Resolution 3110 (on norms governing bank agents)

Brazil

(enacted in 2003)

Resolution 3110 of 2003 (on norms governing bank agents), issued Central Bank of Brazil, governs the activities of banking correspondents. This resolution amends and consolidates the rules governing the use of agents by banks and other financial enterprises, and outlines the types of activities agents and sub-agents may engage in. The resolution was later amended by Resolution 3156 of 2003.

This resolution introduced the following innovations:

  • All types of financial institutions can now hire correspondents, including credit cooperatives and microcredit institutions;
  • Any type of commercial establishment or financial institution can be a correspondent;
  • Correspondents can now receive and forward credit card applications;
  • Correspondents engaging in items 1 and 2 above cannot have the agency business as its main activity;
  • Agency agreements between a financial institution and a correspondent can be subcontracted, with previous consent of the contracting financial institution;
  • Agency agreements must have some minimum clauses established in the Resolution; and
  • Commercial establishments are legally prohibited from acting as agents or providing financial services without having an agency relationship with a financial institution, according to the bank law (Law 4,595/1964, art. 44, § 7).