Check out the latest news about the new foreign exchange regulation and understand how access to international transfers has become simpler and faster.
The Monetary Council (CMN) and the Central Bank of Brazil (BCB) approved a series of measures to make international payments and international remittances easier.
According to the BCB, these measures are included in the #AgendaBC and are aligned with the G2O priorities to improve international payments regarding costs, time, transparency, and access. The initiatives are also linked to the concept of Open Banking that is being implemented in Brazil.
As an institution with over 30 years of specialization in foreign exchange services, with regulatory expertise and robust compliance processes, Bexs can see a wider range of opportunities to develop new solutions and increase integration between Brazil and the world. Check the main changes that are already in place and those that will enter into operation soon:
A payment account is a product that enables customers to make transfers and payments through applications, beit between the same institution or different institutions. These accounts which are generally free of charge are usually fintechs.
The new regulation enables payment accounts in Brazil and abroad to be directly linked to settlements of foreign exchange transactions, which is very inclusive. Previously, only current accounts registered in traditional banks in Brazil could settle foreign exchange transactions in Brazilian reais (sell and buy currency), and remmitance could only be made to accounts from commercial banks abroad. With this measure, we add, just in Brazil over 200 million digital accounts and hundreds of millions more digital accounts worldwide.
The regulation of international payment and transfer services in the foreign exchange market has been consolidated and modernized, and they will be referred to by the term eFX. The new standard clarified the eFX service providers’ role and obligations, bringing more security to new entrants to this market. By facilitating the payments methods that can be used to purchase goods and services abroad, the eFX service providers will enable Brazilian consumers to expand their access to foreign markets. Check below the differences in services provided that eFX institutions offer:
Being an institution already authorized to operate by the BCB, such as Bexs:
Payment of goods and services of any amount; unilateral transfer up to US$10,000 (resident’s maintenance, donations, etc.) and availability of up to US$ 10,000.
Being an institution not authorized by the BCB or any other legal entity (mainly fintechs/payment institutions):
Payments for goods and services up to US$10,000 acting as an intermediary. For other services should this operation require a foreign exchange a financial institution as Bexs will be needed to make the settlement.
Now the boleto will also be available to pay for international services and not just for goods purchases. This measure grants more access to international services, since more foreign companies, through this eFX service providers, will offer this payment method, which still has a relevant share in Brazil. The Beyond Borders survey showed that the boleto is still the preferred payment method for international transactions, followed by credit card. According to the BCB, approximately 350 million transactions were processed via boleto just in July 2021.
Digital services, such as streaming, SaaS, among others, will benefit from this innovation, as they will be able to reach more Brazilians, especially those unbanked.
Now it is also possible to open prepaid accounts in Brazilian currency (real) in Brazil by persons or entities residing/domiciled abroad.
Previously only deposit accounts were offered to persons or entities residing/domiciled abroad; With the new regulation, people or entities resident/domiciled abroad will be able to open prepaid accounts in payment and other institutions authorized by the BCB. However, the BCB has established some limits, such as, for example, the maximum amount of R$10,000 per transaction carried out locally.
Starting September 1st, 2022, Payment Institutions will be able to ask for an authorization from the BCB to operate foreign exchange. The limit expected for these institutions is of up to US$ 100,000 per transaction and they will not be allowed to buy and sell physical currency.
It should be noted that for these new entrants to the foreign exchange market it will be required to have a minimum operational structure to meet the BCB’s requirements, among these is a well-structured compliance area responsible to prevent money laundering, analyzing and monitoring the parties involved in the transactions, and also carrying out the transaction itself, as well as to be in accordance with the regulator’s requirements.
As a pioneer bank in the cross-border market and with our proven capacity to develop new international payment products, Bexs believes that the measures will further leverage cross-border e-commerce, which grew 76% in Brazil last year alone, and also other businesses involving transactions in different currencies.