Since 1 September 2022, the process of obtaining authorization to operate as a financial institution before the Central Bank has been simplified with the publication of CMN Resolution 4,970/2021 and Normative Instruction 299/2021.

In order to obtain authorization to operate as a financial institution in Brazil, the applicant must submit the following documents and information to the Central Bank:

• Completed application form, in accordance with the model provided by the Central Bank
• Declaration, signed by the controlling shareholders, that they meet the requirement of economic and financial capacity compatible with the capital needed to structure and operate the institution, as well as the contingencies arising from market dynamics
• Information and documentation proving compliance with the economic and financial capacity requirement relating to the controlling shareholder
• Statement of the lawful origin of the funds used by the controlling shareholders and holders of qualifying holdings to pay up the equity capital
• Detailed business plan
• Declaration, signed by the controlling shareholders and by the holders of qualified holdings, who are natural persons, that they meet the requirement of an unblemished reputation and the conditions established by the legislation and regulations in force
• Declaration signed by the controlling shareholders and holders of qualifying holdings, other than natural persons, that they meet the conditions established by the legislation and regulations in force
• Authorization, signed by the controlling shareholders and holders of qualifying holdings: (a) to the Brazilian Internal Revenue Service to provide the Central Bank with the Individual Income Tax Return or the Corporate Economic and Tax Information Return, as the case may be, relating to the last three financial years, except in the case of a legal entity based abroad or an investment fund, for the exclusive use of the Central Bank in the respective authorization process; (b) to the Central Bank for access to information about them in any public or private registration and information system, including judicial or administrative processes and procedures and police investigations; and (c) to the Central Bank to carry out the processing and shared use of personal data held by them, including those considered sensitive and covered by secrecy, under the terms of the legislation in force
• Declaration, signed by those elected or appointed to positions in bodies provided for in the bylaws or articles of association, that they meet the requirements of an unblemished reputation and, in the case of directors and officers, technical training compatible with the duties to be performed during their term of office, as well as the conditions established by the legislation and regulations in force
• Authorization, signed by those elected or appointed to positions in bodies provided for in the bylaws or articles of association, to the Central Bank to: (a) access information about them, in any public or private registration and information system, including judicial or administrative processes and procedures and police investigations; and (b) carry out the processing and shared use of personal data held by them, including those considered sensitive and covered by secrecy, under the terms of the legislation in force
• Declaration, signed by the entity, of: (a) being aware of the legal and regulatory requirements and conditions to which those elected or appointed to positions in bodies provided for in the bylaws or articles of association are subject for the exercise of their positions, as well as the hypotheses of ineligibility; (b) having carried out research regarding those elected or appointed to positions in bodies provided for in the bylaws or articles of association, in public and private registration and information systems, and that they meet the legal and regulatory requirements and conditions necessary for the exercise of their positions; (c) having verified that the directors and officers elected or appointed have the technical training compatible with the duties to be carried out during their term of office; (d) having been authorized, by those elected or appointed to positions in bodies provided for in the bylaws or articles of association, to have access to any information, protected by legal secrecy or not, or documents related to the analysis by the Central Bank of their names for the exercise of the positions and for the duration of their mandates; and (e) having been authorized, by those elected or appointed to positions in bodies provided for in the bylaws or articles of association, to be aware of the processing of the respective authorization, monitoring or supervision processes and to obtain copies of documents contained therein, including those containing data of their ownership protected by any kind of secrecy, even those considered sensitive, under the terms of the legislation in force
• Most recent version of the bylaws or articles of association
• Shareholders' or quota holders' agreement or a declaration of its non-existence
• Usufruct agreement relating to the controlling shareholders' holdings or a declaration of its non-existence
• Declaration that the management meets the requirement to know the business, the segment in which the institution intends to operate, the market dynamics, the sources of operating resources, the management of activities and the risks associated with them

The Central Bank may carry out a pre-operational inspection of the institution in order to assess the compatibility between the organizational structure implemented by such institution and the requirements for granting operating authorization to it. If any incompatibility is found, the Central Bank will set a deadline for correction, after which, in the event of non-compliance, it will reject the authorization request.

The Central Bank, before or after issuing operating authorizations, may: (i) request any additional documents and information it deems necessary, as well as request them from other public administration bodies and authorities abroad; and (ii) summon the controlling shareholders, holders of qualifying holdings, and directors and officers of the institution for interviews.

The application procedure is the same for the controllers of financial institutions that are Brazilian residents or foreign investors. The assumption by a foreign financial institution of the status of controlling shareholder of a financial institution based in Brazil is subject to the non-objection of the regulatory body of the country of origin.