Update on Regulation of Branchless Banking in Brazil

This update of CGAP’s 2008 "Notes on Regulation of Branchless Banking in Brazil" incorporates research conducted by CGAP in January 2010. It is one of 11 country updates produced by CGAP as a part of the G20 Access through Innovation (ATI) Sub-Group’s workplan.

The paper states that all Central Bank of Brazil (CBB)-licensed institutions are permitted to offer various services such as deposits, withdrawals, and transfers through legal entities functioning as agents. Banks are required to register their agents online. Key points include:

• CBB is responsible for setting and enforcing anti-money laundering/combating the financing of terrorism rules applicable to CBB-supervised entities;
• Collecting, intermediating, or investing funds from third parties is reserved for CBB licensed, regulated, and supervised entities;
• All deposit-taking entities are subject to licensing and supervision;
• The Payment System Law gives CBB a clear mandate to supervise the National Payment System;
• There is no legal or regulatory provision that specifically addresses the provision of money transfer services;
• There is no specialized financial consumer protection body, but an active network of government entities enforces the Consumer Protection Code in the financial sector;
• The Civil Code provides for recognition of electronic signatures.