The National Monetary Council (CMN) established new regulatory provisions on the internal controls of financial institutions, applicable to specific financial institutions authorized by the Central Bank of Brazil (BCB).
Resolution n.º 4.968/2021 from the National Monetary Council (CMN) established new regulatory provisions on the internal controls of financial institutions, which apply to the financial institutions authorized by the Central Bank of Brazil (BCB), except those described in the first article. It will replace CMN Resolution n.º 2.554/1998 on January 1st, 2022.
The new resolution provided additional general requirements on the adoption of internal controls by financial institutions, which must be compatible with each institution’s business model, risk appetite, nature, structure, complexity of operations, and company size (article 2).
The resolution listed the general requirements of an internal control framework (articles 4 and 5), determined the elaboration of an annual internal control report (article 6), and defined the general responsibilities (separate and joint) of the board of directors and the board of administration regarding internal control (articles 7 to 10).
