:
a) To give bribes, payments or offers of anything of value to any government official in any country, at any level of government, in order to influence in a corrupt manner the decisions or actions of a government representative because of their position or function; to induce government representatives to act wrongfully or to not exercise the authority of their government; to wrongfully obtain or hire contracts or any other such advantages.
b) Bribes, payments or offers of anything of value made to any person with whom B & T keeps business relationships, in order to influence decisions or induce such persons to wrongly perform their duties to obtain improper advantage.
c) Facilitating payments are prohibited.
7.1 Gifts, presents, travels and entertainment In no circumstances may gifts, presents, trips or forms of entertainment be given to any person, whether public official or otherwise, to influence or reciprocate an act or decision made improperly for B&T’s benefit, its partners or collaborators.
Any gifts, presents, trips, benefits or other ways of entertainment provided to public officials should be previously evaluated and approved by B&T’s Board.
In order to avoid the appearance of improper relations with anyone, whether public official or otherwise, B&T’s Code of Ethics and Conduct, is available on intranet, and establishes guidelines on this matter.
7.2 Processo de Compras
a) All the purchasing process should be done according to B&T’s Procurement and Contracting Services Policy, which prohibits the purchase of goods and services through the misuse of influence on any person, whether public agent or otherwise.
b) B&T’s Procurement and Contracting Services Policy establishes internal guidelines and specific rules about the purchasing process and the hiring of services with which everyone should act in conformity.
c) During the bidding process with suppliers, any gifts or entertainment that might influence or improperly offset an act or decision must not be received or offered to any person or entity, whether public or otherwise, as actual compensation aimed at benefitting B & T and its partners.
7.3 Hiring of Service Providers and Affiliates
a) B&T does business only with services providers and affiliates that have unblemished reputation and integrity.
b) Any service provider or any B&T affiliates, acting on behalf of B&T, are prohibited, under any circumstances, from exerting any undue influence on any person, whether public or private.
c) From the date of publication of this Policy, anti-corruption clauses should be included to ensure compliance with this policy in all service provider and affiliate contracts.
7.4 Hiring of Politically Exposed Persons [PEP]
In contracts all steps for proper evaluation of the experience, competence and integrity before signing should be taken, especially those involving politically exposed persons. It will be up to the discretion of Human Resources Department, together with management, to evaluate candidates taking into account the inclusion of anti-corruption provisions in formal negotiating contracts.
7.5 Hiring of Suppliers
a) All suppliers should be made aware of this policy upon hiring, by signing the "Letter of Adherence to the Code for B&T’s Suppliers and Subcontractors " This policy is available on B & T’s website http://btcorretora.com.br/informacoes-legais.php , under the Compliance tab.
b) The Administrative Department is responsible for ensuring that all suppliers adhere to this policy by signing the Letter of Adherence to the Code for B&T’s Suppliers and Subcontractors.
7.4 Doações para Caridade
B&T’s donations to charity organizations should be previously analyzed by the Board, in order to assure the intent of the donation and to avoid that the donation is being used as a way to obtain illegal advantages for that organization’s employee(s), especially if the person is a representative of the government. Any payments of this nature will only be approved if they are made directly to the charity organization. Therefore it is prohibited to have a third party involved in the payment.
7.4 Foreign Exchange Contracts
From the date of publication of this Policy, anticorruption clauses should be included in all exchange contracts signed by B & T to assure that the customers will observe Anti-Corruption Law requirements.
B & T will hold, at a minimum of every five years, an internal audit to evaluate compliance with Anti-Corruption Laws and this policy.
7.4 Awareness and Training
B & T will maintain an awareness program about anti-corruption laws for its employees, service providers and affiliates.
This program will be promoted by the Department of Compliance through classroom training or online video conferences, teleconferences, booklets etc.
Violation of anti-corruption rules is a serious issue that could result in grave criminal and/or civil penalties for B & T and the people involved.
Suspected cases of corrupt activity should be immediately reported to the Compliance Department through the e-mail firstname.lastname@example.org and / or to the Board.
Failure to comply with the provisions contained in this Policy are subject to disciplinary action, including termination of employment, administrative or criminal actions, in addition to the penalties provided by law.
Any questions regarding the provisions on this document can be clarified by the Compliance Department, through the email email@example.com.
Operational risk is the possibility of financial loss resulting from failure, deficiency or inadequacy of internal processes, people and systems, or from external events. It also includes the legal risk due to the inadequacy or deficiency in contracts signed by an institution, as well as the sanctions arising from non-compliance with legal provisions and damages for third parties arising from institution activities. Operational risk stems from internal or external fraud, labor claims, improper processes and practices with clients or relating to products and services, improper disruption of the institution’s activities, failures in systems and processes, and non-compliance with contractual or regulatory deadlines.
B & T’s risk management is based on the strategies established by the Executive Board and is regulated by Policies that follow regulatory agencies’ regulations and executed through mechanisms developed and followed by the control areas. The operational risk management structure is compatible with the nature of B&T’s operations, the complexity of its products and the exposure of risks that the institution is subject to.
To address this, B & T has mechanisms to identify, evaluate, control, implement and monitor the effectiveness of the adopted course of action to minimize the recurrence of operational risk events.
B & T is not included in the list of financial institutions required to publish its operational risk management structure, as established in Circular 3,678, dated October 31, 2013, of Brazil’s Central Bank, presenting only an internal memorandum, filed in an internal control system, with the purpose of registering the board approval of its risk management structures for the current year, and available to regulatory agencies when requested.
Liquidity risk represents the ability of the institution to be unable to honor and settle its financial obligations, contracted or potential, current or future, regardless of their nature, without compromising day-to-day operations or incurring significant losses. Liquidity risk arises from the mismatch between volumes and maturities, between rights and obligations, a mismatch that makes it impossible to honor and settle financial obligations.
B & T’s liquidity risk management is based on the strategies established by the Executive Board, and is regulated by Policies that follow regulatory agencies’ regulations and carried out through mechanisms developed and followed by the control areas. The liquidity risk management structure is compatible with the nature of B&T’s operations, the complexity of its products and the exposure of risks that the institution is subject to.
In addition, given B&T’s low liquidity risk, management is basically carried out by analyzing the history of cash flows in real and in foreign currency in short and medium term.
To meet the requirements of our daily financial routine, B & T adopted statistical indicators that serve as a reference for minimum maintenance of cash in normal and volatile environments.
B & T is not included in the list of financial institutions required to publish its liquidity risk management structure, as established in Circular 3,678, dated October 31, 2013, of Brazil’s Central Bank.
Market risk represents the possibility of the occurrence of losses arising from the fluctuation in the market values of positions held by a financial institution. These losses can be derived from price changes in the foreign exchange, interest rate, stock or commodity markets. Market risk occurs when the positions held have their value changed, due to changes in prices in the market.
B & T’s market risk management is based on the strategies established by the Executive Board and is regulated by Policies that follow the regulations of the regulatory agencies and carried out through mechanisms developed and followed by the control areas. The market risk management structure is compatible with the nature of B&T’s operations, the complexity of its products and the exposure of risks that the institution is subject to.
To address this risk, market risk management is supported by appropriate technology solution and monitored by an employee assigned to the role of risk manager under the direct supervision of the responsible director in compliance with the requirements established. The technological solution, with the application of quantitative methods, interacts with the accounting system, providing and extracting information, together with the other capital allocation requirements.
B & T is not included in the list of financial institutions required to publish its market risk management structure, as established in Circular 3,678, dated October 31, 2013, of Brazil’s Central Bank.
Credit risk represents the possibility of losses associated with the failure of the borrower or counterparty to meet their respective financial obligations under the agreed terms, the devaluation of a credit agreement due to the deterioration of the borrower’s risk classification, reduction of earnings or remuneration, the advantages granted in renegotiation and recovery costs.
B & T does not execute credit operations such as loans, financing or securities discounts, which is why it does not need to maintain a structure to control traditional credit risk and credit risk mitigators. Credit risk management is determined by calculating the portion of risk denominated RWAcpad (PEPR), which is the exposure of risk-weighted assets established by Brazil’s Central Bank and comprising the Operational Limits Document - DLO ( CADOC 4040).
B & T, in compliance with what was established by the National Monetary Council, through CMN Resolution 3,988, of June 30, 2011, as well as complementary rules of Brazil’s Central Bank, implemented its Capital Management Structure, compatible with the nature of transactions, complexity of the products and services offered and the size of its exposure to risks in the operations carried out by B&T, in order to control and design the Referential Equity (PR), as well as Required Referential Equity (PRE) in a setting of at least three years.
B & T’s Capital Management structure is intended to adopt a forward-looking approach, anticipating the need for capital. Strategic planning, annual budget and the company goals should be in line with the capital plan, and be semi-annually reviewed to minimize market fluctuations.
B & T annually prepares the company’s Strategic Planning with all its leaders to discuss ideas and strategies for the next 3 years. From this survey, the Financial Planning sector elaborates a matrix budget with the sector leaders contemplating all company revenues and expenses for the next year.
B & T’s Annual Budget, which is previously approved by the Executive Board, includes: capital projections, economic and financial projections, performance indicators of the company and of each sector, revenues and expenses’ budget, projections of DLO and Basel I Index. All these projections are made in three scenarios (Pessimistic, Realistic and Optimistic).
The aforementioned structure is intended to enable B & T to maintain adequate capital levels for its operation, regardless of the minimum capital required by regulatory agencies.
The Capital Management Structure is available to those responsible for its execution and their directors, internal and external auditors, as well as regulatory agencies when requested.