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On July 4, 2024, the Central Bank of Brazil (BCB) and the National Monetary Council (NMC) announced new open finance rules that will enable Pix by approximation. These regulations aim to simplify the payment initiation process, broaden the scope of participating institutions and establish a definitive open finance governance structure.
The bigger picture
The BCB is driving financial innovation with the introduction of new open finance regulations. These rules, which include enabling Pix by approximation (in effect, providing contactless payments), aim to enhance the efficiency, transparency and competitiveness of the financial sector. The initiative aligns Brazil with global trends in open banking and financial technology, signalling a transformative shift in how financial services operate.
According to the BCB and the NMC, the new open finance rules are aimed at:
- Simplifying the payment initiation journey with Pix, including proximity payments.
- Broadening the scope of institutions required to participate in the open finance ecosystem.
- Establishing the definitive open finance governance structure.
How do things change?
The new regulations encompass several critical documents:
- Joint Resolution No. 10/2024: Amends Joint Resolution No. 1/2020, including changes to obliged entities, payment transaction procedures and guidelines for establishing the governance structure of open finance.
- BCB Resolution No. 398/2024: Amends BCB Resolution No. 32/2020, including governance structure requirements and monitoring manual requirements for obliged entities.
- BCB Resolution No. 399/2024: Amends Circular No. 4,015/2020, including changes to charges for exchange transactions and investment products.
- BCB Resolution No. 400/2024: Provides guidelines for establishing the governance structure of open finance by January 2, 2025.
- Normative Instruction No. 485/2024: Discloses the categorisation of institutions and net worth ranges for calculating contributions to the governance structure.
- Normative Instruction No. 486/2024: Discloses a database for identifying institutions subject to mandatory participation in open finance.
These new rules will significantly expand the range of institutions participating in the open finance ecosystem, including those involved in investment and foreign exchange operations.
Why should you care?
Embracing these changes offers strategic advantages, such as improved customer engagement and new business opportunities. The updates should support firms to refine their strategies and prepare for the evolving financial landscape. Understanding the new open finance regulations is critical for mitigating risks and ensuring compliance. Non-compliance can result in penalties and damage to an organisation's reputation.
