> For the complete documentation index, see [llms.txt](https://www.opensourcelaw.com.br/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.opensourcelaw.com.br/en/legislation/14.-white-collar-crime-law.md).

# 14. White-Collar Crime Law

The [Law No. 7,492/1986](https://www.planalto.gov.br/ccivil_03/leis/l7492.htm) defines crimes against the National Financial System and provides other measures.

## Definitions:

* **Financial Institution**: (i) the public- or private-law legal entity whose main or ancillary activity, cumulatively or not, is the raising, intermediation, or application of third-party financial resources, in national or foreign currency, or the custody, issuance, distribution, trading, intermediation, or administration of securities; (ii) the legal entity that raises or administers insurance, foreign exchange, consortiums, capitalization, or any type of savings, or third-party resources; (iii) <mark style="background-color:purple;">the legal entity that offers services related to virtual asset transactions</mark>, including intermediation, trading, or custody; (iv) <mark style="background-color:purple;">the natural person who carries out any of the activities referred to in this article, even if on an occasional basis</mark>.

## Subjects:

The following are criminally liable:

* the controller of a financial institution;
* the administrators of a financial institution (directors and managers);
* the receiver, liquidator, or trustee.

## Crimes:

Below are the crimes most relevant to the cryptoasset market.

<details>

<summary>Issue, offer, or trade, in any way, securities or financial instruments:</summary>

I - false or forged;

II - without prior registration of issuance with the competent authority, under conditions differing from those contained in the registration, or improperly registered;

III - without sufficient backing or guarantee, under the terms of the law;

IV - without prior authorization from the competent authority, when legally required.

Penalty - Imprisonment from 2 (two) to 8 (eight) years, and a fine.

</details>

<details>

<summary>Carry out an unauthorized foreign exchange transaction with the purpose of promoting the outflow of foreign currency from the country:</summary>

Penalty - Imprisonment from 2 (two) to 6 (six) years, and a fine.

</details>

<details>

<summary>Fraudulently manage a financial institution:</summary>

Penalty - Imprisonment from 3 (three) to 12 (twelve) years, and a fine.

</details>

<details>

<summary>Operate a financial institution, including the distribution of securities or foreign exchange, without proper authorization, or with authorization obtained through a false statement:</summary>

Penalty - Imprisonment from 1 (one) to 4 (four) years, and a fine.

</details>

<details>

<summary>Mislead or keep in error a partner, investor, or competent public agency, regarding a transaction or financial situation, by withholding information or providing false information:</summary>

Penalty - Imprisonment from 2 (two) to 6 (six) years, and a fine.

</details>

<details>

<summary>Print, reproduce, or otherwise manufacture or put into circulation, without written authorization from the issuing company, a certificate, warrant, or other document representing a security or financial instrument: </summary>

Penalty - Imprisonment from 2 (two) to 8 (eight) years, and a fine.&#x20;

The same penalty applies to anyone who prints, manufactures, publishes, distributes, or causes to be distributed a prospectus or advertising material relating to the securities referred to in this article.

</details>

<details>

<summary>Embezzle money, securities, valuables, or any other movable property in their possession, or divert it for their own benefit or that of another:</summary>

Penalty - Imprisonment from 2 (two) to 6 (six) years, and a fine.

The same penalty applies to anyone who deals with a right, security, or any other movable or immovable property in their possession, without authorization from the rightful party.

</details>

{% hint style="warning" %}
In the crimes provided for in this Law, committed in a gang or by co-perpetration, the co-perpetrator or participant who, through spontaneous confession, reveals the entire criminal scheme to the police or judicial authority shall have their sentence reduced by one to two-thirds.
{% endhint %}