> 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/8.-foreign-exchange-law.md).

# 8. Foreign Exchange Law

Transactions in the foreign exchange market may be carried out <mark style="background-color:purple;">only through institutions authorized by the Central Bank of Brazil to operate</mark>.

However, the law does not apply to purchase or sale transactions involving foreign currency in cash, <mark style="background-color:purple;">up to US$500.00 (five hundred dollars) or its equivalent in other currencies</mark>, carried out in the country, on an occasional and non-professional basis, <mark style="background-color:purple;">between individuals</mark>.

## Definitions:

* Brazilian capital abroad: the amounts, assets, rights, and assets of any nature held outside the national territory by residents;
* Foreign capital in the country: the amounts, assets, rights, and assets of any nature held in the national territory by non-residents.

## Obligations:

* identify and qualify their customers (KYC);
* ensure the lawful processing of foreign exchange market transactions (AML/CFT).

{% hint style="danger" %}
The entry into and exit from the country of national and foreign currency must be carried out exclusively through an institution authorized to operate in the foreign exchange market, which will be responsible for identifying the customer and the recipient or sender.
{% endhint %}

## Penalties:

* the forfeiture of the amount exceeding the limits in favor of the National Treasury, in addition to the criminal sanctions provided for in the specific legislation.