CVM Resolution 245/2026 and the BVI: what changes for those who invest in Brazil?

On July 2, 2026, the Brazilian Securities and Exchange Commission (CVM) issued Resolution CVM 245, amending Resolution CVM 50/2021, which deals with the Prevention of Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction (AML/CFT). The regulation will come into effect on July 15, 2026.

You may have already come across publications suggesting that the resolution "ends" the use of companies in jurisdictions like BVI to invest in Brazil. This conclusion, however, does not reflect what the regulation actually establishes.

CVM Resolution 245 does not prohibit offshore structures, does not prevent investments made by companies from the BVI (Brazilian Stock Exchange), and does not alter the rules for foreign investors' access to the Brazilian market.

In reality, the Resolution reinforces the anti-money laundering obligations that already apply to brokerage firms, asset managers, administrators, and other participants in the Brazilian capital market when they serve certain non-resident investors.

This information sheet explains, without causing alarm, what the regulation says and what its practical effect is.

What changes in practice?

CVM Resolution 245 inserts a new Article 17-A into CVM Resolution 50. In short, this provision mandates that transactions involving a Non-Resident Investor (NRI) originating from a jurisdiction listed in the FATF lists undergo enhanced due diligence measures. This adds two layers of control: compliance with Article 16 of Resolution 50 (already existing for cases without clear identification of the ultimate beneficial owner) and a minimum set of additional procedures specific to these jurisdictions.

The obligation falls on the Brazilian brokerage firm, asset manager, or custodian, not on the investor or the offshore company directly. And it is not limited to the investor based in the listed jurisdiction: it also extends to structures, control chains, and beneficial owners linked to it.

Resolution 245 does not revoke existing structures, does not create new tax or reporting obligations for the offshore company owner, and has no effect outside the capital market regulated by the CVM (Brazilian Securities and Exchange Commission). In other words, planning, asset holdings, and other purposes of the BVI company continue as normal. What changes specifically is the rigor with which the brokerage firm, asset manager, or custodian will request documentation when this structure is used to invest in assets in Brazil.

And do the BVI (Brazil's Virgin Islands) fall into this list?

Yes. The British Virgin Islands have been on the FATF grey list since June 2025 and remained there in the February and June 2026 reviews, so it is indeed among the jurisdictions that trigger enhanced due diligence under the new Art. 17-A.

It's important to contextualize that the gray list (jurisdictions "under intensified monitoring") is very different from the blacklist, which currently includes only Iran, North Korea, and Myanmar and requires much more severe countermeasures.

The inclusion of the BVI resulted from specific technical deficiencies identified in the 2024 mutual assessment (supervision of fiduciary and corporate service providers, availability of beneficial ownership information, quality of suspicious transaction reporting), and the territory has already been reporting consistent legislative progress within the action plan agreed with the FATF.

Practical impact for clients with structures in BVI (or other listed jurisdictions)

From July 15, 2026, non-resident investors originating from jurisdictions on the FATF list, which includes the BVI, who operate in the Brazilian capital market through local brokers, asset managers, or custodians can expect:

• Request for additional documentation regarding the ultimate beneficiary, chain of control, and origin of funds, in addition to what is already required by Article 16 of Resolution 50.

• Possible extension of the onboarding or registration update period with the Brazilian intermediary, as the latter adjusts its internal procedures to the new Article 17-A.

• There is no need for corporate restructuring arising solely from this rule. The appropriate response is documentary compliance, not corporate engineering.

We recommend that clients with structures in jurisdictions listed by the FATF anticipate the organization of beneficial ownership and chain of control documentation, in order to avoid operational friction with their Brazilian intermediaries from the entry into force of the rule.

Conclusion

CVM Resolution 245/2026 is a capital market compliance measure with a defined scope and stated purpose of aligning with international standards for combating money laundering, not a tax or corporate policy measure against offshore structures. Its real practical effect is the reinforcement of due diligence for non-resident investors in a specific group of jurisdictions, which currently includes the British Virgin Islands (BVI). This reinforcement translates into more documentation and more rigorous dealings with the Brazilian intermediary, never into an impediment to the use of the structure.

As with any regulatory change, the key is not alarmism, but rather technical suitability: understanding exactly what the regulation requires, from whom, and from when.