CMN and the Central Bank Strengthen Controls Over Accounts and Expand Monitoring Obligations
On November 3, 2025, the Central Bank of Brazil (“BCB”) issued Resolution No. 518, and the National Monetary Council (“CMN”) issued Resolution No. 5,261 (together, the “Resolutions”), enhancing the rules governing the closure of payment accounts and deposit accounts, respectively.
The amendments reinforce financial institutions’ responsibility for monitoring transactions and preventing fraud, expanding the circumstances that may justify the mandatory closure of such accounts.
Under the previous regulatory framework, institutions were already required to close payment or deposit accounts when any serious irregularities were identified in the information provided by the account holder.
In addition to maintaining this obligation, the Resolutions now also require the compulsory closure of accounts when the account holder is found to be providing financial or payment services without proper legal authorization or in breach of CMN or BCB regulations—thus characterizing the irregular provision of financial or payment services.
In this regard, the Resolutions provide a non-exhaustive indication of situations that constitute irregular financial or payment services, such as the use of funds held in accounts to make or receive payments, or to offset obligations on behalf of third parties—commonly referred to as “commingled accounts” or “pooled accounts”—in circumstances that may disguise or substitute financial obligations and hinder the identification of the actual beneficiaries.
Finally, the Resolutions reinforce that institutions must adopt their own criteria to identify such conduct and may rely on information obtained from public or private databases.
These criteria must be documented, approved by the institution’s board of directors, and kept available for inspection by the BCB for at least ten (10) years, together with all documentation related to account closures carried out under these provisions.
With these measures, which will enter into force on December 1, 2025, the BCB and CMN strengthen the regulatory framework aimed at preventing fraud and irregular practices involving payment and deposit accounts.
