Brazil at a Glance
Brazil at a Glance
A Long Standing Presence in Brazil and Comprehensive Treasury Solutions
Brazil’s Cash Management Operating Environment
Bank Accounts Clearing Systems
Brazil is a focal point for J.P. Morgan within the Latin American region. The bank provides a suite of local cash management products through Banco J.P. Morgan S.A.
(J.P. Morgan Brazil) to facilitate our clients’ needs in doing business in Brazil.
Accounts are available in Brazil in the local currency, the Real (BRL, R$), and are non- CIP-SITRAF (Net Settlement) interest bearing. Non-resident accounts are strictly controlled and monitored by the Central
Bank of Brazil. Zero Balance Accounts are than R$5,000 widely used as a concentration technique, but only among accounts owned by the same legal entity. Brazilian R$ may be converted into another foreign currency through an FX transaction with an authorized bank. Foreign currency held abroad by Brazilians (companies and individuals) is reported to the Central Bank of Brazil.
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STR (Real-time Gross Settlement System) and Payment method: TEDs (same-day wires), electronic clearing for transactions greater L O C A T I O N
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CIP-SILOC/SIPROC (T+1 settlement)
Payment methods: DOCs (wire transfers up to
R$4,999.99) and boletos*
BRL – R$
COMPE
Checks are processed and cleared electronically through this national clearing house.
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SWIFT
Intraday Account Balance Structure and Statements
The SWIFT clearing system is not commonly used in the Brazilian market. SWIFT is mainly used to route cross-border payments that are settled through accounts held with correspondent banks abroad. All cross-border payments require the execution of a FX
Agreement with a local bank authorized to operate in the FX market by the Central Bank of Brazil.
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Accounts provide varying balances throughout the day, reflecting the different timing of transaction settlements.
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Electronic statements are available in the local file format standard: CNAB.
São Paulo
São Paulo Location:
Av. Brigadeiro Faria Lima 3729
São Paulo, Brazil
H I S T O R Y O F J . P . M O R G A N
1895 J.P. Morgan participates 1952 Chase National Bank establishes its first direct 1988 J.P. Morgan establishes São
2000 Chase Manhattan Bank and J.P.
J.P. Morgan’s relationship with
Brazil spans 114 years. in loan to Brazil presence in Brazil via a joint venture, government Interamericana de Financiamentos e
Investimentos S.A.
Paulo branch Morgan merge
Milestones include:
*Boleto – This bar-coded electronic invoice, widely used in Brazil, is a collection instrument with instructions issued and distributed via the post-office by banks on behalf of customers to drawees. It may be paid electronically or at any bank up until the due date.
The content is a summary for your general information only and is subject to change without notice. J.P. Morgan makes no representation or advice as to the legal, regulatory or tax implications of the matters referred to herein. Confidential and proprietary to J.P. Morgan. ©2009 JPMorgan Chase Co. All Rights Reserved. J.P. Morgan is a marketing name for the treasury services businesses of JPMorgan Chase
Bank, N.A. and its subsidiaries worldwide, including an indirect subsidiary in Brazil – Banco J.P. Morgan S.A. The products and services featured above are offered by JPMorgan Chase Vastera do Brasil
Serviços de Comércio Exterior Ltda., a wholly owned indirect subsidiary of JPMorgan Chase Co. Eligibility for particular products and services is subject to final determination by J.P. Morgan and or its affiliates/subsidiaries. Produced by TS Global Marketing. Brazil Cash Management Services in Brazilian Reais
Account Services Dollars
PURPOSE AND TYPE OF ACCOUNT BALANCE STRUCTURE GOVERNMENT REQUIREMENTS
ZERO BALANCE ACCOUNT MANAGEMENT
Demand Deposit Accounts in Brazilian Reais for incoming and outgoing transactions same-entity accounts non-interest bearing
Balances differentiate same-day and next-day settlement transactions based on payment type
Automatic transfer of end-of-day balances among Accounts may be opened in local currency and are J.P. Morgan in Brazil: Domestic Cash Management Capabilities
ELECTRONIC BANKING
LOCAL PAYMENTS AND INCOMING CREDITS
LIQUIDITY MANAGEMENT
J.P. Morgan Brasil Online, our Web-based electronic banking platform, is in Portuguese and customized to meet local market practices, regulations and needs. This electronic cash management tool provides payment initiation, authorization, reporting and file management capabilities. Secure access is provided through e-CPF authentication (local electronic Tax ID). Local host-to-host connection is also available through VANs.
Execute local transactions by using J.P. Morgan
Brasil Online or file exchange through VANs.
While market practice is to debit payment transactions (regardless of the payment method) on transfer of reserve balances among accounts under the same day they are initiated, J.P. Morgan Brazil debits payments to clients’ accounts on the transaction settlement date, providing a competitive advantage.
J.P. Morgan Brazil offers end-of-day automatic the same legal entity. The client determines the main and sub accounts for the sweeps.
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TEDs (Transferência Eletrônica Disponível) –
Same-day settlement of transactions over
R$5,000; credits received are credited immediately upon receipt
ESCROW SERVICES
J.P. Morgan Brazil holds assets in escrow and disburses them when a commitment is delivered upon, helping clients mitigate risk in critical transactions. Escrow deposits are available in
Brazilian Reais.
Multiple Payment Setup (Convênios)
DOCs (Documentos de Crédito) – Next-day settlement; local mass payment wires of up to
R$4,999.99
This feature offers increased control over payments by segregating multiple payment types within one account.
INVESTOR SERVICES
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Boleto Payments – Next-day settlement (any amount)
American Depositary Receipt (ADR) Services
Debit Consolidation
FOREIGN EXCHANGE
As the depositary of choice, we provide strategic advice, equity sales assistance and investment banking services for companies that want to broaden and diversify their US investor base.
Bank Check Payments – Next-day settlement; available next day at J.P. Morgan Brazil
Clients have the option to consolidate payment debits on the account statement by payment types.
This feature can also be used in conjunction with
Multiple Payment Setup.
Both Export FX Spot and Import FX Spot transactions are available, settled in Delivery Versus Payment
(DVP) method.
Trade Services
FX Contract Anticipation (ACC/ACE)
J.P. Morgan
Treasury
Global Trade
Services
J.P. Morgan offers local documentation review and management to help clients in the execution of Global Trade products (e.g., Letters of Credit). The bank ensures that required documentation is correct and manages any pending documents, improving process efficiency
ACC/ACE are financing alternatives used by Brazilian exporters. J.P. Morgan will anticipate the future receivable of the exported goods or services in Brazilian currency. The exporter will then instruct the importer to pay J.P. Morgan Brazil directly for the goods or services.
ACC transactions are closed before shipment of the exported goods, whereas ACE transactions are closed after the shipment. (Subject to credit approval.)
Logistics
Trade Management Services in Brazil include:
Local Guarantee (Fiança)
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Trade Management Consulting – expert advice in global supply chain management
Software – manage the entire shipment process from purchase order to delivery
A Local Guarantee “Fiança” represents a contract in which J.P. Morgan Brazil guarantees, at the request of its customer, an obligation to a beneficiary. Fiança will always be issued in
Brazilian currency. (Subject to credit approval.)
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Managed Services – global trade outsourced solutions help clients manage and optimize the import and export of goods and the associated financial and information flows
Import Financing (Finimp)
Finimp is a loan in foreign currency provided to the client to finance the acquisition of goods and services abroad. J.P. Morgan pays the exporter at sight in foreign currency and receives the payment from the importer at the maturity date. (Subject to credit approval.)
The content is a summary for your general information only and is subject to change without notice. J.P. Morgan makes no representation or advice as to the legal, regulatory or tax implications of the matters referred to herein. Confidential and proprietary to J.P. Morgan. ©2009 JPMorgan Chase Co. All Rights Reserved. J.P. Morgan is a marketing name for the treasury services businesses of JPMorgan Chase
Bank, N.A. and its subsidiaries worldwide, including an indirect subsidiary in Brazil – Banco J.P. Morgan S.A. The products and services featured above are offered by JPMorgan Chase Vastera do Brasil
Serviços de Comércio Exterior Ltda., a wholly owned indirect subsidiary of JPMorgan Chase Co. Eligibility for particular products and services is subject to final determination by J.P. Morgan and or its affiliates/subsidiaries. Produced by TS Global Marketing.