The BNA, in a statement, justifies the end of the mission of the exchange control department as a result of the implementation of the exchange rate regime defined by the market, which contributed to the "elimination of the need to license foreign exchange operations".
According to the note, the BNA began, at the end of 2017, a set of reforms in the foreign exchange market with the aim of implementing a flexible exchange rate regime, defined by the market based on the demand and supply of foreign currency.
The reforms also aim to eliminate administrative restrictions and make foreign exchange transactions more fluid.
The market exchange rate "promotes a more efficient allocation of foreign currency, making administrative controls associated with foreign exchange operations carried out by the central bank redundant", reads the statement.
"Thus, by implementing the exchange rate regime defined by the market, the BNA was eliminating the need for licensing exchange operations", justifies the central bank.
With the discontinuation of services from the exchange control department, the BNA proceeded to reinforce its inspection and monitoring areas, with the aim of ensuring that commercial banks have implemented adequate controls, processes and procedures to "ensure the legitimacy of all banking operations performed, including foreign exchange operations".
This internal reorganization, argues the BNA, makes it possible to improve the effectiveness of its preventive supervision of money laundering and terrorist financing in the banking sector, covering operations in national and foreign currency, and thus reinforce the sustainability of the sector.
The implemented reforms also served to "enhance the possibility of commercial banks in validating the legitimacy of all exchange operations processed at the request of their customers, already defined in the legislation and regulations on the prevention of money laundering".
Financial system operators now interact with the BNA's statistics department, "for the purpose of reporting statistical data related to foreign exchange matters", and with the financial conduct department, "to clarify doubts or any transactions in which central bank intervention is required.
