Brazil’s Central Bank implements resolution on data sharing

by | Jul 3, 2023 | Blog, Digital, Technology

On 23 May, Brazil’s central bank (BACEN) published a Joint Resolution that provides for the requirements that must be observed by institutions in the sharing of data and information on indications of fraud.

The Resolution determines that financial institutions, payment institutions and others authorized to operate by the Central Bank of Brazil must share, through an electronic system, any data and information to support its fraud prevention procedures and controls and indicates the functionalities that must be guaranteed by the systems, as well as the minimum information that should be shared.

It also stipulates that institutions must obtain the prior and general consent of the customer to enable the recording of such data and information. This is to be done by means of a clause highlighted in the body of the signed contract or through another valid legal instrument, also reinforcing that the duty of secrecy, the protection of personal data and free competition must be observed, as well referring to other principles listed.

Finally, the resolution imposes on the institutions the duty to establish monitoring and control mechanisms to ensure compliance with the Joint Resolution itself, which will enter into force on 1 November 2023.

If you would like to know more about how these topics could affect your business in Brazil, please get in touch with our technology experts at: [email protected]

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