Definitely formaldehyde. Apparently has even caused hair loss. Does look great though.
http://www.hc-sc.gc.ca/ahc-asc/media/advisories-avis/_2011/2011_56-eng.php
http://www.theglobeandmail.com/life/the-hot-button/health-canada-issues-yet-another-warning-over-brazilian-blowouts/article1982771/...