Brazil and its definition of PEP

Brazil, like other countries in the Americas such as Mexico, Ecuador, or Chile, also establishes its own concept of politically exposed persons. The existence of this concept in various countries around the world is influenced by the Recommendations from the FATF in the development of anti-money laundering regulations.

The key regulatory framework regarding politically exposed persons in Brazil is:

1. Law 9613 of March 3, 1998,
2. Resolution Coaf No. 40, of November 22, 2021.

The first regulation establishes the key pillars for preventing money laundering, outlining the duties that obligated entities operating in that country must comply with. Furthermore, this regulation creates the Financial Activities Control Council — COAF — which will assume the role of the Financial Intelligence Unit.

Among the powers granted to COAF, this body has the authority to issue resolutions regulating aspects related to the prevention of money laundering. This is how the resolution of November 22, 2021, was established. It lists positions that will be considered as politically exposed persons.

List of PEPs in Brazil

The aforementioned resolution ut supra indicates that the following are Brazilian PEPs:

1. holders of elective mandates in the Executive and Legislative Powers of the Union;
2. holders of positions in the Executive Power of the Union, including:
   • Minister of State or equivalent,
   • special nature or equivalent,
   • President, Vice President, and Director, or equivalent, of entities of the indirect public administration; and
   • Senior Management and Advisory — DAS level 6 or equivalent
3. members of the National Justice Council, the Supreme Federal Court, the Superior Courts, the Federal Regional Courts, the Regional Labor Courts, the Regional Electoral Courts, the Superior Labor Court, and the Federal Justice Council;
4. members of the National Public Ministry Council, the Attorney General of the Republic, the Deputy Attorney General of the Republic, the Attorney General of Labor, the Attorney General of Military Justice, the Deputy Attorneys General of the Republic, and the State and Federal District Attorneys General;
5. members of the Federal Court of Accounts, the Attorney General, and the Deputy Attorneys General of the Public Ministry before the Federal Court of Accounts;
6. Presidents and National Treasurers, or equivalents, of political parties;
7. Governors and Secretaries of States and the Federal District, State Deputies and Federal District Deputies, Presidents or equivalents of the entities of the indirect public administration of States and the Federal District, and Presidents of the Courts of Justice of States and the Federal District, Military Courts, Courts of Accounts, or equivalents;
8. Mayors, Councilors, Municipal Secretaries, Presidents or equivalents of entities of the municipal indirect public administration, and Presidents of Municipal Courts of Accounts or equivalents.
9. Executives in senior positions at public international law entities.

The resolution also narrows the definition of foreign PEPs, indicating that those who are considered politically exposed persons abroad include:

1. Heads of State or Government,
2. high political officials,
3. senior government officials,
4. general officers and high-ranking judicial officials, 
5. senior executives of public companies,
6. leaders of political parties.

To identify national PEPs, COAF requires the use of the public database held by the Brazilian government. Brazil compiles its PEPs in a single source, facilitating the work of obligated entities.