Regulatory News

The Central Bank of Brazil is preparing a package of measures to strengthen the country's financial regulation. One of the measures is the increase of fines for financial institutions in cases of fraud and irregularities with accounts. The maximum amount of the penalty should increase almost 80,000%, from the current R$250,000 (US$81,000) to up to R$2 billion ($646 million).

The evaluation made by the bank's board is that the current fine is very low compared to figures from major financial institutions. The increase in fines is part of a larger plan, which has the objective of promoting in this semester a broad revision of legislation in the sector, which is more than 50 years old.

© 2007 CRE Brazil - All Rights Reserved.