meta_id 3291443

On July 1, 2026, the Brazil Securities and Exchange Commission (CVM) published CVM Resolution No. 245, modifying the existing regulatory framework governing investment fund management in Brazil. The amendment updates requirements previously established under Resolution No. 50, which sets out foundational rules designed to prevent money laundering. Under Resolution No. 245, natural or legal persons that provide services related to the distribution, custody, intermediation, or management of portfolios in the securities market must adopt continuous and enhanced monitoring, through the adoption of more rigorous procedures for selecting atypical operations or situations, regardless of the investor's risk classification. Further, the obliged entities must, within the limits of their powers, adopt enhanced due diligence measures in the case of transactions or situations involving non-resident investors who reside, have their headquarters or are incorporated in countries, jurisdictions, dependencies or locations that do not apply or apply insufficiently the recommendations of the FATF, as per lists issued by that organization. Enhanced due diligence measures must at least include: additional restrictions or conditions for establishing business relationships; limitation, postponement or refusal to carry out transactions with assets classified as higher risk; requirement for additional information or proof; and termination of the business relationship when risks deemed unacceptable and unmitigable are identified. The resolution enters into force on July 15, 2026. Market participants, including investment fund managers, administrators, and custodians operating in Brazil's securities markets, should review the amended provisions to ensure compliance with the updated requirements.