Law for the Transparency and Regulation of Financial Services

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LAW FOR THE TRANSPARENCY AND REGULATION
OF FINANCIAL SERVICES
Published in the Official Gazette of the
Federación on June 15, 2007, updated with reforms published in the same Gazette on June 25, 2009; May 25, 2010; January 10, 2014, March 9, 2018 and January 24, 2024.

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LAW FOR THE TRANSPARENCY AND REGULATION
OF FINANCIAL SERVICES
INDEX
Chapter I
General Provisions
Chapter II
On Commissions and Interchange Fees
Chapter III
On Transparency regarding Disposal Means and in the granting of credits, loans and financing (2) Chapter III Bis (2) On revolving credits, loans or financing associated with a card
Chapter IV
Common Provisions
Chapter V
On the administrative sanctioning procedure
Section I
On general provisions
Section II
On the initiation of the procedure
Section III
On the instruction of the procedure
Section IV
On the resolution of the procedure
Section V
(1) Sanctions to be imposed by the National Commission for the Protection and Defense of Users of Financial Services
Section VI
Sanctions to be imposed by the Federal Consumer Protection Agency (3) Section VII (Repealed)
Section VIII
Sanctions to be imposed by the Bank of Mexico
Chapter VI
On the review appeal
Chapter VII
On the enforcement of fines
Transitory Articles
Statement of Reasons
References

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At the margin, a seal with the National Coat of Arms, which says: United Mexican States.-Presidency of the Republic.
FELIPE DE JESÚS CALDERÓN HINOJOSA, President of the United Mexican States, to its inhabitants know:
That the Honorable Congress of the Union has seen fit to address to me the following DECREE "THE GENERAL CONGRESS OF THE UNITED MEXICAN STATES, D E C R E E S:
THE LAW FOR THE TRANSPARENCY AND REGULATION OF FINANCIAL SERVICES PUBLISHED IN THE OFFICIAL GAZETTE OF THE FEDERATION ON JANUARY 26, 2004 IS ABROGATED, THE LAW FOR THE TRANSPARENCY AND REGULATION OF FINANCIAL SERVICES IS ENACTED, AND VARIOUS PROVISIONS OF THE LAW OF CREDIT INSTITUTIONS AND OF THE LAW FOR THE PROTECTION AND DEFENSE OF THE USER OF FINANCIAL SERVICES AND THE LAW OF THE NATIONAL BANKING AND SECURITIES COMMISSION ARE REFORMED, ADDED TO AND REPEALED.
ARTICLE ONE. The following is enacted:

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LAW FOR THE TRANSPARENCY AND REGULATION OF FINANCIAL SERVICES
Chapter I
General Provisions
Article 1.- This Law is of federal order and its provisions are of public order and social interest. Its purpose is to regulate Commissions and Interchange Fees as well as other aspects
related to financial services and the granting of credits of any nature that Entities carry out, with the aim of guaranteeing transparency, the efficiency of the payment system and protecting the interests of the public.
Article 2.- The following regulations shall apply supplementarily to this Law, depending on the type of Entity involved:
I. The Law of Credit Institutions;
II. The Law of Popular Savings and Credit;
III. The General Law of Organizations and Auxiliary Credit Activities;
(9) III Bis. The Law to Regulate Financial Technology Institutions;
IV. The Law of the Bank of Mexico;
V. Law for the Protection and Defense of the User of Financial Services;
VI. The Federal Law for the Protection of the Consumer;
VII. The Commercial Code;
VIII. The Federal Civil Code, and
IX. Banking and commercial usages and practices (sic).
(6) Article 2 Bis.- The supervision and monitoring of compliance with the provisions of this Law and the provisions emanating from it shall correspond to the National Banking and Securities Commission, the National Commission for the Protection and Defense of Users of Financial Services and the Bank of Mexico with respect to Financial Entities, within the scope of their respective competencies; to the National Banking and Securities Commission with respect to Participants in Networks; to the Bank of Mexico with respect to Clearing Houses, in terms of the Law of the Bank of Mexico, and to the Federal Consumer Protection Agency with respect to other Commercial Entities.
Article 3.- For the purposes of this Law, singular or plural, the following shall be understood by:
(6) I. Authorities: the National Banking and Securities Commission, the Bank of Mexico, the National Commission for the Protection and Defense of Users of Financial Services and the Federal Consumer Protection Agency; (4) II. Clearing House: the central entity or centralized processing mechanism, through which payment instructions or other financial obligations, related to any Disposal Means, are exchanged; (6) III. Client: the person who enters into any passive, active or service operation with a Financial Entity, receives any credit, loan or financing from a Commercial Entity or uses the Disposal Means made available to them by any Entity; (1) IV. Commission: any charge, regardless of its denomination or different modality from Interest, that an Entity charges a Client. With respect to Financial Entities, charges incurred for passive, active or service operations shall be considered, and with respect to Commercial Entities, charges incurred for credit, loan or financing operations shall be considered. In all cases, charges for the use or acceptance of Disposal Means shall be considered; (9) IV Bis. Consortium: the set of legal entities linked to each other by one or more natural persons that, forming a Group of Persons, have Control over the former; (1) V. Adhesion Contract: the document prepared unilaterally by Entities to establish in uniform formats the terms and conditions applicable to the celebration of operations carried out with their Clients. With respect to Financial Entities, passive, active or service operations shall be considered, and with respect to Commercial Entities, credit, loan or financing operations shall be considered; (8) V Bis. Control: the capacity to impose, directly or indirectly, decisions in the general shareholders' meetings of the society; to maintain the ownership of rights that allow, directly or indirectly, to exercise voting rights with respect to more than fifty percent of the share capital of the society, and to direct, directly or indirectly, the administration, strategy or main policies of the society, either through the ownership of securities or by any other legal act; (9) V Ter. Consumer Credit: the following operations carried out by Entities: direct credits, denominated in national, foreign currency or UDIs, as well as the interest they generate, granted to natural persons, derived from revolving credit, loan or financing operations associated with a card, personal credits whose amount does not exceed the equivalent of three million investment units, credits for the acquisition of durable consumer goods and financial leasing operations that are celebrated with natural persons;
VI. CAT: the total annual cost of financing expressed in annual percentage terms, which, for informational and comparison purposes, incorporates all costs and expenses inherent to the credits, loans or financings granted by Entities;
(6) VII. Interchange Fees: the amounts that Entities charge or pay to each other, directly or indirectly, for any concept related to Disposal Means Networks, including, without limitation, the one charged by the Entity that makes the Disposal Means available to the Client and by the Entity whose infrastructure is used in the operation carried out through said Disposal Means, and which are regulated in accordance with Article 4 Bis 3 of this Law; (1) VIII. Entities: Financial Entities and Commercial Entities (8) IX. Financial Entity: credit institutions, regulated and unregulated multiple-object financial societies, popular financial societies, community financial societies, savings and loan cooperative societies, financial entities that act as trustees in trusts that grant credit, loan or financing to the public, credit unions and financial technology institutions; (6) X. Commercial Entity: societies that habitually grant credits, loans or financing to the public; (6) XI. GAT: Net Total Annual Gain expressed in annual percentage terms, which, for informational and comparison purposes, incorporates the interest generated by passive savings, investment and other analogous operations, that credit institutions, popular savings and credit entities and credit unions enter into with their Clients, minus all costs related to the operation, including opening costs, it shall be expressed both in real and nominal terms, in accordance with the provisions issued by the Bank of Mexico for its calculation; (9) XI Bis. Group of Persons: persons who have agreements, of any nature, to make decisions in the same sense. It is presumed, unless proven otherwise, that they constitute a Group of Persons:
(9) a) Persons who have kinship by blood, affinity or civil up to the fourth degree, spouses, concubine and concubine, and (9) b) Persons who are part of the same Consortium or Business Group and persons or set of persons who have Control of said societies.
(9) XI Ter. Business Group: the set of legal entities organized under schemes of direct or indirect participation of share capital, in which the same society maintains Control of said legal entities, including financial groups constituted in accordance with the Law to Regulate Financial Groups; (8) XII. Disposal Means: debit cards associated with demand money deposits; credit cards issued under a credit opening contract; checks; fund transfer orders, including the service known as direct debit; any device, card, or interface that allows the making of payments, transfers of funds or withdrawal of cash whose operations are processed through Disposal Means Networks, as well as those others that the National Banking and Securities Commission and the Bank of Mexico, jointly, recognize as such through general provisions. (6) For the purposes of this article, any person who issues or places Disposal Means shall be subject to the provisions of articles 2 and 103 of the Law of Credit Institutions and other applicable legislation; (9) The following shall not be included in this definition: those means issued under loyalty or reward programs offered by legal entities to their clients, which can only be accepted by said legal entities or by societies affiliated with said programs in exchange for goods, services or benefits, provided that they cannot be converted into legal tender in national territory or in any other jurisdiction and that the legal entities offering them have a list of societies affiliated with said programs that, collectively, cannot exceed twenty percent of the total of commercial establishments authorized to receive them, as well as amounts for prepayment, which can only be accepted by the issuer or any of the societies belonging to the same Consortium or Business Group of the issuer, in exchange for goods, services or benefits, provided that they cannot be converted into legal tender in national territory or in any other jurisdiction; (7) XII Bis. Participant in Networks: any person who habitually provides services related to Disposal Means Networks in accordance with the general provisions issued for this purpose by the National Banking and Securities Commission and the Bank of Mexico; (8) XIII. Disposal Means Networks: the series of agreements, protocols, instruments, interfaces, procedures, rules, programs, systems, infrastructure and other elements related to the use of Disposal Means, and which, in accordance with Article 4 Bis 3, correspond to be regulated jointly by the National Banking and Securities Commission and the Bank of Mexico, and (8) XIV. Payment System: the series of instruments, procedures, rules and systems for the transfer of funds.
Chapter II
On Commissions and Interchange Fees
(6) Article 4.- For the purposes provided in article 1 of this Law, the Bank of Mexico shall issue general provisions to regulate interest rates, active and passive, Commissions and advance payments and advances of the operations they carry out with their Clients, credit institutions and regulated multiple-object financial societies, except for what is provided in Article 4 Bis 3 which shall correspond to be regulated jointly by the National Banking and Securities Commission and the Bank of Mexico. (6) In exercising the powers conferred by this article, the Bank of Mexico shall regulate Commissions and interest rates, as well as any other concept of charge for operations carried out by Financial Entities with Clients. For the exercise of such powers, the Bank of Mexico may For internal use For internal use request the opinion of the National Banking and Securities Commission, the National Commission for the Protection and Defense of Users of Financial Services or the Federal Economic Competition Commission. (6) The National Commission for the Protection and Defense of Users of Financial Services, the National Banking and Securities Commission, the Ministry of Finance and Public Credit and the Bank of Mexico may request the Federal Economic Competition Commission to exercise its powers with respect to Financial Entities in terms of the Federal Economic Competition Law. For such purposes, said authorities may indicate the reasons motivating their request, as well as suggest sanctions that may be imposed in terms of said Law. (6) The National Commission for the Protection and Defense of Users of Financial Services, the National Banking and Securities Commission, the Ministry of Finance and Public Credit, credit institutions or regulated multiple-object financial societies may request the Bank of Mexico to evaluate whether or not there are reasonable competition conditions, with respect to active, passive and service operations of the aforementioned entities. (6) The Bank of Mexico may also evaluate whether or not there are reasonable competition conditions, with respect to active, passive and service operations by Financial Entities, and may request the opinion of the Federal Economic Competition Commission so that it, within a period of not less than thirty days and not more than sixty natural days following its request, in terms of the law governing it, determines among other aspects, whether or not there is effective competition, inflation, and the respective relevant markets. (6) Based on the opinion of the aforementioned agency, the Bank of Mexico, if applicable, shall take the relevant regulatory measures, which shall remain only while the conditions that motivated them subsist. In the regulation, the Bank of Mexico shall establish the bases for the determination of said Commissions and Interest Rates, as well as adjustment mechanisms and periods of validity. (5) The Bank of Mexico, the National Banking and Securities Commission and the
Ministry of Finance and Public Credit may request the Federal Economic Competition Commission to issue an opinion on the subsistence of the conditions that motivated the regulation. (6) Regardless of the sanctions provided in this Law, the Bank of Mexico may suspend operations with credit institutions that infringe the provisions of this provision. (6) The provisions of this article do not prevent the Bank of Mexico from exercising at any time the powers referred to in article 48 of the Law of Credit Institutions, nor those provided in the Law of the Bank of Mexico; nor does it limit the Federal Economic Competition Commission from, in terms of the Federal Economic Competition Law, directly evaluating whether or not there are reasonable competition conditions nor exercising its powers in terms of the applicable legislation. (6) The Federal Economic Competition Commission, when detecting practices that violate the competition and free concurrence process in matters of interest rates or in the provision of financial services, shall impose the corresponding sanctions in accordance with the law governing it and inform the Ministry of Finance and Public Credit and the Bank of Mexico thereof. (6) The Bank of Mexico shall promote that credit institutions and regulated multiple-object financial societies grant loans or credits under accessible and reasonable conditions. To this end, it must take into account the prevailing financing conditions in the national market, the cost of capture, the costs for granting and administering credits, the probabilities of default and foreseeable losses, the adequate capitalization of institutions and other relevant aspects. (6) The Bank of Mexico shall monitor that the aforementioned institutions grant loans or credits under accessible and reasonable conditions, and shall take the corrective measures corresponding so that such operations are offered under the terms mentioned above, even establishing limits to the interest rates applicable to specific operations; in which case it may take into account relevant comparative law formulas. The Bank of Mexico may differentiate its application by types of credit, market segments or any other criterion that proves relevant, as well as promote that low-income population sectors are not excluded from credit schemes.

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(4) Article 4 Bis.- The Bank of Mexico must incorporate, in the general provisions it issues on the matter of Commissions, norms that limit or prohibit those that distort sound intermediation practices, or detract from transparency and clarity in their charging.
(4) In matters of regulation, the Bank of Mexico, the National Commission for the Protection and Defense of Users of Financial Services and the Federal Consumer Protection Agency, within the scope of their respective competencies according to this Law, must consider the following:
(4) I. Entities may only charge Commissions that are linked to a service provided to the Client, or for an operation carried out by him; (4) II. Entities may not charge more than one Commission for the same act, fact or event. This same principle shall apply when so determined by the Bank of Mexico regarding acts, facts or events in which more than one Financial Entity intervenes, and (4) III. Entities may not charge Commissions that inhibit the mobility or migration of Clients from one Financial Entity to another. (4) Likewise, Financial Entities are prohibited from charging Commissions to Clients or Users for the following concepts:
(4) a) For the receipt of payments from Clients or Users of credits granted by other Financial Entities; (4) b) For balance inquiries at the counter, and (4) c) To the check depositor for credit to their account, whose payment is returned or rejected by the drawee bank.
(4) The provisions of this article do not limit or restrict the powers of the Bank of Mexico in terms of article 4 of this Law.
(4) Article 4 Bis 1.- The Commissions determined by Entities must be clear and transparent, for which they shall be subject to the following:
(4) I. Use simple and understandable language when establishing the concept of the Commission and the elements that integrate it; (4) II. Inform the amount to which the Commission amounts to, or, if applicable, the calculation method; (4) III. Clearly identify the fact, act or event that generates it; (4) IV. Indicate the date on which the fact that generated it occurred, as well as the date on which its payment must be made, and (4) V. Provide for the period it covers or, in case of single charge, indicate this circumstance, as well as its due date. (4) Article 4 Bis 2.- In order to increase competition in the financial system, the Bank of Mexico will publish bimonthly information and indicators on the behavior of interest rates and Commissions corresponding to different market segments, in order for users to have information that allows them to compare the cost charged by credit institutions, limited-object financial societies and regulated multiple-object financial societies in the different products they offer. (4) This information must be published by said institutions and societies in the statements sent to Clients in a clear and visible manner, whether in writing, electronic or any other form, referring to the rates, Commissions and comparisons to the segment of operations included in said statement and carried out by the Client.

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(7) Article 4 Bis 3.- For the purposes provided in Article 1 of this Law, the National Banking and Securities Commission and the Bank of Mexico, jointly, shall issue general provisions to regulate the terms and conditions under which services related to Payment Networks are provided, as well as the Interchange Fees and Commissions charged directly or indirectly, except for services provided by the Bank of Mexico and those referred to in the Payments Systems Law.

(7) In this regard, the following principles must be followed:

(7) I. Promotion of Competition; Expansion of Infrastructure and Reduction of Charges and Commissions. The regulation of Payment Networks in general and of charges to Clients or related third parties in particular, must promote the integration of new participants that expand the infrastructure and offer of services related to Payment Means, for the benefit of the economy in general and formalization in particular. To this effect, the National Banking and Securities Commission and the Bank of Mexico, jointly, may regulate, among others:

(7) a) That the balance of Interchange Fees, Commissions, or charges of any nature related to Payment Networks allows, in practice, the participation of the largest possible number of Participants in Networks, including acquirers that contract with establishments where Payment Means are used, as well as processors and owners of infrastructure or solutions related to Payment Networks.

(7) b) That the level of Interchange Fees and Commissions allows for greater competitiveness, benefiting both users of Payment Means and the businesses or establishments where Payment Means are used.

(7) c) That greater participation of Participants in Networks is permitted and promoted, provided they meet the requirements jointly established by the National Banking and Securities Commission and the Bank of Mexico, in accordance with the applicable legislative and regulatory framework, especially regarding information security and operations, and regarding transactional capabilities and interconnection, among others.

(7) d) That Interchange Fees be based on real and verifiable costs considering an adequate return.

(7) To this effect, said Interchange Fees, Commissions, or charges of any nature related to Payment Networks, shall be reviewed annually jointly by the National Banking and Securities Commission and the Bank of Mexico.

(7) II. Free Access. Payment Networks must allow access to their infrastructure, under equitable and transparent conditions, to Participants in Networks, including providers of complementary services for Payment Networks, Entities, processors, Issuing Entities of Payment Means, acquirers, and infrastructure owners, provided they have the authorization or approval, as applicable, to carry out their respective activity and comply with the parameters, agreements, and protocols of the Payment Network that adhere to the provisions referred to in this article. In particular and by way of mere enumeration, the National Banking and Securities Commission and the Bank of Mexico, jointly, shall have the authority to regulate the terms and conditions of Payment Networks to prevent the establishment of any entry barriers, formal, regulatory, economic, or practical, and in particular, may regulate:

(7) a) The terms and conditions of any requirement of solvency, technical, technological, scale, certification, parameters, agreements, protocols, or similar to be a member or participate in a Payment Network, to interconnect to said Network, or to exchange transactional or other information with it.

(7) b) The amount and concept of charges and payments related to the Payment Network or operations derived from or related to it, including without limitation, charges made to third members of the Payment Network other than businesses and clients, which include Interchange Fees, quotas, which cover discounts to businesses, and Commissions that may be charged to Clients or end users.

(7) c) The terms and conditions of any exclusivity provision regarding the Payment Network, including those established in contracts with businesses, issuers, and acquirers.

(7) d) The cases in which Issuing Entities of Payment Means cannot refuse to become part of a duly approved Clearing Chamber to perform clearing and settlement related to Payment Networks.

(7) e) That any participant in a Payment Network does not condition the contracting of operations or services to the contracting of another operation or service.

(7) f) Any other provision related to the Payment Network that may, formally or in fact, prevent, hinder, or discourage transactionality with other Payment Networks or with third parties who are members or operate with other Payment Networks, when its nature permits.

(7) III. Non-discrimination. Processors, Issuing Entities of Payment Means, acquirers, and other owners of infrastructure related to Payment Networks must carry out their respective activities and allow the activities of third parties in a non-discriminatory manner, promoting the interconnection of different Payment Networks with each other and the access of third parties to them, when their nature permits. To this effect, the National Banking and Securities Commission and the Bank of Mexico, jointly, may analyze and approve or not, as applicable, the rules of each Payment Network. In particular, the National Banking and Securities Commission and the Bank of Mexico, jointly, will intervene to prevent that in the aforementioned rules or in practice:

(7) a) Less favorable treatment is given to any third party under equal circumstances based on any concept.

(7) b) Discriminated practices, policies, or charges are established either by the characteristics of the third party or client, by the Payment Means used, or by the identity of the Issuing Entity, acquirer, or other accessories of the particular operation, except in those cases justified by differentials in the costs to provide the service in question, provided they are verifiable.

(7) c) Differentiated requirements, terms, or conditions are established for persons and/or operations under the same circumstances.

(7) IV. Protection of User Interests. Without prejudice to the powers conferred on other authorities, the National Banking and Securities Commission shall safeguard the protection of the interests of the end user of Payment Means, including holders thereof and businesses. In addition to the foregoing, the National Banking and Securities Commission shall seek:

(7) a) Transparency in the charging of Commissions, quotas, or charges of any kind, both for each operation, which includes any type of contractual right or prohibition under which these are instrumented, as well as at the level of periodic reports on the Internet page and also to the National Banking and Securities Commission for its periodic comparative publication;

(7) b) That there are no multiple charges, direct or indirect, or by various persons for the same operation or concept.

(7) c) That the level of any Interchange Fees or Commissions is adequate for the promotion of the use of Payment Means and is not discriminatory, by nature, size, and/or any other circumstance.

(7) d) That the level of any Quotas, including Interchange Fees, does not formally or in practice establish inadequate "floors" or "minimums" in charges to businesses or Clients.

(7) Additionally, any other power provided in this or another legal instrument, the National Banking and Securities Commission may request information from any of the participants in any Payment Network, being able, to this effect, to request and exercise measures of compulsion.

Article 5.- Entities that operate automated teller machines must inform on the screens thereof the Commissions charged for their use, as well as obtain prior consent from Clients for the charging of such Commissions.

(8) Article 6.- Credit institutions and regulated multiple-object financial societies, as well as financial technology institutions, shall register with the Bank of Mexico the Commissions they intend to charge for the payment and credit services they offer to the public, as well as their respective modifications. Such registration shall be carried out at least thirty calendar days in advance of the entry into force of the new Commissions or of the modifications to the previously registered ones when they imply an increase.

For the case of a reduction in the amount of such Commissions, the registration must be carried out at least two calendar days in advance of its entry into force.

The foregoing must be carried out in the form and terms that the Bank of Mexico itself establishes in general provisions.

(4) The Bank of Mexico shall have the authority to formulate observations on the application of such Commissions when they are new or imply an increase, within the fifteen business days following that in which said Financial Entities make them known to it. Before exercising said authority, the Bank of Mexico will hear the entity in question. The Bank of Mexico will make public the observations it formulates, as applicable, in accordance with this paragraph. In the event that the Bank of Mexico has formulated and published observations regarding the creation or increase of Commissions, and the entities referred to in the first paragraph of this article decide to apply the new commissions or the observed increase, the Bank of Mexico may veto it. If there are no observations, the Commissions will enter into force.

(6) The powers conferred on the Bank of Mexico in the preceding paragraphs of this article shall be understood as granted to the National Commission for the Protection and Defense of Users of Financial Services regarding unregulated multiple-object financial societies, popular financial societies, community savings and loan societies, savings and loan cooperatives, and credit unions.

(2) The Bank of Mexico will share with the National Commission for the Protection and Defense of Users of Financial Services the information of the Commissions registered in terms of this article, through the means agreed upon for such purposes, with the aim that said Commission makes them known on its electronic page on the worldwide "Internet".

(1) Article 7.- Entities must have in their branches or establishments updated information regarding the amounts, concepts, and periodicity of Commissions in signs, lists, and brochures visibly and conspicuously displayed, and allow such information to be obtained through an electronic medium located in said branches or establishments, so that any person requesting it is able to consult it free of charge, and when they have an electronic page on the worldwide "Internet", maintain such information on it. The National Commission for the Protection and Defense of Users of Financial Services, through general provisions, will specify standardized guidelines so that the information is accessible to clients.

Entities, through the means they agree upon with their Clients, must inform them of increases in the amount of Commissions, as well as new Commissions they intend to charge, at least thirty calendar days in advance of the date expected for these to take effect. Without prejudice to the foregoing, Clients, in the terms established by contracts, will have the right to terminate the provision of services granted to them by Entities in case they do not agree with the new amounts, without the Entity being able to charge them any additional amount for this reason, except for debts that have already been generated by the date the Client requests to terminate the service.

Non-compliance with the provisions of the preceding paragraph will result in the nullity of the Commission, independent of any sanctions that may apply.

Chapter III
On transparency regarding Payment Means and in the granting of credits, loans, and financing

Article 8.- The Bank of Mexico will establish through general provisions, the formula, components, and calculation methodology of the CAT, in relation to credits, loans, or financing granted by Entities. In such provisions, the Bank of Mexico will establish the types and amounts of credits, loans, or financing to which the CAT will apply.

(5) The Bank of Mexico will establish through general provisions, the formula, components, and calculation methodology of the GAT. In such provisions, the Bank of Mexico will establish the types and amounts of operations to which the GAT will apply.

Article 9.- The ordinary and default interest rates that appear in the documents instrumenting the credits, loans, and financing granted by Entities, as well as those mentioned in account statements, must be expressed in annual terms, as well as highlighted in distinctive characters clearly, notably, and undeniably.

When Entities agree on a reference rate in their credit, loan, or financing operations, they must agree on one or more substitute reference rates, in the event that the originally agreed reference rate ceases to exist, and must agree on the order in which, as applicable, such substitute reference rates would replace the originally agreed rate.

Article 10.- In the credits, loans, or financing granted by Entities, the payment of interest cannot be demanded in advance, but only for expired periods, without prejudice to compliance with applicable commercial legislation. The Bank of Mexico, through general provisions, will determine the amounts and types of credits, loans, and financing to which this article will apply, of which Entities are obligated to inform their clients at the time of agreeing on the terms of the credit.

(2) Article 10 Bis.- Entities that grant credit, loan, or financing of any type, including those massively concluded with persons incapable due to minority age in terms of common legislation, regardless of the nullity of such acts, will be subject to the sanctions established by this Law.

(6) Article 10 Bis 1.- In consumer credits granted by Entities, the termination of the contract may be made at any time by the accredited Client, in which case the legal relationship derived from previously disposed resources will only remain in effect for the purpose of paying the principal with the corresponding interest and accessories for the granted credit, proceeding to the cancellation of the Payment Means, if applicable.

(6) In the event that a consumer credit is paid by contracting a new one with another Entity, Clients may agree with the latter to carry out the necessary procedures to terminate said credit with the original Entity.

(6) It will be the responsibility of the Entity requesting the cancellation of the operation to have the authorization of the holder or holders of the credit in question, duly granted in accordance with what is provided in this article.

(6) The Entity with which the Client has decided to terminate the operation will be obligated to inform the Entity responsible for carrying out the respective termination procedures of all necessary information for this purpose, including that related to outstanding credit balances. For these purposes, the request sent by the latter in the terms referred to in the last paragraph of this article will suffice.

(6) In the event that the Client objects to the termination of the contract for not having granted the respective authorization, any damage or prejudice caused to said Client or other Entities will be the responsibility of the requesting Entity. The foregoing, without prejudice to the sanctions applicable in terms of this or other laws.

(6) The requests, authorizations, instructions, and communications referred to in this article may be carried out in writing with autograph signature or through electronic, optical, or any other technology previously agreed upon by the parties, provided that the legal act in question can be reliably proven.

(6) The provisions of this article will be subject to general provisions issued by the National Commission for the Protection and Defense of Users of Financial Services.

(2) Article 10 Bis 2.- Entities may contact their clients, who have expressly authorized it, only at their place of work, directly or by telephone, to offer a financial service, during the agreed schedule. Entities must in all cases verify the register of users referred to in the third paragraph of Article 8 of the Law on Protection and Defense of Users of Financial Services.

(1) Article 11.- Adhesion Contracts used by Financial Entities to document massive operations must comply with the requirements established through general provisions by the National Commission for the Protection and Defense of Users of Financial Services. The provisions will specify the specific types of Adhesion Contracts to which they will apply and what is understood by massive operations in terms of this article.

(1) Adhesion Contracts employed by Commercial Entities must comply with the requirements established through general provisions by the Federal Consumer Protection Agency.

The provisions mentioned in the preceding paragraphs must consider the following aspects:

I. Sound banking and commercial practices, as applicable, related to the operation or service;

II. The use of formats that facilitate the reading and understanding of the obligational content of the contracts;

(2) II Bis. The use of a cover sheet for adhesion contracts defined in the cited provisions to facilitate their reading, understanding, and comparison, must contain among other aspects, the following:

(2) a) The essential elements of the operation that allow the Client to compare services of the same type offered by various Entities;

(2) b) Warnings regarding rates and Commissions that represent penalties for the Client and the circumstances in which they would apply;

(2) c) Clear fields that allow distinguishing terms and conditions such as Commissions and Interest Rates, the CAT, and the total amount to be paid in the case of credits, loans, or financing, and

(2) d) Those that contribute to transparent and facilitate their reading, understanding, and comparison.

III. The bases to clearly establish the characteristics, terms, and conditions of the service;

IV. The notification procedures and bases for acceptance by Clients of modifications to Adhesion Contracts through which they have contracted operations or services;

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(1) V. The procedure to be followed for the cancellation of the service; (1) VI. The billing concepts and their amounts; (2) VII. The space where the guarantor, surety, or jointly liable party must sign in any adhesion contract that documents a credit, loan, or financing, incorporating a warning regarding the consequences of signing the contract in the event that the principal obligor defaults for any cause, and (2) VIII. The National Commission for the Protection and Defense of Financial Services Users may require the inclusion of explanatory legends.

(1) Additionally, the National Commission for the Protection and Defense of Financial Services Users will indicate the types of Adhesion Contracts that document the operations or services entered into by Financial Entities, which require prior authorization from said Commission.

(1) Financial Entities must submit to the National Commission for the Protection and Defense of Financial Services Users the models of Adhesion Contracts, so that it may compile a Registry of Adhesion Contracts for public consultation.

(1) The Federal Consumer Protection Agency and the National Commission for the Protection and Defense of Financial Services Users, within the scope of their respective competencies, will review the Adhesion Contract models to verify that they comply with the provisions issued pursuant to this provision.

(1) Likewise, the aforementioned Federal Consumer Protection Agency and National Commission for the Protection and Defense of Financial Services Users, within the scope of their respective competencies, may order that the Adhesion Contract models be modified to align them with the laws and other applicable provisions, and, where applicable, suspend their use regarding new operations until they are modified.

(1) Any Adhesion Contract entered into within national territory, for its validity, must be written in Spanish and must contain the signature or digital fingerprint of the Client or their express consent through electronic means agreed upon for this purpose.

The models of Adhesion Contracts must contain the Commissions charged by the Entity. It is prohibited for such entities to charge or bill Commissions that are not provided for in the Adhesion Contracts or that are modified in contravention of this Law. Any modification to the Commissions, when applicable, must be registered in accordance with Article 6 of this Law.

(2) Article 11 Bis.- Persons authorized by the holder of a revolving credit associated with a card to use additional cards may in no case be held jointly or severally liable for it. In the event that authorized cardholders continue to use additional credit cards after the death of the cardholder, the issuing Entity may demand payment from each of such cardholders for the transactions they have made charged to the account.

(2) Article 11 Bis 1.- Clients will have a grace period of ten business days following the signing of an adhesion contract that documents mass operations established by the general provisions referred to in Article 11 of this Law, with the exception of credits with mortgage guarantee, to cancel it, in which case, Entities may not charge any Commission, returning things to the state in which they were before its signing, without any liability for the Client. This is always provided that the Client has not used or operated the contracted financial products or services.

(1) Article 12.- Financial Entities will comply with the general provisions issued by the National Commission for the Protection and Defense of Financial Services Users, in which it establishes the form and terms that must be met by advertising related to the characteristics of their active, passive, and service operations.

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(1) The Federal Consumer Protection Agency, within the scope of its competence, will issue general provisions regulating what is established in the preceding paragraph for credits, loans, or financings and Disposition Means issued or granted by Commercial Entities.

The general provisions referred to in this article must consider the following aspects:
I. The truthfulness and accuracy of information related to the products or services offered;
II. That they do not contain elements of unfair competition;
III. Transparency in the characteristics and, where applicable, inherent risks of the product or service;
(2) IV. Transparency in the requirements for granting credits with preferential rates or certain credit limits.
V. The formation of financial culture among the general public;
VI. Contact points for additional information, and
VII. The mechanisms for Entities to make known to the general public the commissions they charge.

(1) The National Commission for the Protection and Defense of Financial Services Users may order the suspension of advertising carried out by Financial Entities when, in its opinion, it implies inaccuracy, or unfair competition among them, or that for any other circumstance it may induce error, regarding their operations and services, or if it does not comply with what is provided in this article, as well as in the general provisions issued based on this provision.

(1) The Federal Consumer Protection Agency, within the scope of its competence, may order the suspension of advertising carried out by Commercial Entities, in the terms referred to in the preceding paragraph.

(1) Article 13.- Entities must send to the address indicated by Clients in the respective contracts or to that subsequently indicated, the statement of account corresponding to the operations and services contracted with them, which will be free of charge for the Client.

(1) Clients may agree with Entities that, in substitution of the aforementioned obligation, the said statement of account may be consulted through any means agreed upon by both parties for this purpose.

(1) The aforementioned statements of account, as well as operation receipts, must comply with the requirements established for Financial Entities by the National Commission for the Protection and Defense of Financial Services Users; and for Commercial Entities, those established by the Federal Consumer Protection Agency, equally through general provisions.

(1) The aforementioned general provisions must consider the following aspects:
(1) I. Clarity and simplicity in the presentation of the information contained in the statements of account and in the operation receipts, which allows knowing the status of transactions carried out by the Client in a period previously agreed upon by the parties; (1) II. The basis for incorporating into the statements of account and operation receipts, the Commissions and other concepts that the Entity charges the Client for the provision of the service or operation in question, as well as other characteristics of the service; (1) III. The relevant information regarding the charging of Commissions for various concepts, the charging of interest, balances, credit limits, and warnings about the risks of the operation and the CAT, among other concepts.

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(1) IV. The incorporation of information that allows comparing Commissions and other applicable conditions in similar operations; (1) V. In the case of Financial Entities, they must contain the location and contact data with the specialized unit that, in terms of the Law for the Protection and Defense of Financial Services Users, they must maintain, for purposes of clarifications or claims related to the service or product in question, as well as the deadlines for presenting them. In the case of Commercial Entities, they must contain, at least, the telephone numbers of consumer services for the aforementioned purposes; (1) VI. For credit operation statements, incorporate warning legends in the case of excessive indebtedness and the impact of credit default on the credit history, and (1) VII. Those that the competent authorities determine, in terms of the applicable provisions.

(1) The National Commission for the Protection and Defense of Financial Services Users may order modifications to the statements of account issued by Financial Entities when they do not comply with what is provided in this article or in the general provisions emanating from the provision itself.

(1) The National Commission for the Protection and Defense of Financial Services Users may make observations and order modifications to the statements of account that document the operations or services entered into by Financial Entities.

(1) The Federal Consumer Protection Agency may order modifications to the statements of account issued by Commercial Entities when they do not comply with what is provided in this article or in the general provisions emanating from the provision itself.

(5) Article 13 Bis.- The National Commission and the Federal Consumer Protection Agency, within the scope of their respective competencies, when dealing with serious and repeated offenses, may order the suspension of the celebration of new operations and similar services, until such time as the statements of account are modified, in accordance with what is established in Article 13 of this Law.

(3) Article 14.- Repealed.

(1) Article 15.- In the case of granting credits, loans, or financings granted by Entities to which the CAT is applicable in accordance with the provisions referred to in Article 8 of this Law, advertising and Adhesion Contracts must contain said CAT, when so established by the general provisions that, pursuant to Articles 11 and 12 of this Law, are issued by the Federal Consumer Protection Agency and the National Commission for the Protection and Defense of Financial Services Users, within the scope of their respective competencies.

The information referred to in this article must be highlighted in distinctive characters in a clear, notorious, and indisputable manner.

(5) Article 15 Bis.- In the case of passive operations carried out by credit institutions and popular savings and credit entities to which the GAT is applicable in accordance with the provisions referred to in Article 8 of this Law, advertising and Adhesion Contracts must contain said GAT, when so established by the general provisions referred to in Articles 11 and 12 of this Law.

(7) The information referred to in this article must be highlighted in distinctive characters in a clear, notorious, and indisputable manner.

Article 16.- Credit institutions are obligated to receive checks subject to good collection and fund transfer orders for credit to the beneficiary's account. Likewise, credit institutions, limited object financial societies, and regulated multiple object financial societies are obligated to receive checks subject to good collection and fund transfer orders for the payment of the principal, interest, Commissions, and expenses, of the credits, loans, or financings they grant to their Clients.

The fund transfer orders mentioned in the preceding paragraph may be sent at the request of the Client or by a third party, and the issuer may be any person authorized to do so.

Likewise, checks may be drawn by the Client or by a third party, charged to any credit institution.

Likewise, credit institutions will be obligated to receive and process debit instructions in the deposit accounts and current account credit openings of their clients, which are received derived from domiciliation services provided for in the Credit Institutions Law, as well as from other operations determined by the Bank of Mexico through general provisions. This is always provided that there are sufficient funds in the respective accounts.

Credit institutions, limited object financial societies, and regulated multiple object financial societies will be subject to the general provisions that the Bank of Mexico issues for the purposes of what is provided in this article, in which, among others, the types and amounts of operations subject to the present article will be determined.

Article 17.- Entities are prohibited from carrying out discriminatory practices.

For the purposes of this Law, discriminatory practices are considered:
I. Acts carried out to prevent the celebration of operations with Clients of certain Entities;
II. The charging of different Commissions based on the issuer of the corresponding Disposition Means, and
III. Acts carried out to prevent Clients from using the infrastructure of other Entities, or to discourage their use.

(7) IV. Any act that limits, restricts, or prevents any person on equal conditions from contracting any product or service meeting the prior requirements indicated by the Entities.

(6) Entities may exempt from the payment of Commissions or establish lower Commissions for their account holders or accredited clients when they use their own infrastructure, as well as for account holders or accredited clients of other Entities that use said infrastructure, provided that such Entities enter into an agreement for these purposes, which must be authorized by the Bank of Mexico prior to its celebration.

(7) To grant the authorization referred to in the preceding paragraph, the Bank of Mexico will take into account that such agreement does not include discriminatory clauses and that it promotes competitive conditions, improves services for users, promotes transparency in the charging of commissions by the infrastructure operator, and generates incentives for the more efficient use of the infrastructure and its growth.

Each Entity is prohibited from charging more than one Commission to its Clients regarding the same generating event, as well as applying Commissions under significantly more unfavorable conditions for Clients than those prevailing in the market.

(7) Article 17 Bis 1.- Entities, through electronic means and branches, must have available to their Clients, sufficient identification data of external offices, which will include third parties or representatives that carry out the collection of the credits they grant, as well as those that support in the negotiation and restructuring operations of credits with their Clients or with those persons who for some reason are debtors before the Entities.

(7) Article 17 Bis 2.- Entities must have the information cited in the previous article duly updated and contain at least the following data: name of the office, address, phones, and name of the partners.

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(7) Article 17 Bis 3.- Entities constantly supervise the activities carried out by their collection offices, as well as the status of complaints presented, allowing the Client to follow up on them.

(7) At the time of making collections, the collection office and the Entity must be fully identifiable.

(7) Article 17 Bis 4.- Within the scope of their competencies, both the National Commission for the Protection and Defense of Financial Services Users and the Federal Consumer Protection Agency may issue general provisions in matters of collection offices.

(6) Article 18.- Credit institutions in which the deposit of salaries, pensions, and other labor-related benefits are made will be obligated to attend to workers' requests to periodically transfer the total amount of deposited resources to another credit institution of their choice, without the institution transferring the resources being able to charge any penalty or fee to the worker who requests this service. Likewise, workers may agree with the credit institution they choose as the recipient of their resources to carry out the procedure referred to in this article on their behalf and account.

(6) When the transfer request is made by the destination credit institution on behalf and for the account of the worker, the communication sent by it to the original credit institution will suffice.

(6) It will be the responsibility of the institution requesting the transfer of resources on behalf and for the account of the worker, to have the worker's due authorization for the performance of the acts provided for in this article, keeping a record of it.

(6) If the worker objects to the transfer of resources carried out because the resources were not deposited in an account of which they are the holder, the destination institution will be obligated to deliver the resources in question to the original institution so that it credits them to the worker's corresponding account.

This is independent of the payment of damages and losses caused to the worker and the applicable sanctions in terms of this or other laws.

(6) Workers may cancel the transfer request provided for in this article at any time. The cancellation will take effect no later than the second business day after receipt.

(6) Public entities, in the contracting of financial services for the payment of their workers' salaries, will guarantee favorable conditions for their benefit.

(6) For the purposes of what is provided in this article, credit institutions must comply with the general provisions issued by the Bank of Mexico, who must hear the prior opinion of the National Banking and Securities Commission.

(2) Chapter III Bis
Of revolving credits, loans, or financings associated with a card

(2) Article 18 Bis.- In the case of revolving credits, loans, or financings associated with a card and unsecured personal liquidity credits massively celebrated, Entities will document the aforementioned operations in writing in the forms containing the requests they use to contract with their Clients, in the following terms:

(2) I. In the said forms, it must be recorded that the Client was made aware of the content of the respective clauses.

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(2) II. In the respective forms, the registration data of the Adhesion Contract in the registry referred to in the fifth paragraph of Article 11 of the Law must be indicated.

(8) Both for the contracting and in the event of any controversy regarding revolving credits, loans, or financings, it will be understood that the valid adhesion contract in the operation in question is the one registered with the National Commission for the Protection and Defense of Financial Services Users.

(2) III. The respective Adhesion Contract and its cover sheet attached with the Disposition Means or identification, in the case of current account credit openings or unsecured personal liquidity credits, or models of contracts related to the operations in their offices, branches, and Internet, when so agreed with said Clients, must be sent.

(2) Entities may only issue and deliver cards associated with new credits, upon the Client's request in terms of this article. The same restriction will be applicable to unsecured personal liquidity credits, so they may not maintain credit lines exercisable unless there is an express request from the Client.

(2) The provisions of this article will not be applicable to the renewal of credits through the delivery of new disposition means.

(2) Article 18 Bis 1.- Entities will only grant revolving credits, loans, or financings associated with a card prior to estimating the payment viability of applicants, using an analysis based on quantitative and qualitative information that allows establishing their credit solvency and payment capacity.

(2) Entities may only increase the credit limit in revolving credits, loans, or financings associated with a card, for Clients who have a compliance behavior in their credit commitments, in which case, the Entity must formulate an offer to increase the limit of their credit, loan, or financing, which must be expressly accepted by the Client in verbal, written, or electronic form in terms of the applicable legislation.

(2) Article 18 Bis 2.- In the revolving credits, loans, or financings associated with a card granted by Entities, a single maximum ordinary interest rate and, where applicable, a single maximum delinquent interest rate must be agreed upon.

(2) Additionally, Entities may grant promotional interest rates, which in all cases must be lower than the maximum ordinary interest rate, provided that their terms and conditions are clearly stipulated.

(2) Article 18 Bis 3.- The ordinary interest rate reflected in the statements of account received by Clients from Entities in revolving credit, loan, or financing operations associated with a card may vary without the need for any notification or notice to the Client, in the following cases:

(2) I. When Changes to the ordinary interest rate are inherent to variations in the level of the reference rate, and

(2) II. In the event that, due to its validity or the client's credit behavior in accordance with what is agreed in the contract, a promotional interest rate expires.

(2) In any other case, the increase in the ordinary interest rate to be reflected in the statements of account must be notified to Clients in said statement of account at least thirty calendar days in advance of the date scheduled for the increase to take effect.

(2) The interest rates in this type of operations will be subject to the general provisions issued by the Bank of Mexico pursuant to Article 4 of this Law.

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(2) Article 18 Bis 4.- The general provisions regarding account statements issued under Article 13 of this Law, in the case of Consumer Credits granted by Entities, must provide a way to inform the Client of the deadline and payment conditions, as well as the mention that if such deadline falls on a non-working day, payment may be made on the next working day. (2) Likewise, in the general provisions referred to in Article 13 of this Law, for the case of account statements of Consumer Credits, the time period that the Client would need to settle a debt if only covering the minimum payment of the balance corresponding to the date of issuance of the statement must be incorporated. (2) Article 18 Bis 5.- If in the contracts of revolving credits, loans, or financing associated with a card, as well as personal liquidity credits without real guarantee, at the time of contracting an insurance is offered to the Client at their expense, which is not provided as mandatory by virtue of the applicable regulations or is not established as a contracting requirement by the Entity, the cost and consent to contract said insurance must be expressly stated and it must be indicated in the same section where the Client's consent is sought, that the contracting of said insurance is optional and that the cancellation of the insurance does not imply the cancellation of the contract. (2) Article 18 Bis 6.- In the revolving credits, loans, or financing associated with a cards that Entities grant, interest may only be charged on the outstanding daily balances included within the interest calculation period of the account statement in question. (2) Article 18 Bis 7.- The Bank of Mexico through general provisions will determine the minimum payment amounts that Financial Entities must charge, in the revolving credits, loans, or financing associated with a card. (2) When issuing the aforementioned provisions, the Bank of Mexico must ensure that there are no negative amortizations in the credit granted and ensure that debts are covered in a reasonable period. (2) Article 18 Bis 8.- It is prohibited to charge any Commission for the concept of overdraft or attempted overdraft in revolving credits, loans, or financing associated with a card, as well as personal liquidity credits without real guarantee.
Chapter IV
Common Provisions
(6) Article 19.- The Bank of Mexico will be empowered to regulate, through general provisions, after hearing the prior opinion of the National Banking and Securities Commission, the functioning and operation of the Clearing Houses of any Disposition Medium, as well as the charges they make for the realization of their operations.
(5) The charges that the Clearing Houses charge for the provision of their services to their participants, must not be determined based on the shareholding that, in their case, they have in the aforementioned Clearing Houses.
(5) Article 19 Bis.- To organize and operate as a Clearing House, authorization will be required which will correspond to be granted by the Bank of Mexico.
(5) For such purposes, the interested party must present the information and documentation that said Central Bank indicates through general provisions.
(6) The Clearing Houses will be obliged to link their operation processing systems of Disposition Mediums to respond to payment authorization requests, returns, and adjustments sent to them by other Clearing Houses, under the terms that, through general provisions, the Bank of Mexico establishes, having previously heard the opinion of the National Banking and Securities Commission.

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(5) The Clearing Houses may not charge other Clearing Houses consideration for said link and for the transmission of information between them or any other concept, except for direct installation expenses. Additionally, the Clearing Houses are prohibited from establishing any type of entry barrier to other Clearing Houses.
(6) The applicable standards, conditions, and procedures will be established by the Bank of Mexico through general provisions, having previously heard the opinion of the National Banking and Securities Commission. In said provisions, the elimination of entry barriers to new Clearing Houses must be promoted.
(1) Article 20.- The National Commission for the Protection and Defense of Users of Financial Services will be empowered to supervise and monitor compliance with this Law by Financial Entities, as well as to hear any controversy related to the application of this Law between Clients and Financial Entities and between Clients under the applicable provisions. In the case of Commercial Entities, the Federal Consumer Protection Agency will be empowered to hear any controversy related to the application of this Law between Commercial Entities and their Clients.
Article 21.- Financial Entities and Clearing Houses will be obliged to supply the Bank of Mexico, in the form and terms that it requires, information on the Disposition Mediums, credits, loans, and financing respectively, as well as, in general, that which is useful to the Bank to provide adequate fulfillment of its functions.
Commercial Entities will be obliged to supply the Federal Consumer Protection Agency, in the form and terms that it requires, information on the Disposition Mediums, credits, loans, or financing respectively, as well as, in general, that which is useful to it to provide adequate fulfillment of its functions.
(10) Article 22.- The general provisions, such as circulars and rules, as well as other acts and notifications issued by the Bank of Mexico in the exercise of the powers granted to it by the Political Constitution of the United Mexican States, and the laws, may be made known:
I. Through publication in the Official Gazette of the Federation, or
II. Through the means determined by the Bank of Mexico through general provisions.
The publications made by the Bank of Mexico in the Official Gazette of the Federation in accordance with this article, will be exempt from the payment of rights in terms of the Federal Rights Law.
For the effects of fraction II of this article:
(10) a) The credit institutions, entities, and financial intermediaries in question, must provide the Bank of Mexico with the information it requires to make known the provisions, acts, and notifications mentioned. The provisions, acts, and notifications that the Bank of Mexico sends or communicates based on the information provided by the credit institutions, entities, and financial intermediaries, bind and produce their effects in the terms they indicate. (10) b) When the provisions, acts, and notifications of the Bank of Mexico are sent to credit institutions, entities, or financial intermediaries, through electronic means other than fax, which allow attaching the data message and signing it electronically, the respective signatures must correspond to the officials competent to issue them in terms of the Internal Regulations of the Bank of Mexico, and have been generated based on the signature creation data in accordance with the procedures and systems of the Extended Security Infrastructure administered by said Bank of Mexico.

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(11) The Bank of Mexico will be empowered to supervise and monitor compliance, by the corresponding subjects, of the provisions of the laws that confer it attributes to regulate specific acts and operations indicated in said provisions, without prejudice to the supervision and monitoring powers that said laws confer on any other authority regarding the other provisions contained therein. In the exercise of said supervision and monitoring powers, the Bank will observe what is provided in this regard in the Bank of Mexico Law, as well as in the general rules issued by it, to provide for the observance of its own regulation. (1) Article 23.- In all operations and services that Financial Entities celebrate through Adhesion Contracts celebrated en masse and up to the maximum amounts established by the National Commission for the Protection and Defense of Users of Financial Services in general provisions, they must provide their Clients with the assistance, access, and facilities necessary to address clarifications related to said operations and services. (1) To this effect, without prejudice to the other procedures and requirements imposed by other financial authorities empowered to do so in relation to operations within their scope of competence, in all cases the following will apply:
I. When the Client does not agree with any of the movements appearing in the respective account statement or in the electronic, optical, or any other technology means that have been agreed upon, they may present a clarification request within a period of ninety natural days counted from the date of the cut or, in its case, from the realization of the operation or the service.
The respective request may be presented at the branch where the account is located, or in the specialized unit of the institution in question, in writing, by email, or any other means by which its receipt can be reliably proven. In all cases, the institution will be obliged to acknowledge receipt of said request.
(1) In the case of amounts charged to the Client disposed of through any mechanism determined for this purpose by the National Commission for the Protection and Defense of Users of Financial Services in general provisions, the Client will have the right not to make the payment whose clarification is requested, as well as that of any other amount related to said payment, until such time as the clarification is resolved in accordance with the procedure referred to in this article;
II. Once the clarification request is received, the institution will have a maximum period of forty-five days to deliver the corresponding ruling to the Client, attaching a simple copy of the document or evidence considered for the issuance of said ruling, based on the information that, in accordance with the applicable provisions, should be in its possession, as well as a detailed report in which all the facts contained in the request presented by the Client are answered. In the case of claims related to operations carried out abroad, the period provided in this paragraph will be up to one hundred eighty natural days.
The aforementioned ruling and report must be formulated in writing and signed by institution personnel authorized to do so. In the event that, in accordance with the ruling issued by the institution, the charge of the respective amount is appropriate, the Client must make the payment of the amount at their charge, including ordinary interest in accordance with what was agreed, without the charge of late interest and other accessories generated by the suspension of payment carried out in terms of this provision;
III. Within the period of forty-five natural days counted from the delivery of the ruling referred to in the previous fraction, the institution will be obliged to make available to the Client at the branch where the account is located, or in the specialized unit of the institution in question, the file generated due to the request, as well as to integrate into it, under its strictest responsibility, all the documentation and information that, in accordance with the applicable provisions, should be in its possession and that relates directly to the clarification request that corresponds and without including data corresponding to operations related to third parties;

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(1) IV. In the event that the institution does not give a timely response to the Client's request or does not deliver the ruling and detailed report, as well as the documentation or evidence mentioned above, the National Commission for the Protection and Defense of Users of Financial Services, will impose a fine in the terms provided in fraction XI of Article 43 of this Law for an amount equivalent to that claimed by the Client in terms of this article, and
V. Until such time as the clarification request in question is not resolved in accordance with the procedure indicated in this article, the institution may not report as overdue the amounts subject to said clarification to credit information societies.
(6) What is stated above is without prejudice to the right of Clients to go before the National Commission for the Protection and Defense of Users of Financial Services or before the corresponding jurisdictional authority in accordance with the applicable legal provisions, as well as to the sanctions that must be imposed on the institution for non-compliance with what is established in this article. However, the procedure provided in this article will become ineffective from the moment the Client files their lawsuit before a jurisdictional authority or conducts their claim in terms and deadlines of the Law for the Protection and Defense of the User of Financial Services. (7) Article 23 Bis.- It will be prohibited for Entities to condition the contracting of financial operations or services to the contracting of another operation or service. (7) Without prejudice to the above, Entities may offer financial products and services of other Entities that are linked to the products and services offered to the Client, when there is the express consent of the Client to contract the additional or linked products or services with the requested operation or service, under the premise that it is an undeniable right of the Client to contract these through an independent third party. (7) What is provided in the previous paragraph must be informed to Clients through the contracts that are celebrated with them, as well as through the advertising of the financial products and services in question. (7) Financial Institutions that maintain contracts with Clients regarding certain products and services, must request approval at the time of signing by the Clients, to share information about them, which is not subject to secrecy provisions with third parties that offer other types of additional products and services and that are related to the product or service being contracted. (7) Article 23 Bis 1.- Entities must be Users of at least one credit information society, and must periodically provide information on all credits, loans, or financing they grant, in the terms provided by the Law to Regulate Credit Information Societies. (7) Article 23 Bis 2.- The provision of additional services by Financial Entities must be clear, without causing the Client's consent for the acceptance of services and products to be deceptive or surprising.
Chapter V
Of the administrative sanctioning procedure
Section I
Of the general provisions
Article 24.- The authority of authorities to impose administrative sanctions established in this Law, will expire in a period of five years, counted from the next working day after the conduct was carried out or the infringement assumption was met.
(11) In the case of continuous conduct, the period referred to in the previous paragraph will be computed from the moment it ceases and in the case of continued conduct, said period will count from the consummation of the last conduct.

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(10) The five-year period provided in the first paragraph of this article will be interrupted, for the effects of the start of the administrative sanctioning procedure, from the moment of notification to the alleged infringer of the letter by which they are granted the right to a hearing, in terms of what is provided in Articles 28 and 29 of this Law. (11) Likewise, the five-year period provided by this article will be suspended:
I. For up to two years, when the Financial Entity: is not located at the registered address with the respective Authority without having presented the corresponding change notice, or has indicated an incorrect address.
Said period will resume from the date on which the Authority becomes aware of the current address.
II. When the Financial Entity has contested any of the acts related to the sanction imposition process. Such suspension will be computed from the date of filing of the defense means and until the date on which the corresponding final resolution is issued.
(11) Article 24 Bis.- In the case of the Bank of Mexico's authority to impose administrative sanctions, for infringements of provisions of other laws, as well as to the provisions it issues based on said laws, when these do not expressly provide a period for the expiration of its attributes, the terms and conditions of the previous Article 24 will apply.
Article 25.- The administrative procedure will be autonomous from the repair of damages and losses that, in their case, are demanded by the persons affected by the acts in question.
(10) Article 26.- All actions must be carried out on working days and hours. Working days, with respect to Financial Entities, will be all days of the year, except Saturdays and Sundays and those determined by the competent Authority to resolve the respective administrative sanctioning procedure, through general provisions, agreements, or publications, made in the Official Gazette of the Federation with the periodicity determined by each Authority. Working hours, with respect to financial entities, will be those comprised between nine and eighteen hours. Likewise, working days with respect to commercial entities will be those designated as such in the Federal Administrative Procedure Law. Without prejudice to what is provided in this article, Authorities may carry out notifications by electronic means outside the working hours provided in the previous paragraph, in which case they will be understood as carried out in the immediate next working hour to the moment in which it was carried out. (10) Article 27.- Notifications made by Authorities may be carried out electronically through the systems that they themselves indicate in the general provisions they issue for this purpose. In what is not provided in the provisions mentioned in this paragraph regarding electronic notifications, as well as in the case where notification through said channel is not possible, the Fiscal Code of the Federation in its part relative to notifications will be applicable. In the case of notifications that correspond to be carried out by the Bank of Mexico, these will be subject in addition to the ordinance referred to in the previous paragraph, to the general rules issued for this purpose.
Section II
Of the start of the procedure
Article 28.- Authorities prior to the imposition of the sanctions that correspond to them to apply in accordance with this Law, will notify in writing to the alleged infringer the facts attributed to them and the provisions that are considered probably infringed.
(10) Article 29.- In the notification referred to in the immediate preceding article, Authorities must grant the right to a hearing to the alleged infringer, in order that in a period of ten working days,

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The Authorities, at the request of a party, may extend the aforementioned deadline by one occasion only, for up to the same period, taking into account the particular circumstances of the case.
Section III
Of the instruction of the procedure
Article 30.- In the administrative sanctioning procedure, all kinds of evidence will be admitted, except testimonial evidence and confession from the Authorities or their public servants, through absolution of positions. The request for reports to the Authorities, regarding facts recorded in their files or documents attached to them, will not be considered included in this prohibition.
Subsequent evidence may be presented, provided that the instruction has not been closed.
(10) The offering, admission, preparation, execution, and valuation of evidence will be done in the terms and conditions established in the Federal Code of Civil Procedures.
(10) Article 31.- Once the deadline referred to in article 29 of this Law and, if applicable, its extension has concluded, the Authorities will have up to sixty business days to execute the evidence.
Once the evidence admitted against the alleged offender has been executed, the corresponding Authority will notify the opening of a five-business-day period to formulate arguments. The respective Authority may carry out such notification by court records or by any other means, in cases where it so determines.
The day following the expiration of the deadline to formulate arguments, the instruction will be considered closed, and the respective Authority will have a deadline no greater than one hundred eighty business days to issue and notify the resolution that ends the sanctioning procedure and imposes, if appropriate, the sanctions that proceed according to law. (11) Article 31 Bis.- Regarding the faculty of the Bank of Mexico to impose administrative sanctions for infringements of provisions of other laws, as well as the dispositions issued therefrom, when those laws do not expressly provide the stages and deadlines for the exercise of that faculty, the Bank will observe what is provided in the previous article 31.
Section IV
Of the resolution of the procedure
Article 32.- In the imposition of administrative sanctions, the Authorities must take into account:
I. The economic capacity of the offender.
II. The gravity of the committed infringement.
III. The mitigating or aggravating factors.
It will be taken as a mitigating factor when the offender, prior to the notification referred to in article 28 of this Law, informs in writing to the competent authority to impose the sanction: a) the infringement; b) the express recognition of it, and c) a correction program. In this case, the minimum amount of the fine corresponding under this Law will be imposed on the offender, without prejudice to what is provided in articles 34 and 35 of this Law. Recidivism will be considered an aggravating factor. One who has incurred in an infringement that has been sanctioned, commits another of the same type or nature, within the two years immediately following the date on which the corresponding resolution became final, will be considered a recidivist. In that case, the authorities may impose a fine equivalent to up to double the one provided in this Law.

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Article 33.- To calculate the amount of the fines, the general daily minimum wage in the Federal District, in effect on the day the infringing conduct occurs, will be used as the base.
Article 34.- Taking into account the circumstances of each case, the Authorities may, in addition to imposing the corresponding fine, admonish the offender, or merely admonish them, considering the gravity of the conduct, that third-party interests are not affected, as well as the existence of mitigating factors.
Article 35.- The Authorities may abstain from sanctioning Entities and Compensation Chambers, provided that they refer to the infringing conduct indicated in articles 40, 41, 44 first paragraph, 45, and 47, do not constitute a crime, and the mitigating circumstances referred to in this chapter are present. The corresponding authority must justify the causes that motivated the exercise of this faculty.
Article 36.- Sanctions may be imposed both on Entities or Compensation Chambers, prior to the right to a hearing granted to them in accordance with articles 28 and 29 of this Law.
Article 37.- Under no circumstances will the same fact constitutive of the infringement be sanctioned on two or more occasions, nor by two or more administrative authorities.
When several infringements to which this Law imposes a sanction are committed for the same act or omission, the total thereof shall not exceed the maximum amounts provided in this regulation.
Article 38.- The fines that the Authorities impose in accordance with this Law must be paid within fifteen business days following the date of their notification. When fines are not paid within the stated deadline, their amount will be updated from the month in which payment should have been made until it is effected, in the terms established by the Federal Tax Code for this type of situation.
In the event that the offender pays the fines imposed by the Authorities within the fifteen days referred to in the preceding paragraph, a reduction of twenty percent of their amount will be applied, provided that no defense mechanism is filed.
Article 39.- In the exercise of their sanctioning faculties, the Authorities must make known to the general public by the means they consider appropriate, the sanctions they impose for infringements of this Law, once such resolutions have become final or are res judicata, indicating exclusively the corporate name of the offending entity, the provision infringed, and the sanction imposed.
Article 40.- The Authorities, within the scope of their respective competencies, will sanction Entities and Compensation Chambers that refrain from supplying the information or documentation that each authority requests from them in terms of this Law or dispositions emanating from it, within the deadlines determined by them, with a fine of two hundred to two thousand days of salary, or when they present the information or documentation incorrectly or late.
Section V
(1) Sanctions that correspond to impose on the National Commission for the Protection and Defense of Users of Financial Services (1) Article 41.- The National Commission for the Protection and Defense of Users of Financial Services will sanction with a fine of two hundred to two thousand days of salary, Financial Entities that infringe any provision of this Law whose conduct does not compete to sanction another of the Authorities and that do not correspond to the infringing conduct of articles 42 and 43, as well as when they infringe the general character dispositions that the Commission itself issues in terms of this Law. (1) Article 42.- The National Commission for the Protection and Defense of Users of Financial Services will sanction with a fine of two thousand to five thousand days of salary, Financial Entities:

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I. Do not have in their branches, establishments, and on their electronic page on the worldwide "Internet" network, the updated information referred to in the first paragraph of article 7 of this Law, in the terms expressed in said provision.
II. Do not express annual ordinary and default interest rates, in accordance with article 9 of this Law.
(1) III. Use Adhesion Contract models that fail to comply with what is provided in article 11 of this Law or in the general character dispositions issued by the National Commission for the Protection and Defense of Users of Financial Services, which regulate Adhesion Contracts, or use with Clients any Adhesion Contract that has not been sent to said National Commission in terms of what is provided in the same article 11 of this Law. (1) IV. Disseminate advertising that fails to comply with what is provided in article 12 of this Law or the general character dispositions issued by the National Commission for the Protection and Defense of Users of Financial Services, which regulate advertising related to the characteristics of active, passive, and service operations. (1) V. Issue statements of account or operation receipts, that do not comply with what is provided in article 13 of this Law or do not adjust to the requirements established by the National Commission for the Protection and Defense of Users of Financial Services, through general character dispositions. (2) VI. Refrain from sending to the National Commission for the Protection and Defense of Users of Financial Services the models of Adhesion Contracts, in contravention of article 11 of this Regulation; (2) VII. Raise the credit limit in a revolving credit, loan, or financing associated with a card, that fails to comply with the formalities established in article 18 Bis 1 of this Law. (2) VIII. Contravene what is provided by article 18 Bis 4 of this Law, and (2) IX. Apply interest rates in contravention to what is pointed out by article 18 Bis 6. (8) Article 43.- The National Commission for the Protection and Defense of Users of Financial Services will sanction with a fine of four thousand to one hundred fifty thousand Units of Measure and Update, Financial Entities that:
I. Charge additional fees to their Clients for the termination of contracts they have celebrated, in contravention to what is pointed out in the second paragraph of article 7 of this Law.
(1) II. Do not modify Adhesion Contracts in accordance with what is ordered by the National Commission for the Protection and Defense of Users of Financial Services, in terms of article 11 of this Law.
(1) III. Do not obey the order of the National Commission for the Protection and Defense of Users of Financial Services to suspend the use of Adhesion Contracts, regarding new operations, in accordance with article 11 of this Law.
IV. Charge Commissions different from those agreed upon in Adhesion Contracts.
V. Do not suspend advertising in accordance with article 12 of this Law.
(1) VI. Do not modify statements of account in the terms indicated by the National Commission for the Protection and Defense of Users of Financial Services, when these do not adjust to what is provided in article 13 or in the general character dispositions emanating from said provision.
VII. Do not incorporate the CAT in advertising or in Adhesion Contracts or refrain from highlighting it in the respective documents in a clear, notorious, and indubitable manner.
VIII. Carry out discriminatory practices, in terms of article 17 of this Law.

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(2) IX. Grant credit, loan, or financing in contravention to what is provided by article 10 Bis, of this Law.
(2) X. Do not give timely response to the Client's request or do not deliver the detailed opinion and report, as well as the documentation or evidence referred to in article 23, fraction IV of this Law.
(2) XI. Charge commissions for overdraft or attempted overdraft in a revolving credit, loan, or financing associated with a card.
(6) XII. Condition the contracting of operations or services to the contracting of another operation or service, in contravention of what is provided in articles 18 Bis 5 and 23 Bis of this Law.
(1) In the cases referred to in fraction V of this article, the National Commission for the Protection and Defense of Users of Financial Services may, in addition to the imposition of the corresponding fine, request that the competent authorities in matters of radio, television, and other press media order the suspension of the dissemination of advertising. (5) Article 43 Bis.- The Commission will sanction with a fine of four thousand to twenty thousand days of salary, Financial Entities that do not obey the order to suspend the celebration of new operations, in accordance with article 13 Bis of this Law. (5) The officials, employees, or representatives of Financial Entities who are responsible for the infringements referred to in article 43 of this Law and the preceding paragraph, may be suspended, disqualified, or removed from their position by the Commission itself.
Section VI
Sanctions that correspond to impose on the Federal Consumer Protection Agency
Article 44.- The Federal Consumer Protection Agency will sanction with a fine of two hundred to two thousand days of salary, Commercial Entities that infringe any provision of this Law whose conduct does not compete to sanction another of the Authorities and that do not correspond to the infringing conduct indicated in the following paragraph, as well as when they infringe the general character dispositions that the Agency itself issues in terms of this Law.
Likewise, the Federal Consumer Protection Agency will sanction, within the scope of its competence, with a fine of:
I. Two thousand to five thousand days of salary, to Commercial Entities that:
a) Do not have in their branches, establishments, or on their electronic page on the worldwide "Internet" network, the updated information referred to in the first paragraph of article 7 of this Law, in the terms expressed in said provision. b) Do not express annual ordinary and default interest rates, in accordance with article 9 of this Law. c) Use Adhesion Contract models that fail to comply with what is provided in article 11 of this Law or in the general character dispositions issued by the Federal Consumer Protection Agency, which regulate Adhesion Contracts. d) Disseminate advertising that fails to comply with what is provided in article 12 of this Law or the general character dispositions issued by the Federal Consumer Protection Agency, which regulate advertising related to the characteristics of active, passive, and service operations. (1) e) Issue statements of account or operation receipts, that do not comply with what is provided in article 13 of this Law or do not adjust to the requirements established by the Federal Consumer Protection Agency, through general character dispositions.

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(2) f) Raise the credit limit in credit, loan, or financing operations associated with a revolving card that fail to comply with the formalities established in article 18 bis 1 of this Law.
(2) g) Contravene what is provided by article 18 Bis 4 of this Law, and (2) h) Apply interest rates in contravention to what is pointed out by article 18 Bis 6.
(8) II. Four thousand to one hundred fifty thousand Units of Measure and Update, to Commercial Entities that:
a) Charge additional fees to their Clients for the termination of contracts they have celebrated, in contravention to what is pointed out in the second paragraph of article 7 of this Law. b) Do not modify Adhesion Contracts in accordance with what is ordered by the Federal Consumer Protection Agency, in terms of article 11 of this Law. c) Do not obey the order of the Federal Consumer Protection Agency to suspend the use of Adhesion Contracts, regarding new operations, in accordance with article 11 of this Law. d) Charge Commissions different from those agreed upon in Adhesion Contracts. e) Do not suspend advertising in accordance with article 12 of this Law. f) Do not modify statements of account in the terms indicated by the Federal Consumer Protection Agency, when these do not adjust to what is provided in article 13 or in the general character dispositions emanating from said provision. g) Do not incorporate the CAT in advertising or in Adhesion Contracts or refrain from highlighting it in the respective documents in a clear, notorious, and indubitable manner. h) Carry out discriminatory practices, in terms of article 17 of this Law. i) Fail to comply with the general character dispositions issued by the Bank of Mexico in terms of article 4 of this Law. j) Refrain from observing the formula, components, and calculation methodology of the CAT, which the Bank of Mexico establishes through general character dispositions. k) Charge interest in terms different from what is provided in article 10, of this Law. (2) l) Grant credit, loan, or financing in contravention to what is provided by article 10 Bis, of this Law (2) m) Charge commissions for overdraft or attempted overdraft in a revolving credit, loan, or financing associated with a card, and (7) n) Condition the contracting of operations or services to the contracting of another operation or service, in contravention of what is provided in articles 18 Bis 5 and 23 Bis, of this Law. In the cases referred to in subsection e) of fraction II of this article, the Federal Consumer Protection Agency may, in addition to the imposition of the corresponding fine, request that the competent authorities in matters of radio, television, and other press media order the suspension of the dissemination of advertising. (3) Section VII (Repealed) (3) Article 45.- Repealed.

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(3) Article 46.- Repealed
Section VIII
(8) Sanctions that correspond to impose on the Bank of Mexico or the National Banking and Securities Commission
Article 47.- The Bank of Mexico will sanction with a fine of two hundred to two thousand days of salary, Financial Entities and Compensation Chambers that infringe any provision of this Law whose conduct does not compete to sanction another of the Authorities and that do not correspond to the infringing conduct indicated in the following article, as well as when they infringe the general character dispositions that the Bank itself issues in terms of this Law.
Article 48.- The Bank of Mexico will sanction with a fine of one thousand to five thousand days of salary, Financial Entities that:
I Refrain from registering Commissions, in accordance with the general character dispositions issued by the Bank itself, in infringement of article 6 of this Law.
II. Refrain from receiving checks subject to good collection, fund transfer orders, or debit instructions, in contravention to what is pointed out in article 16 of this Law or in the general character dispositions issued by the Bank of Mexico based on said article.
Article 49.- The Bank of Mexico will sanction with a fine of four thousand to twenty thousand days of salary, Financial Entities that:
I. Fail to comply with the general character dispositions issued by the Bank of Mexico in terms of article 4 of this Law.
II. Refrain from observing the formula, components, and calculation methodology of the CAT, which the Bank of Mexico establishes through general character dispositions.
III. Charge interest in terms different from what is provided in article 10, of this Law.
IV. Charge any penalty for the transfer of the total resources of workers who receive salary and other labor-related benefits, in contravention to article 18 of this Law or to the general character dispositions issued for this purpose by the Bank of Mexico.
(5) V. Fail to comply with the general character dispositions issued by the Bank of Mexico in terms of article 4 Bis of this Law.
(5) VI. Refrain from observing the formula, components, and calculation methodology of the GAT, which the Bank of Mexico establishes through general character dispositions.
(5) VII. Fail to comply with what is pointed out in articles 19 and 19 Bis, or in the general character dispositions issued by the Bank of Mexico in terms of such provisions.
(5) VIII. Refrain from providing the information referred to in subsection a) of fraction II of article 22 of this Law.
(5) Article 49 Bis.- The Bank of Mexico may, prior to the right to a hearing, suspend or partially limit the operations of Compensation Chambers that repeatedly fail to comply with what is provided in articles 19 and 19 Bis, or in the dispositions emanating from them.
(5) Likewise, the Bank of Mexico may revoke the authorizations mentioned in article 19 Bis, in case that what is provided in the articles indicated in the preceding paragraph or in the dispositions emanating from it is repeatedly and seriously infringed.

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(7) Article 49 Bis 1.- The National Banking and Securities Commission may conduct inspection visits to any of the Participants in Networks and require them, within the timeframes established by the Commission itself, all necessary information and documentation to verify compliance with this Law and the observance of general provisions emanating from it. To this end, the National Banking and Securities Commission may:
(7) a) Require any kind of information and documentation, and (7) b) Require the appearance of shareholders, partners, officials, representatives, and other employees of the Entity in question.
(7) Likewise, the National Banking and Securities Commission, to enforce its determinations, may request or employ, indistinctly, the following means of coercion:
(7) I. Reprimand with warning;
(7) II. Fine of 2,000 to 5,000 salary days;
(7) III. Additional fine of 100 salary days for each day the infraction persists; (7) IV. Temporary, partial, or total closure; and (7) V. Assistance of the public force.
(8) Article 49 Bis 2.- The National Banking and Securities Commission will sanction with a fine of 5,000 to 20,000 times the Unit of Measure and Update, the Entities and Participants in Networks that infringe any provision of this Law or the general provisions issued, jointly by the National Banking and Securities Commission and the Bank of Mexico, in terms of this Law in relation to the Payment Media Networks referred to in Article 4 Bis 3. In case of recidivism, the National Banking and Securities Commission may impose sanctions equivalent to up to double that provided in this paragraph. (7) Independently of the other sanctions it may impose, the National Banking and Securities Commission may issue observations and, where appropriate, order the adoption of measures aimed at correcting the irregular facts, acts, or omissions it has detected in the exercise of the functions it carries out in accordance with this Law. (9) In the event that the National Banking and Securities Commission or the Bank of Mexico, in the exercise of their respective powers, detects acts or omissions by the Entities or Participants in Networks that could imply infractions to the provisions applicable to them in terms of this Law, it will make the other authority aware. For the purposes of the foregoing, the National Banking and Securities Commission and the Bank of Mexico will enter into a collaboration agreement by which they establish the form and terms to make known what is provided in this paragraph, as well as the measures they adopt in the exercise of their attributes.
Chapter VI
Of the review appeal
Article 50.- Against the sanctions imposed by the Authorities, the review appeal provided for in the Federal Administrative Procedure Law will apply.
Chapter VII
Of the execution of fines

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(1) Article 51.- The fines imposed by the National Commission for the Protection and Defense of Users of Financial Services on credit institutions will be made effective by charging their amount to the account that the Bank of Mexico holds for said institutions. It will be the responsibility of the Tax Administration Service to make effective, in accordance with the Federal Tax Code, the fines imposed on Financial Entities other than credit institutions. (1) The Bank of Mexico will make the respective charges on the date that the National Commission for the Protection and Defense of Users of Financial Services requests it, since they are fines against which no means of defense is available. For such purposes, the affected credit institution will give written notice to the said Commission simultaneously with the exercise of any means of defense before the competent authority.
Article 52.- The collection of fines imposed by the National Commission for the Protection and Defense of Users of Financial Services and the Federal Consumer Protection Agency will be carried out by the Tax Administration Service in accordance with the Federal Tax Code.
Article 53.- For the execution of the fines imposed by the Bank of Mexico in terms of this Law, what is provided in articles 66 and 67 of the Bank of Mexico Law will be observed.
TRANSITORY PROVISIONS
(Decree by which the Law for Transparency and Orderly Regulation of Financial Services, published on January 26, 2004, is repealed, the Law for Transparency and Orderly Regulation of Financial Services is issued, and various provisions of the Credit Institutions Law, the Law for the Protection and Defense of Users of Financial Services, and the Law of the National Banking and Securities Commission are reformed, added to, and repealed, published in the Official Gazette of the Federation on June 15, 2007) FIRST ARTICLE.- This Decree will enter into force the day following its publication in the Official Gazette of the Federation. SECOND ARTICLE.- Infractions to the general provisions issued by the Bank of Mexico, in matters of annual total cost (CAT), credit cards, advertising, account statements, and contracts, committed by credit institutions and limited purpose financial societies, before the entry into force of this Law, will be sanctioned by the Bank itself in accordance with the laws in force at the time the cited infractions were committed. THIRD ARTICLE.- The Entities will have a period of up to one hundred eighty calendar days from the entry into force of this Decree, in order to adapt to its provisions. FOURTH ARTICLE.- For the purposes of what is provided in Article 48 Bis 2 of the Credit Institutions Law, the Bank of Mexico will have thirty days from the entry into force of this Decree to issue the general provisions. FIFTH ARTICLE.- Upon the entry into force of this Decree, the Law for Transparency and Orderly Regulation of Financial Services published in the Official Gazette of the Federation on January 26, 2004, will be repealed. SIXTH ARTICLE.- Upon the entry into force of this Decree, the following legal provisions are repealed from the Law for Transparency and Promotion of Competition in Secured Credit:
I. Articles 3, fraction I, 10, and 16 first paragraph.
II. Article 4. Without prejudice to the foregoing, the General Rules issued by the Secretariat of Finance and Public Credit under said article will continue in force, with respect to the Entity in question, until such time as the authorities that are competent, in accordance with what is stated in Article 12 of this Law for Transparency and Orderly Regulation of Financial Services, issue in the scope of their respective competence, the general provisions in matters of advertising provided for by the latter Law.
III. Article 8. Without prejudice to the foregoing, the General Rules issued by the Secretariat of Finance and Public Credit under said article will continue in force, with respect to the Entity in question, until such time as the authorities that are competent, in accordance with what is stated in Article 11 of this Law for Transparency and Orderly Regulation of Financial Services, issue in the scope of their respective competence, the general provisions in matters of adhesion contracts provided for by the latter Law, understanding that such provisions will contemplate the minimum content indicated in fractions I to VI of said Article 8 for Secured Credit for Housing.
IV. Article 12. Without prejudice to the foregoing, when the authorities that are competent, in accordance with what is stated in Article 13 of this Law for Transparency and Orderly Regulation of Financial Services, issue in the scope of their respective competence, the general provisions in matters of account statements provided for by the latter Law, they must include the calculation of the Annual Total Cost corresponding to the rest of the term of the Secured Credit for Housing.
SEVENTH ARTICLE.- Upon the entry into force of this Decree, articles 87-I, fraction II; 87-L, second paragraph, and 87-M, fraction IV, are repealed from the General Law of Organizations and Auxiliary Credit Activities.
EIGHTH ARTICLE.- The general provisions that the Bank of Mexico has issued in matters of advertising, account statements, or adhesion contracts directed at credit institutions or limited purpose financial societies will remain in force until such time as the general provisions that, in accordance with what is provided in this instrument, are issued by the National Banking and Securities Commission regarding the mentioned topics enter into force. Mexico, D.F., April 26, 2007.- Sen. Manlio Fabio Beltrones Rivera, President.- Dip. Jorge Zermeño Infante, President.- Sen. Renan Cleominio Zoreda Novelo, Secretary.- Dip. Antonio Xavier Lopez Adame, Secretary.- Signatures. In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on the twelfth day of the month of June of two thousand seven.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Francisco Javier Ramírez Acuña.- Signature. TRANSITORY PROVISIONS (Decree by which various provisions of the Credit Institutions Law, the Law for Transparency and Orderly Regulation of Financial Services, and the Law for the Protection and Defense of Users of Financial Services are reformed, added to, and repealed, published in the Official Gazette of the Federation on June 25, 2009) FIRST ARTICLE.- This Decree will enter into force the day following its publication in the Official Gazette of the Federation. SECOND ARTICLE.- The new attributions of the National Commission for the Protection and Defense of Users of Financial Services to issue general provisions provided for in the reforms and additions to the Credit Institutions Law and the Law for Transparency and Orderly Regulation of Financial Services provided for in this Decree will enter into force one hundred eighty calendar days following their publication in the Official Gazette of the Federation. THIRD ARTICLE.- The reforms, additions, and repeals to the Law for the Protection and Defense of Users of Financial Services will enter into force two hundred seventy calendar days following their publication in the Official Gazette of the Federation.

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FOURTH ARTICLE.- The National Commission for the Protection and Defense of Users of Financial Services must carry out the necessary management to have an organizational structure that allows it to comply with what is provided by this Decree within the deadlines for the start of its validity.
Infractions committed prior to the date of entry into force of this Decree will be sanctioned in accordance with the Law in force at the time the cited infractions or crimes were committed.
In administrative proceedings that are pending, the interested party may opt for their continuation in accordance with the procedure in force during their initiation or for the application of the provisions applicable to administrative proceedings stipulated by this Decree.
FIFTH ARTICLE.- Until the National Commission for the Protection and Defense of Users of Financial Services issues the general provisions referred to in the reforms contained in this Decree, those issued prior to its validity will continue to apply in the corresponding matters, insofar as they do not oppose this Decree.
When the provisions referred to in this article are issued, those that they replace or that remain repealed will be expressly indicated.
SIXTH ARTICLE.- Fraction XXXVII of Article 4 of the Law of the National Banking and Securities Commission is repealed.
Mexico, D.F., April 30, 2009.- Sen. Gustavo Enrique Madero Muñoz, President.- Dip. César Horacio Duarte Jáquez, President.- Sen. Adrian Rivera Perez, Secretary.- Dip. Jose Manuel del Rio Virgen, Secretary.- Signatures.
In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on twenty-three of June of two thousand nine.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Lic. Fernando Francisco Gómez Mont Urueta.- Signature. TRANSITORY PROVISIONS (Decree by which various provisions in the Law for Transparency and Orderly Regulation of Financial Services, the Credit Institutions Law, the Law to Regulate Credit Information Societies, the Law for Transparency and Promotion of Competition in Secured Credit, and the Bank of Mexico Law are reformed, added to, and repealed, Published in the Official Gazette of the Federation on May 25, 2010) First.- This Decree will enter into force the day following its publication in the Official Gazette of the Federation. Second.- The Bank of Mexico will issue the general provisions referred to in Article 4 Bis of the Law for Transparency and Orderly Regulation of Financial Services within a period of sixty calendar days counted from the day following the entry into force of this Decree. Third.- The Entities will have a period of ninety calendar days, counted from the day following the entry into force of this Decree, to comply with what is provided by Article 4 Bis 1 of the Law for Transparency and Orderly Regulation of Financial Services and 48 Bis 2 of the Credit Institutions Law in matters of basic credit card product. Fourth.- Persons who operated before the entry into force of this Decree as Clearing Houses in terms of what is provided by Articles 19 and 19 Bis of the Law for Transparency and Orderly Regulation of Financial Services, will have a period of ninety calendar days counted from the date on which the general provisions issued under the cited provisions enter into force, to present the respective authorization request. Fifth.- The Societies will have a period of one hundred eighty calendar days counted from the day following the entry into force of this Decree to comply with the obligations referred to in Articles 2 and 36 Bis of the Law to Regulate Credit Information Societies. Credit Information Societies will have a period of up to one hundred eighty calendar days from the entry into force of this Decree to present to the Commission the agreement mentioned in Article 36 of the said Law. Credit information societies must obtain authorization from the National Banking and Securities Commission regarding the tariffs that said societies must offer to their Users for credit reports, in terms of Article 36 Bis of the Law to Regulate Credit Information Societies within the one hundred eighty calendar days following the entry into force of this Decree. Sixth.- For the purposes of Article 20, the Societies must eliminate, within a period not greater than 90 calendar days, from their
databases the records whose origin was not informed by the Users prior to this reform. For re-registration, Users must specify the dates of origin of the credit and of its first default, the latter cannot be greater than 72 months. Mexico, D.F., February 11, 2010.- Sen. Carlos Navarrete Ruiz, President.- Dip. Francisco Javier Ramirez Acuña, President.- Sen. Martha Leticia Sosa Govea, Secretary.- Dip. Carlos Samuel Moreno Teran, Secretary.- Signatures. In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on fourteen of May of two thousand ten.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Lic. Fernando Francisco Gómez Mont Urueta.- Signature. Transitory Provisions (Decree by which various provisions in financial matters are reformed, added to, and repealed, and the Law to Regulate Financial Groupings is issued, published in the Official Gazette of the Federation on January 10, 2014) FIFTH ARTICLE.- In relation to the modifications referred to in Articles First, Second, Third, and Fourth of this Decree, the following will apply:
I. The Federal Economic Competition Commission will have a period of one hundred eighty calendar days counted from the entry into force of this Decree to carry out an investigation on the competition conditions in the financial system and its markets, for which it must hear the non-binding opinion of the Secretariat of Finance and Public Credit.
As a result of said investigation, the Federal Economic Competition Commission may, if appropriate, formulate recommendations to financial authorities to improve competition in this system and its markets and exercise the other attributions conferred by the Federal Economic Competition Law in order to avoid monopolistic practices, concentrations, and other restrictions on the efficient functioning of markets in this system, including, as appropriate, ordering measures to eliminate barriers to competition and free concurrence; ordering the divestiture of assets, rights, partnership shares, or shares of economic agents, in the necessary proportions to eliminate anti-competitive effects, and the rest of the measures authorized by the Constitution and the law on the matter.
II. The obligations derived from this Decree incumbent on Financial Institutions will enter into force ninety calendar days following its entry into force.

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III. The National Commission for the Protection and Defense of Users of Financial Services to issue the general provisions referred to in this Decree, will have a period of three hundred sixty-five calendar days following the entry into force of this Decree.
IV. The National Commission for the Protection and Defense of Users of Financial Services will have the period cited in the previous transitory provision to issue the guidelines referred to in Article 84 Bis of the Law for the Protection and Defense of Users of Financial Services and put the Arbitral System in Financial Matters into operation.
V. The National Commission for the Protection and Defense of Users of Financial Services will have a period of one hundred eighty calendar days to put the Bureau of Financial Entities into operation, counted from the entry into force of this Decree.
In addition to what is stipulated by Article 8o. Bis of the Law for the Protection and Defense of Users of Financial Services regarding the information of the Bureau of Financial Entities; it must include as a minimum the information related to complaints, inquiries, opinions, administrative sanctions, as well as, the elimination or modification of abusive clauses, whose identification must be by products or services.
VI. The National Banking and Securities Commission, within forty-five calendar days following the entry into force of this Decree, will establish a program for the identification, review, and inspection of Payment Media Networks currently in operation.
VII. The National Banking and Securities Commission and the Bank of Mexico, jointly, will issue the general provisions referred to in Article 4 Bis 3 of the Law for Transparency and Orderly Regulation of Financial Services within sixty calendar days following the entry into force of this Decree. Upon expiration of said period, the President of the National Banking and Securities Commission, and the Governor of the Bank of Mexico, will appear jointly before the Chamber of Deputies to report on the exercise of this attribution, and they must also appear at six and twelve months following to report on the evolution of the payment network market and on the application of the aforementioned provisions.
VIII. The Bank of Mexico will issue the general provisions referred to in Article 19 Bis of the Law for Transparency and Orderly Regulation of Financial Services within sixty calendar days following the entry into force of this Decree.
IX. The Chamber of Deputies will seek to allocate resources in the budget of the National Commission for the Protection and Defense of Users of Financial Services for the development of the different financial education and culture programs it exercises.
TRANSITORY PROVISION OF THE DECREE
(Decree by which various provisions in financial matters are reformed, added to, and repealed, and the Law to Regulate Financial Groupings is issued, published in the Official Gazette of the Federation on January 10, 2014) UNIQUE.- This Decree will enter into force the day following its publication in the Official Gazette of the Federation, except for what is provided in ARTICLES TWENTY-FIFTH, fraction I; THIRTIETH, fractions IV and VI; FORTIETH, fractions I and II; and FIFTIETH, fractions I and II, which will enter into force on the dates established in said provisions. Mexico, D.F., November 26, 2013.- Dip. Ricardo Anaya Cortes, President.- Sen. Raúl Cervantes Andrade, President.- Dip. Javier Orozco Gomez, Secretary.- Sen. María Elena Barrera Tapia, Secretary.- Signatures. In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on nine of January of two

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For internal use one thousand fourteen.- Enrique Peña Nieto.- Rubric.- The Secretary of the Interior, Miguel Ángel Osorio Chong.- Rubric.
TRANSITORY
(Decree by which the Law for the Regulation of Financial Technology Institutions is issued and various provisions of the Law of Credit Institutions, the Securities Market Law, the General Law of Organizations and Auxiliary Credit Activities, the Law for the Transparency and Orderly Regulation of Financial Services, the Law for the Regulation of Credit Information Societies, the Law for the Protection and Defense of Users of Financial Services, the Law for the Regulation of Financial Groups, the Law of the National Banking and Securities Commission, and the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin, published in the Official Gazette of the Federation on March 9, 2018) SOLE.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation, unless otherwise provided in the Transitory Provisions of this Decree. Mexico City, March 1, 2018.- Sen. Ernesto Cordero Arroyo, President.- Dip. Edgar Romo García, President.- Sen. Rosa Adriana Díaz Lizama, Secretary.- Dip. Ana Guadalupe Perea Santos, Secretary.- Rubrics. In compliance with what is established in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree in the municipality of Acapulco de Juárez, state of Guerrero, on March 8, two thousand eighteen.- Enrique Peña Nieto.- Rubric.- The Secretary of the Interior, Dr. Jesús Alfonso Navarrete Prida.- Rubric. TRANSITORY PROVISIONS OF THE DECREE (Decree by which various financial laws are reformed, added to, and repealed in matters of administrative procedure published in the Official Gazette of the Federation on January 24, 2024) First.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation. Second.- Administrative sanctioning procedures that, as of the date of entry into force of this Decree, have been initiated shall be continued until their conclusion, in accordance with the procedure in effect at the time of notification to the alleged infringer. Third.- Resolutions that put an end to revocation administrative procedures that had been initiated through the notification of the act by which the right to a hearing is granted, before the entry into force of this Decree, shall be continued until their conclusion, in accordance with the procedure in effect at the time of notification to the corresponding institution or entity. Fourth.- The processing and resolution of sanctioning procedures that, as of the date of entry into force of this Decree, the Bank of Mexico has initiated shall be governed by what is established in the Supervision Rules, Self-Correction Programs, and Sanctioning Procedure, in effect on the same date of entry into force of this Decree.

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STATEMENT OF REASONS
(Decree of June 15, 2007)
The financial sector in Mexico has achieved unprecedented strength in contemporary history, surpassing the backlog it had carried since the last banking crisis, in December 1994, all of this as a result of economic stability and the atmosphere of certainty that prevails in the country.
According to figures from the National Banking and Securities Commission, at the end of 2005 the multiple banking sector generated profits of almost 48 billion pesos, 83% more than a year earlier, and 256% (3.5 times) higher than those reported at the end of 2000.
In just the first half of 2006, the profits of the multiple banking sector totaled 29,502 million pesos, almost 18% more than in the first half of 2005, and 16.25 more than those obtained from January to December 2004.
These results are a clear reflection of the profitability and solidity of the banking sector, and should also account for more and better services, at competitive and more accessible prices for users, as well as a more determined effort to support and finance the private sector.
However, contrary to what the operating results of the multiple banking sector suggest, its success is based on the concentration of operations in consumer credit, in more and higher commissions for the services it provides, and excessive interest rates, which do not reflect the decrease in the cost of deposits and in the reference interest rates of the market, nor do they translate into better services for users. The total credit portfolio has been steadily increasing since 2002, reaching a total balance of 1 trillion 256 billion 520 million pesos by June 2006, which represents a nominal growth of 8.2% compared to the end of 2005, that is, in just six months, mainly due to commercial, consumer, and housing credit categories. Of the total portfolio outstanding as of June 2006, 37% were commercial credits, 24.36% consumer credits, and 16.26% housing credits. However, the dynamism of the categories that make up the credit portfolio shows very important differences. For example, while credit to businesses and individuals reported an increase of 6.2% from December 2004 to the end of 2005, consumer credit increased in real terms by 46.5% in that same period, and housing credit increased by 32.1%. Consumer credit has sustained notable growth over the last 69 months, in what is its longest expansion period in modern history. In this way, consumer credit has proven to be extremely profitable, given that active interest rates remain at excessive levels, to the benefit of the banking sector, with levels above 40%, which implies a differential compared to the average cost of deposits of up to 36 percentage points. In particular, credit cards are the product that has been the subject of the most aggressive promotional campaigns, since all banks grant them with minimal requirements, and in many cases without adequate risk assessment, which has led to the overdue portfolio concentrating mainly in this category. Contrary to the downward trend in reference interest rates in this sexennium, which has been reflected in historical lows close to 4% in the 28-day CETES interest rate, the rates corresponding to the cards of the main credit issuers have registered significant increases. Additionally, to interest income are added the commissions charged for the use of credit and debit cards, account management and transfers, such as the use of checks, cash withdrawal, balance inquiries, payment with card at point-of-sale terminals, among many others. Along with consumer credit, and largely derived from it, the collection of commissions has followed an upward trend, which has allowed banks to finance, on average, more than 50% of their

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At the end of 2005, net commission income totaled 45,101 million pesos, a real increase of 9.8% compared to 2004, mainly due to increases in commissions on affiliated businesses, credit card annual fees, and account management, becoming the second source of income after the financial margin.
The main banking institutions, which concentrate 90% of the total commissions charged, have registered a significant increase in income from this category between 1998 and 2005. Thus, in that period Banorte reported a growth of 674%, Inbursa of 347%, HSBC of 217%, BBVA Bancomer of 214%, Banamex of 161%, Santander Serfin of 158%, and Scotiabank Inverlat of 100%. The case of Bancomer and Banamex, which together concentrate almost 52% of the gross commission income charged in 2005, is also representative of the high concentration of banking services to the detriment of competition, particularly in certain relevant markets such as consumer credits and checking accounts. The Association of Banks of Mexico (ABM) has defended the increase in commissions under the argument that it is a worldwide phenomenon, and maintains that for a comparative analysis of commissions, the characteristics of the product, customer habits, regulation and market characteristics, and business strategy must be considered. However, an analysis by the Economic Commission for Latin America (ECLAC) demonstrates that while it is true that the increase in commissions is an international phenomenon, in other countries this trend has been accompanied by a significant decrease in interest income, which has not happened in Mexico. Thus, in addition to the growing income from commissions, which constitute about 50% of the financial margin, in Mexico there persists an average differential of 30 percentage points between active and passive rates on credit cards, which invalidates the justification made by the ABM for the excessive charging of commissions. This problem has been recognized and widely debated in our country by financial authorities such as the Ministry of Finance, CONDUSEF, and the Bank of Mexico, as well as by the Federal Economic Competition Commission, which have repeatedly pointed out the disproportionate level of commissions for banking services to the detriment of the consumer. At the same time, Congress has proposed various initiatives to address the problem, which have not yet succeeded. We must recognize that there have been important advances through the Law for the Transparency and Orderly Regulation of Financial Services, and through the provisions issued by the Bank of Mexico regarding advertising on the costs, fees, and interest rates of the different products offered to the public. This has allowed for greater competition among banks, slightly halting the escalation in commissions and interest rates, given that the user now has a greater possibility of comparing the products offered by banks, to thus make a better decision on which offers better services at lower costs. However, the problem persists, mainly due to restrictions on competition, as has been pointed out by COFECO, which has even recently published a specific study on the high commissions charged by AFOREs. For all the above, in the present initiative it is proposed to reform, on the one hand, the
Law for the Transparency and Orderly Regulation of Financial Services and the Bank of Mexico Law, to clearly establish that it will be the Bank of Mexico that defines the procedure for determining commissions for banking services. On the other hand, it is also proposed to reform the Law of Credit Institutions, so that CONDUSEF can directly request COFECO to evaluate the competitive conditions of the banking sector, and thus no longer have to make the request through the Bank of Mexico. The National Banking and Securities Commission is also added to have this same authority. In the reform to the Law of Credit Institutions, we also propose that if COFECO determines that competitive conditions do not exist, the Bank of Mexico shall be empowered to establish the maximum permitted commissions and fees while such situation prevails. International experience shows that countries such as the United Kingdom, Australia, and others in the European Union have decisively promoted regulations in this sense, requiring credit institutions to reduce commissions. The current market conditions fully favor the banking sector, leaving the consumer at a disadvantage, in which case, by express mandate of the third paragraph of Article 28 of the Constitution, it is our duty to legislate to protect their legitimate interests. Thus, for all the above, I submit to the consideration of this Sovereignty, the following Initiative with the project of:
STATEMENT OF REASONS
(Decree of June 25, 2009)
Since the economic crisis of 1995, the Legislative Branch has approved various reforms implemented in the Mexican financial system to strengthen and adequately regulate the securities market sector, the specialized financial intermediaries sector, and above all, it has made very important reforms to the banking regulatory framework, which have proven their usefulness by having served to considerably mitigate the effects of the great financial crisis the world is experiencing, with respect to financial intermediaries operating in our country. Additionally, the Legislative Branch has sought to protect the interests of the clientele of financial intermediaries by issuing regulations such as the new Law for the Transparency and Orderly Regulation of Financial Services, and reforms to the Law of Credit Institutions to incorporate the basic banking product, which allows a large part of the population to access financial services at low cost. The atypical financial situation the world is currently experiencing imposes new challenges when issuing financial norms, especially with regard to the protection of users of financial services. With respect to the work of the Legislative Branch in these times of global financial crisis, it is imperative to issue norms that protect clients of financial institutions from the predatory practices of various intermediaries, in protection of their particular interests and of the financial system itself. One of the immediate problems that has been widely discussed is that of the overdue portfolio in credits granted through credit cards, since this type of credit is the main component of the consumer credit portfolio in commercial banking. At the end of the first half of 2008, financing granted by banks through this product stood at 315 billion pesos, which represents a real annual increase of 15.6 compared to the figures registered at the end of the first half of 2007. Within this portfolio, the outstanding portfolio registered a real annual variation of 13.0%, while the overdue portfolio has shown a real annual increase of 55.8%. Given this financial landscape, it is necessary to take legislative measures to reverse this trend before it damages the financial system and harms the domestic economy of cardholders. Likewise, norms are required to prevent bad practices by Entities that provide financial services from the commercial sphere or the financial sector that seriously harm users of financial services, and which therefore inhibit the population from accessing the regulated and supervised sector to access other dangerous sources of financing. It is for this reason that the present reform establishes a combined strategy to promote and protect the rights of users of financial services against the harmful practices of Financial Entities, which has the following aspects:

Strengthening of norms in matters of transparency and protection of users of financial services, grouped into four categories:
I. Information Disclosure. Measures related to addressing problems of asymmetry and low quality in information.
II. Credit Card. Measures aimed at guaranteeing access to clear and precise information, regarding commissions and interest.
III. Good Practices. Measures aimed at preventing consumer over-indebtedness.
IV. Transaction Costs. Measures to foster competition by reducing the costs of switching from one financial institution to another.
Strengthening of the functions of CONDUSEF, namely:
I. Preventive Functions, through the strengthening of those aimed at preventing negative conduct against the consumer, such as:
a) Information, education for consumption and guidance b) Supervision and monitoring of compliance with provisions that have a direct impact on the user of financial services.
II. Conciliatory Functions, through the strengthening of its attributions in the conciliatory and arbitral procedure in favor of the user of financial services.
III. Corrective Functions, through the strengthening of its attributions to correct negative conduct to the detriment of the consumer.
It should be mentioned that the present initiative largely resumes the results of the conference on Financial Education, Consumer Protection and Competition that took place in the city of Querétaro on July 11, 2008.
From what was expressed at that conference, the speakers agreed on the importance of fostering regulation in matters of consumer protection, particularly in matters of transparency in information in account statements, adhesion contracts, and advertising.
Likewise, the importance of measures that foster competition was highlighted, such as the elimination of the costs that represent for a user to switch from a financial institution and guarantee non-discriminatory access to infrastructure for all credit institutions.
In addition to the results of the conference on Financial Education, Consumer Protection and Competition, various practices that have been implemented in several countries that would be useful for the better development of the Mexican financial system were mentioned.
It is for this reason that the initiative presented deals with the topics detailed below:
I. Information Disclosure.
The issue of information disclosure has already been addressed in various regulations such as the Law for the Transparency and Orderly Regulation of Financial Services. Nevertheless, it is very important to homogenize the information and make it accessible to clients of financial institutions in deposit and credit operations, for which the measures exposed below are proposed. It is proposed to impose the obligation on financial institutions to show in account statements the charges accumulated during the year, derived from the payment of interest and commissions. Additionally, account statements for both passive and active operations shall incorporate a standardized box format for all Entities containing the most important elements of the operation in question, such as commissions charged, interest charged or paid, as applicable, balances, credit limits, and warnings that allow illustrating the user of such services about the risks in case of delayed payments, making only minimum payments, as well as annualized information regarding the payment of commissions and interest. On the other hand, it is important to establish by law that account statements incorporate warnings about the consequences of making late payments, as well as the risks and costs of making only the minimum payment. Likewise, a standardized cover sheet for adhesion contracts for credit operations must be established, which contains the key elements that allow the user to immediately compare the services of the same type offered by various institutions, such as the interest rate, the CAT, commissions, and warnings regarding rates or commissions that represent a penalty for the client, as well as the circumstances in which they would be applicable, and a box incorporating information regarding guarantees granted by the borrower or a third party. In this sense, it must be mandatory that when providing information about a financial service to a client in a branch, a copy of at least the cover sheet of the adhesion contract must be delivered. With respect to deposit operations, cover sheet formats for contracts will be prepared, with the disclosure elements that include the consequences of not maintaining a minimum balance in the account through payment methods such as debit cards. Additionally, in the account statement and contract cover sheet formats, clear fields will be established to distinguish commissions, as well as their impact on a specific credit line or deposit operation. It is proposed to incorporate into the credit operation account statement the warning legend regarding delay or non-compliance in payments, to generate awareness that it will negatively affect their credit history. Likewise, establish that whoever offers credit cards with different interest rates or credit limits must clearly publish the conditions that the credit applicant must meet for each type of advertised product. It is proposed that when a loan requires a guarantor, the following legend must be
incorporated in a visible manner to the naked eye in the contract in the space where it must be signed as determined in secondary rules, in order to warn of the risks incurred. It must also be established that Entities, prior to contracting their products, maintain standardized formats with relevant information for comparison purposes available to the public, whose period of validity will be determined by Law, and the format will have the characteristics determined by CONDUSEF in rules.
II. Credit Card
The issue of credit card regulation is one of the most relevant, for which it is proposed the adoption of various norms in protection of users of financial services such as granting a reasonable time to pay them, which implies that if the payment deadline falls on a weekend or other non-working day, payment is allowed on the next working day.

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Likewise, it is important to prohibit the practice whereby Entities charge their Clients on credit cards based on balances from days prior to the most recent statement closing date. In this way, abusive practices on the part of the Entities will be avoided.

In the event that a user pays an amount greater than the minimum on a credit card, there must be the possibility of applying the payment in the manner that most benefits the user, such as in the case where differentiated rates exist, for example in an installment plan with no interest, where the excess payment falls to amortize the part of the credit that does generate interest.

Likewise, it is intended to establish the procedure to be followed in the event that a user of financial services, who has a credit opening contract in a current account with a financial institution, objects to a payment.

A rule is incorporated that establishes that on credit cards, if the interest rate is increased, it cannot be applied to charges made prior to said increase.

Likewise, all charges for overdrafts on these instruments will be prohibited, and the CONDUSEF will have the authority to regulate minimum payments on each type of credit card through general rules.

III. Good Practices

In the area we here call "good practices," a series of rules are incorporated that tend directly to foster an equitable relationship between the user of financial services and the Entities with which such services are contracted, as well as to prevent excessive indebtedness by borrowers that could harm their family economy.

Therefore, it is proposed that there be a mechanism that clearly leaves the consumer with the limit to which they can incur debt, through the inclusion in relevant documents of a legend that indicates, as a traffic light, that if their credit commitments exceed the equivalent of two months of their income, they should be very careful with their indebtedness, and if they exceed the equivalent of four months of income, they may be in a very serious situation.

On the other hand, consumers must be aware of the consequences of providing false information to obtain credit, so this information must be evidenced, for which credit applications in standard form contracts must contain a legend warning borrowers of the civil or criminal penalties to which they may be subject in such cases.

Additionally, it will be prohibited and severe penalties will be imposed on anyone who provides for adjustments to interest rates on amounts already disbursed.

Likewise, the obligation must be established that potential borrowers or their joint obligors, prior to the formalization of a contract, sign a separate document containing important recommendations regarding their rights.

It is proposed to expressly prohibit the granting of credit to minors, as well as the sending of any information to them related to the granting of credit.

It is also proposed to prohibit the delivery of pre-approved credit cards without them being requested.

It should be noted that the power to cancel a consumer credit contract before its settlement must be established, in which case the relationship regarding the repayment of the credit and payment of the interest rate will remain in force.

Additionally, it will be established in Law that in the contracting of credits, the institution must have life insurance and, where applicable, damage insurance, and that the cost of said insurance be absorbed by the institution itself, reflected in the interest rate.

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The credit grantor in a credit card must be prohibited from raising the credit limit without the user's request.

Likewise, it must be established that when insurance is offered for the use of a Credit Card, in the application format, the cost of the insurance must be provided separately and indicated, above the user's signature, that the contracting of the insurance is optional.

On the other hand, it is proposed to establish restrictions on the hours in which Entities make offers to Clients, either directly or by telephone, at their workplace.

It is proposed to establish a grace period for the user of financial services to cancel an operation within ten business days following the signing of a contract without incurring a penalty. For these purposes, the financial institution must notify the contracting user of this right so that the stated grace period begins to run.

Also, the scope of the simplified clarification process provided for in Article 23 of the Law on Transparency and Regulation of Financial Services must be expanded, so that it applies to all types of operations.

IV. Transaction Costs

To foster competition, the first step is the reduction of transaction costs, that is, the costs incurred by a client for moving their operations from one institution to another. In this sense, it is proposed first to establish rules that facilitate the transfer of payroll deposits.

Likewise, it is proposed to relax the requirements for a client to change banks, for which a user of financial services can make the change in a package that includes various products from the same Entity, such as their credits and deposit operations. It is proposed to simplify procedures, so that with written notice to the originating and receiving entities, the receiving entity can carry out the procedures with the originating entity to carry out the movement.

In this sense, regulations on the "portability" of financial services will be incorporated into the Credit Institutions Law, containing measures to carry out the transfer of financial services.

The efficiency in the procedures for changing financial services from one company to another can provide guidelines for having something similar to the "portability" of said services, which will foster competition among providers of financial services.

It is established that credit institutions cannot charge commissions or fees for the cancellation of active and passive operations; in this sense, it is important to highlight that Banks do not present monetary losses when carrying out these cancellations since the costs of the operation were absorbed during the contractual relationship.

Strengthening the Functions of CONDUSEF

The Law for the Protection and Defense of Users of Financial Services, published in the Official Gazette of the Federation on January 18, 1999, was a significant step taken by the State to create the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF).

Since the date of entry into force of the Law for the Protection and Defense of Users of Financial Services, thousands of users of financial services have benefited, although the effectiveness expected at the time of the publication of the law has not yet been achieved.

This legal body has been modified on successive occasions by the Honorable Congress of the Union as the needs of the sector have advanced, together with the development of other legal bodies such as the Credit Institutions Law and the Law on Transparency and Regulation of Financial Services.

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These legal instruments have allowed, on the one hand, to achieve greater results in benefit of users of financial services, and on the other hand, work has been done with financial institutions to promote better practices.

This effort made by CONDUSEF represents a fundamental advance in its performance; however, the attributes currently held by said Commission are insufficient, since the lack of attributes that allow it to regulate and supervise financial entities in benefit of users of financial services causes its scope of effectiveness to be limited.

The fact that CONDUSEF does not have the authority to sanction non-compliance with financial regulations linked to the user of financial services (Transparency, standard form contracts, misleading advertising, among others), results in the inability to effectively procure equity in the relationship between users and financial institutions.

In this context, adjustments are proposed to both the Credit Institutions Law, the Law on Transparency and Regulation of Financial Services, as well as to the Law for the Protection and Defense of Users of Financial Services, in order to endow CONDUSEF with greater attributes, and thus grant greater benefits in favor of users of financial services and stimulate greater growth of the financial sector, as referred to below.

1.- Reforms to the Credit Institutions Law

It is necessary to reform the Credit Institutions Law, as it is intended to responsibly expand the scope of action of CONDUSEF.

The transfer of attributes from the CNBV to supervise the transfer of savers' resources to a global account and their prescription in favor of public beneficence when accounts have had no movement is proposed.

Also, the transfer from the CNBV of the attributes to issue norms on matter of sound commercial uses in the offering and provision of financial services is planned, the above in benefit of users of said services.

Additionally, the transfer of attributes from the CNBV for the issuance of norms on matter of accounts that banks open to provide assistance for catastrophes is proposed.

The transfer of attributes from the SHCP on matter of authorization of the use of reserved words (bank and similar) in denominations and establishments of persons who do not have authorization, as well as the creation of a registry of said authorizations, since these norms are established in protection of the general public, is proposed.

It is necessary that CONDUSEF has attributes to impose administrative fines for infractions to the Credit Institutions Law, to the provisions of the SHCP and those issued by the Commission itself, since it currently lacks such faculty.

Also, it is planned that CONDUSEF can report to the Federal Competition Commission, when in exercise of its faculties it detects any of the practices mentioned in Article 119 of the Credit Institutions Law. This with the aim of avoiding monopolistic practices to the detriment of users.

A very important point is that the proposed reform will allow CONDUSEF to supervise and monitor in the scope of its competence, the multiple banking institutions regulated by the Credit Institutions Law.

It is worth highlighting that, with the reforms to this Law, CONDUSEF will be able to carry out visits to credit institutions, so that they adjust to the provisions issued by the Commission itself, which will allow financial institutions to make the appropriate corrections, if any were found in the visits.

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Finally, CONDUSEF will be able to investigate facts, acts or omissions for violations of the Credit Institutions Law and other provisions derived from it, in the scope of its competence, which will bring greater benefit to users of financial services.

2.- Reforms to the Law on Transparency and Regulation of Financial Services

On June 15, 2007, the new Law on Transparency and Regulation of Financial Services was published in the Official Gazette of the Federation.

The reform proposed today grants greater legal certainty to users of financial services, as regulatory, supervisory, and sanctioning attributes in said Law will be granted from the CNBV to CONDUSEF. The above, since the Law on Transparency and Regulation of Financial Services contains norms of great interest to users of financial services, so it is more congruent that they fall under the scope of action of CONDUSEF rather than the CNBV.

On the other hand, the registry of commissions will be made not only in the Bank of Mexico, but also in CONDUSEF, in order to give said registry a greater focus on the protection of users of financial services.

Likewise, when the Bank of Mexico issues norms relative to the calculation of the Total Annual Cost (CAT), it must listen to the opinion of the Bank of Mexico.

The above will undoubtedly result in greater benefits for users of financial services and will give them greater legal certainty in the celebration of operations with credit institutions.

3.- Reforms to the Law for the Protection and Defense of Users of Financial Services

First, it is proposed to reform Article 11 of the cited Law, in order for CONDUSEF to procure and represent the interests of Users, in controversies between them and Financial Institutions.

Likewise, by reforming the cited article, it is intended to promote and protect the rights of the User, as well as to apply the necessary measures to promote equity and legal certainty in the relationships between Financial Institutions and Users.

It is worth mentioning that it is necessary for CONDUSEF to be able to report to the Public Ministry when it learns of facts that could constitute crimes in general, and to the Secretariat of Finance and Public Credit when they are crimes typified in financial laws. Likewise, it can report to competent authorities, acts that constitute administrative violations.

It is important to highlight that CONDUSEF must be endowed with attributes to be able to monitor and verify compliance with the provisions contained in the Credit Institutions Law and in other financial laws in the scope of its competence, since this would avoid bad practices in the sector.

On the other hand, and given the experience of the Federal Consumer Protection Agency (PROFECO), several of the attributes with which this agency is endowed were taken up to incorporate them into the Law for the Protection and Defense of Users of Financial Services. The above so that CONDUSEF achieves greater effectiveness in benefit of users of financial services.

Now well, notwithstanding that the National Banking and Securities Commission issues rules for the adequate performance of financial institutions, it is necessary to give attributes to CONDUSEF, so that it can require Financial Institutions to take adequate measures to combat, stop, modify or avoid any kind of practices that harm the interests of Users.

In this sense, CONDUSEF in coordination with the Secretariat of Finance and Public Credit, must promote the formulation, dissemination and use of codes of ethics, by Financial Institutions, the above in benefit of users of financial services.

Likewise, it is necessary to promote new or better systems and mechanisms that facilitate Users' access to the products or services provided by Financial Institutions. In this point, CONDUSEF plays a main role, as it is an adequate channel between financial institutions and

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users of financial services, so it must have tools that allow it to achieve that end.

On the other hand, the creation of a Financial Services Arbitral System is proposed, in order to entrust CONDUSEF with the organization, functioning and promotion of said system, which would have as objective that financial institutions emit public offers of submission to arbitration to solve future controversies, with which the confidence of financial activities is potentiated and institutions that voluntarily adhere to the arbitral system would be distinguished before the public.

Finally, it is necessary that CONDUSEF has attributes so that it can order that Users be informed about the actions or omissions of Financial Institutions that affect their interests or rights, in order that they have adequate tools for decision-making.

In virtue of the above stated and founded, I submit to the consideration of this Honorable Sovereignty the following

EXPLANATION OF MOTIVES
(Decree of May 25, 2010)

Throughout history, the world economy has gone through periods of great financial crises.
The common characteristic of all these crises is that the interest rate rose abruptly as a result of the great exceptional demand for money associated with this phase of economic crisis.

In the case of Mexico, during 1994-1995, one of the most violent economic crises in all its history was lived, which caused a drastic drop in GDP and an even greater impoverishment of most Mexican families.

As a consequence of the banking rescue, and product of the Capitalization and Portfolio Purchase Programs (PCCC) and the Sanitization Programs, the Banking System became a creditor of obligations (promissory notes) owed by the Federal Government, for approximately 329,268 million pesos (at gross value).

Derived from the above, practically all economic indicators suffered a collapse, interest rates soared to extremely high levels.

For example, in Mexico and Latin America, financial liberalization in the last two decades transformed the financial systems of their economies; this change in banking and financial policy has decreased the State's participation in the determination of rates and commissions of the banking sector, and at the same time has affected investment amounts, growth, as well as access to financing that characterized the second half of the 20th century.

Currently, banking systems in Latin America are found with non-competitive structures that favor the obtaining of profits from large differentials between credit rates and savings rates.

According to the World Bank, in terms of competitiveness of our financial system, private sector bank credit relative to GDP in 2005 shows that Switzerland has a proportion of 171%, United Kingdom of 160%, Spain of 126%, Republic of Korea of 97%, Chile of 63% and, in the scope of NAFTA, Canada registers 76%, United States 48%, while our country only ranks at 13% of credit relative to GDP.

According to results from the Bank of Mexico, indicate that among the main causes for not requesting financing are high interest rates, bank refusal and economic uncertainty.

In this context, the excesses of a commercial banking that has not managed to self-regulate nor strengthen the payment system, limit as a whole the capacity of monetary policy and subtract capacity for growth from the national economy.

Regarding credit cards in our country, it is of great concern that internationally Mexico ranks among the countries in Latin America with the highest costs of credit cards.

According to data from the National Commission for the Protection and Defense of Users of Financial Services (Condusef), indicate that national entities apply a Total Annual Cost (CAT) that ranges between 32% and 66%, while in Chile it is located between 47% and 53% as maximum. That even in Colombia charges vary between 28% and 36%, in Peru they move from 24% to 60%, while in Venezuela they are located at 33%. The figure is even higher regarding countries like Canada, where CAT reaches between 18% and 20%; in Spain it sits between 8% and 25% and in the United States between 8% and 16%.

The plastic with the highest CAT is Invex with the Spira Classic Visa, while the cheapest is Inbursa with 42.82%. Entities like Scotiabank with the Traditional Classic have a CAT of 59.34%, HSBC of 63.68%, Banamex with its Classic card reaches 70.27% and BBVA-Bancomer with the Azul, of 79%.

It could be affirmed that the promotion of the use of credit cards has become a gold mine, to obtain extraordinary income with that activity that reaches limits that could be considered usurious.

It is important to remember that all credit cards charge delinquency interest, which are applied on the outstanding balance and practically double the interest rate that the respective credit card normally charges.

The aggressive campaigns for the placement of bank and commercial plastics, the expansion of credit lines without prior opinion or client request, and without an analysis of their credit capacity, the strategy followed in recent months by some banks to attack sectors of the population considered higher risk and on whom there is no prior credit information, as well as the permanent promotions of commerce inciting to buy now and pay in 3, 6 or more months without interest, have generated that the population has fallen into unnecessary over-indebtedness.

The overdue portfolio of credit cards grows alarmingly, such is the case that the National Commission for the defense of users of financial institutions (CONDUCEF), states that as of January of this year, more than seven million cardholders are in overdue portfolio for not having made the minimum payments in the last three months, which is equivalent to 39% of users of this type of consumer credit.

The National Banking and Securities Commission (CNBV) reported that in the year 2007, 25,588 million pesos were generated by charges to users of credit cards, and that despite the fact that in April 2007 modifications to the Laws of Credit Institutions, Protection and Defense of the User of Financial Services and of the National Banking and Securities Commission were approved, with the aim of promoting competition and reducing the charging of commissions, the result is that the main foreign banks operating in Mexico, such as CityGroup, HSBC, BBVA and Scotiabank, charge higher commissions than in their own countries of origin.

To mention some examples:

Charging of Total Annual Cost (CAT):

HSBC: in Mexico charges up to 77% on credit card, in England charges 16%;
Scotiabank: charges Mexicans 77% and for Canadians 18%;
BBVA Bancomer: in Mexico charges 80% and in Spain from 25%
Banamex Citygroup: in Mexico charge of 85%, in United States is 9%.

From the previous figures, it can be observed, for example that the main foreign banks operating in Mexico, such as Citigroup, HSBC, BBVA and Scotiabank, charge commissions up to eight or 10 times higher than in their countries of origin.

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In Mexico, up to $1.70 is paid to withdraw money from an ATM that is not part of the bank's network, while in Chile, Argentina, and Venezuela, less than $1 is paid, and the average cost of a bounced check in Mexico is around $70, whereas this charge in the United States is around $30.
According to information from the National Banking and Securities Commission (CNBV) and the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF), there are currently nearly 20 million credit, debit, savings, and other cards circulating throughout Mexico, where six thousand five hundred are issued daily. Regarding the interest rate added to the commissions charged to credit card users, better known as the Total Annual Cost (CAT), the average is 75%, which is equivalent to charging more than twenty times the rate they pay. For credit card debtors, their main inconvenience is the "CAT", as according to official information, its average, from a sample of 28 cards, is 75%. From the above, we can observe some examples in the following comparative tables:

BANK CARD CAT
AFIRME Classic 47.58%
INBURSA EFE classic 50.72%
BAJÍO Visa classic 52.34%
IXE Visa classic 58.53%
SCOTIABANK Visa classic 60.40%
BANORTE Classic 65.51%
BANREGIO Classic 67.91%
HSBC Visa classic 71.11%
AMERICAN EXPRESS Green 73.96%
BANAMEX Classic 77.02%
BBVA Blue 80.76%
SANTANDER Visa classic 84.20%
INVEX Spira Classic 113.40%
Source: El financiero, with information from CONDUSEF, Infosel and BANXICO Comparative of bank card rates as of June 2008

BANK MONTHLY RATE % ANNUAL RATE CAT MINIMUM INCOME* ANNUALITY FEE ANNUALITY FEE* AZTECA 8.40 100.28 N/D N/D free SANTANDER 4.16 49.94 81.36 FROM $5,000 TO $12,000 free FROM $390 TO $52,000 holder of $195 CALASICA TO $1,000 additional BBVA-BANCOMER 4.00 47.94 81.30 FROM $6,000 TO $12,000 free FROM $410 TO $630 holder of $205 (Classic and Gold to $315 additional) BANEMEX 3.66 43.94 71.73 FROM $5,000 TO $12,000 free FROM $400 TO $600 holder (Classic and Bsmart) of $0 $300 additional AMERICAN EXPRESS 3.66 43.94 77.36 FROM $6,000 TO $10,000 free FROM $150 TO $405 USD holder (Blue and Gold card) of $200 TO $325 additional HSBC 3.58 42.94 69.25 FROM $3,500 TO $12,000 free FROM $310 TO $510 holder of $170 to Classic $240 additional

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BANORTE 3.58 42.94 69.16 FROM $6,000 TO $20,000 free FROM $390 TO $504 holder of $304 to (Classic) to $348 additional SCOTIABANK INVERLAT 3.25 38.94 59.41 FROM $5,000 TO $15,000 free FROM $300 TO $450 holder of $150 to (Classic) to $225 additional INBURSA 2.75 33.00 42.82 $5,000 free No cost (EFE Classic Santander 2.42 29.00 45.00 $5,000 free 270 Holder additional free (Light) BANCOMER 4.00 47.94 79.02 $3,000 free $200 holder (Blue) $100 additional IXE 2.12 25.44 41.25 $10,000 free FROM $320 holder (Gold) of $160 traditional FONACOT 1.63 19.50 30.32 1485* 3.00% No cost SOURCE: Conducef. The rates are given for the axis card of each bank maximum in the contracts with the minimum monthly payment of these accounts, Data as of June 2008 *Monthly minimum wage in geographic zone C. According to current data (August 2008), the Bank of Mexico determined to increase by 25 basis points the target for the Overnight Interbank Interest Rate, placing it at 8.25%, in order to "anchor" inflation expectations in the medium term. In July, inflation at an annual rate reached 5.39%, the highest rate in the last four years, due mainly to the increase in prices of agricultural products and fuels. On June 20 last year, the central bank raised for the first time in the year the funding rate by 25 basis points, from 7.50% to 7.75%, after eight months without changes, due to the increase in external pressures on local inflation. A month later, the Bank of Mexico increased from 7.75% to 8.0% the rates, in order to reinforce the inflation expectations of the medium term (La Jornada 15/08/08) The National Banking and Securities Commission (CNBV) indicates that the fees charged by intermediaries during the first quarter of the year totaled 15 billion 431 million pesos, a figure 1.22% higher than that reported in the same period of 2007. (El Universal, August 13, 2008). In 2007, the profits of the banking sector in Mexico were 69 billion 533 million pesos, where it must be highlighted that net income from commissions on totals represented 27.8% and that for the first quarter of this year it rose to 35.2%. According to economic theory which states that the active interest rate (the one a bank charges for lending money), depends on three fundamental variables: the so-called "real rate", "inflation", plus a premium for "financial intermediation" which finally represents the profit of banks for "capturing savings" and "lending resources"; evidently this financial intermediation has much to do with factors of banking efficiency, among which are already included, the "risk" in which a bank incurs when lending money from savers. Thus, the active interest rate is represented mathematically as follows:
Active Interest = real rate + inflation + financial intermediation (bank efficiency, risk).
However, the high cost of financial intermediation currently reflects a high banking inefficiency in terms of its operation and on the other hand shows us that bankers are already including the "effect of greater risk for the recovery of their guarantees".

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Without a doubt, the highest cost is reflected in the interest rate charged, which is referenced to the equilibrium interbank interest rate for 28 days maturity (TIIE 28 days) and which in practical terms reflects "the cost of financing of the government and banks; that is, it is the approximate average of the interest rates that banks and the government pay to obtain money". But while that cost varies month to month, which is currently located at only 8 percent, banks add on average 40 percentage points more to obtain the interest rate they charge cardholders, with the interest they pay rising to 40 percent. It is important to remember that all credit cards charge delinquency interest, which is applied to the outstanding balance and practically doubles the interest rate that the respective credit card normally charges. In Mexico, around 40 percent of the total income of commercial banks is represented by commissions, a proportion higher than countries such as Brazil, England, France, and Spain, nations in which commission income represents between 30 and 36 percent From the situation mentioned above, it is intended that the Bank of Mexico, as a regulatory entity, resolve all problems and situations through the issuance of "general provisions". However, this turns out to be excessively omitting by leaving most matters to the subsequent issuance of provisions, as it does not establish the specific criteria for issuing them. Therefore, and among other consequences, savers are losing value and purchasing power of their wealth deposited in said Credit Institutions, as they generally do not perceive as yield the percentage cost of inflation, in addition to the fact that these Credit Institutions achieve a very significant differential of interest rates, which has driven up the profits obtained. Hence the importance that the Bank of Mexico and the National Banking and Securities Commission, as well as the other responsible authorities, regulate with all punctuality, on the margins of banking intermediation charged by Credit Institutions. It is important to note that article 24 of the Bank of Mexico Law empowers it to issue provisions that protect the interests of the public. The cited provisions must be of general application, possibly referring to one or several types of intermediaries, to certain operations or to certain areas or plazas. Likewise, the Law of the National Banking and Securities Commission in its article 2 states that "The Commission shall have as its object to supervise and regulate within its competence, financial entities, in order to ensure their stability and proper functioning, as well as to maintain and foster the healthy and balanced development of the financial system as a whole, in protection of the interests of the public." As for the Credit Institutions Law, its object is to regulate the banking and credit service, the organization and functioning of credit institutions, the activities and operations that they may carry
out, their healthy and balanced development, as well as to guarantee the protection of the interests of the public. It should also be mentioned that currently in various countries regulation is being carried out on the charging of commissions by Banking Institutions. In the Senate of the Republic, the issue has been addressed on other occasions and there have been allegations in that sense, with exhortations to the authorities and institutions. Unfortunately, the results of the exhortations, allegations, recommendations and suggestions to the authorities, to the institutions, to the banks and to the cardholders, have not given the expected results, as the problem not only continues, but has increased to levels that undoubtedly have placed in serious problems the users of these cards of lower incomes in our country. It is true that certain actions have been carried out such as the elaboration of the "decálogo of good use of the credit card", which undoubtedly has the best of intentions, but it is difficult that it be the integral solution for a problem of this nature.

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Declarations such as those made by the Bank of Mexico which has expressed: "the authorities and the banks must be alert to avoid that such expansion can lead to excessive vulnerability, both of households and of the banking sector itself" Although the institutional design of the Mexican State prioritizes inflation control through the Bank of Mexico and the supervision of the financial system in the National Banking and Securities Commission, the National Commission for the Protection of Users of Financial Services and the Secretariat of Finance and Public Credit, in the real practice of banking policy, the self-regulation of the bankers themselves prevails, even when their behavior differs from the objectives marked by the Constitution. The State must resolve the aspect of the regulation of banking interest rates. The high commissions for banking services and the low returns for savers discourage the use of banking for economic transactions. In Mexico, there is no law that regulates the application of these rates. Each bank determines the total annual amount it charges according to the supply and demand it has for cards, which does not happen in other countries where there is regulation and an average rate that cannot be exceeded, in addition to the fact that no replacement is charged nor is information on charges hidden. Banking has fundamentally three functions in an economy: it is a savings system, channels financing for the development of productive projects, and is the central axis of the payment system. To precisely regulate that last function, among the responsibilities of the Bank of Mexico is established, in article 2 of its Law:
"The Bank of Mexico shall have the purpose of providing the country's economy with national currency. In the achievement of this purpose, its priority objective shall be to ensure the stability of the purchasing power of said currency. It shall also be the purposes of the Bank to promote the healthy development of the financial system and to promote the proper functioning of the payment systems." Likewise, in its article 24, it establishes:
"The Bank of Mexico may issue provisions only when they have the purpose of monetary or exchange regulation, the healthy development of the financial system, the proper functioning of the payment system, or the protection of the interests of the public. In issuing provisions, the Bank must express the reasons that motivated them."
On the other hand, the Credit Institutions Law mentions in article 48 the following:
"The interest rates, commissions, prizes, discounts, or other analogous concepts, amounts, terms and other characteristics of active, passive, and service operations, as well as operations with gold, silver, and foreign exchange, that credit institutions carry out and the mandatory investment of their exigible liability, shall be subject to what is provided by the Organic Law of the Bank of Mexico, with the purpose of attending needs of monetary and credit regulation" Thus, responsibility as the Legislative Power we must rethink from an alternative approach, the regulation of the financial system, which adapts to the national and international financial reality, protecting and shielding the economy of citizens. For all the above, I submit to the consideration of this Honorable Chamber of Senators, the present initiative STATEMENT OF REASONS (Decree of January 10, 2014) Based on what is provided by article 71, fraction I of the Political Constitution of the United Mexican States, I allow myself to submit through its dignified channel to that Honorable Assembly, the present initiative of Decree by which various provisions of the Law for the Protection and Defense of Users of Financial Services, the Law for the Transparency and

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Regulation of Financial Services, the Credit Institutions Law and the Law of the National Institute for the Consumption of Workers are reformed, added to and repealed.
Within the framework of the strategy to transform banking and credit as a lever for the development of households and companies, considered in the Pact for Mexico, the protection of users of financial services, the promotion of banking and responsible financial inclusion are factors that must be strengthened.
Information, advice and protection of users who use the products and services offered by Financial Institutions is a fundamental axis that must govern the development of any financial system; which cannot occur, except through the implementation of actions that promote the competitiveness of institutions, as well as providing new tools to the authorities protecting the interests of users. In view of the above, it is considered necessary to adapt the current legal framework of the National Commission for the Protection and Defense of Users of Financial Services ("CONDUSEF") and reorient its objective primarily for the benefit of the user. In this context, it is imperative to improve in matters of protection of users of financial services, as well as to make effective equity in the relationships between them and Financial Institutions, for the best use of the products and services offered by the market. In this sense, this initiative contemplates a series of tools with which it is intended to achieve a balance between the relationships of financial entities with users of their services. The power of CONDUSEF to issue recommendations to Financial Institutions and make them known to their bodies or trade associations, as well as to the general public, is foreseen, with which it is intended to improve the financial services they provide. Likewise, CONDUSEF is empowered to regulate adhesion contracts and transaction receipts, as well as to prevent the dissemination of misleading information by Financial Institutions, subject to previously issued provisions. Similarly, it is contemplated that adhesion contracts entered into by Financial Institutions shall not contain abusive clauses, and CONDUSEF is empowered to, through general provisions, establish the cases and circumstances under which it is considered that there are this type of clauses, with which it is intended to avoid the inclusion of circumstances that could affect users. Also, the power of CONDUSEF to establish secondary provisions in which the activities that depart from sound practices and uses regarding the offering and commercialization of financial operations and services are defined is contemplated, which will allow ordering the markets for the benefit of users of financial services. The increase in the coverage of financial services throughout the country, the emergence of new participants and the diversity of products, make a more specialized regulation necessary in matters of contracts, supervision, transparency, information and advertising, in addition to requiring new procedures that allow to resolve more clearly and expeditiously the controversies that arise as a consequence of the interaction between the user and the Financial Institution. The CONDUSEF Law provides that Financial Institutions have specialized units for the attention of their clients, and in order to bring these units closer to users, it is foreseen that there be a representative of these in each federal entity
where the Financial Institution has offices or branches. From this perspective and in concordance with international trends, the creation of the Financial Arbitration System is proposed, which offers a new procedure for the resolution of disputes that guarantees impartiality, speed, transparency, effectiveness and efficiency for the greatest benefit of the parties. In this sense, the integration of a specialized committee in financial matters, with representatives of CONDUSEF, the National Banking and Securities Commission, the National Insurance and Bonding Commission, the National Commission for the Retirement Savings System and the Secretariat of Finance and Public Credit is contemplated. Similarly, the scope of the technical report, a fundamental instrument for the defense of the user, is strengthened and the possibility is foreseen that it be an executive title. In matters of conciliation, the provisions are adapted so that conciliators have a more active participation, seeking favorable solutions for the user in less time by reducing the deadlines of the process. Likewise, it is intended to unify concepts and definitions to allow that the contents and messages directed to users are homogeneous and thus achieve greater clarity and understanding of the different topics. The creation of a Bureau of Financial Entities by CONDUSEF is foreseen, with the purpose that Users of financial services have relevant information for decision making. In the Law for the Transparency and Regulation of Financial Services, for popular financial societies, community financial societies and savings and loan cooperatives, the obligation to register with CONDUSEF the commissions they charge for the payment and credit services they offer to the public, as well as their respective modifications, is contemplated. The possibility is contemplated that clients transfer their consumer credits to another financial entity, which will be in charge of terminating the respective contracts to allow the mobility of the operations subject to the transfer. With this innovation, clients will have the possibility to migrate the operation in question to the financial entity that offers them better conditions. Similarly, the present Initiative proposes to include the prohibition for financial entities to condition the contracting of financial operations or services to the contracting of another operation or service (tied sales), specifying the sanction that will apply to financial entities that contravene this provision. In congruence with the above, it is proposed to reform the Credit Institutions Law, in order to clarify the current content, as well as to establish the obligation of credit institutions to cancel passive operations no later than the third banking business day following that in which the request is received by the client, with which it is intended to speed up this process. Finally, it is proposed to reform the Law of the National Institute for the Consumption of
Workers in order to extend the term of the credits granted by the Institute, which will benefit workers. For the above and based on article 71, fraction I, of the Political Constitution of the United Mexican States, I submit to the consideration of the Honorable Congress of the Union, the following Initiative of:
STATEMENT OF REASONS
(Decree of March 9, 2018)
Based on article 71, fraction I of the Political Constitution of the United Mexican States, I allow myself to submit, through its dignified channel, to that Honorable Assembly, the present Initiative of decree by which the Law to Regulate Financial Technology Institutions is issued and various provisions of the Credit Institutions Law, the Securities Market Law, the General Law of Auxiliary Credit Organizations and Activities, the Law for the Transparency and Regulation of Financial Services, the Law to Regulate Credit Information Societies, the Law for the Protection and Defense of Users of Financial Services, the Law to Regulate Financial Aggregations, the Law of the National Banking and Securities Commission and the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin are reformed, added to and repealed.

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In recent decades, technology has radically transformed the way the trade of goods and services is carried out globally. This revolution of innovation, driven by the wide availability of technology, has had a very important impact on the financial services sector.
The impact of technology has transformed the provision of traditional banking and credit services, through innovations that have generated a significant reduction in the use of branches for the provision of financial services.
This type of technology has been developed in recent years in harmony with the legislation applicable to regulated and supervised financial entities, but likewise, other technological innovations and business models have emerged during this period that do not have regulation and supervision by the authorities over the operations they carry out with their clients, which is why it is necessary to include them within the regulated and supervised sector of the financial system. In addition to the above, it is foreseeable to think about new technologies that promote the decentralization of systems such as blockchain technology (Blockchain in English), as well as the proliferation of the collaborative economy and peer-to-peer financial services, which will further modify the landscape regarding the way financial services are provided in the coming years. The capacity for the expansion of financial services through new technologies is enormous. According to the Fourth Quarterly Statistical Report 2016 prepared by the Federal Institute of Telecommunications, by December 2016, the number of mobile phone subscriptions in Mexico reached 111.7 million, while the number of mobile broadband subscriptions was 74.5 million. In view of the foregoing, this Initiative aims to provide a regulatory space so that innovation through technology in financial services can develop and flourish. This is with the purpose of placing Mexico at the forefront in the development of financial services capable of increasing the level of financial inclusion throughout the country and improving the conditions of competition in the Mexican financial system. The initiative proposes creating a new Law to be called “Law for the Regulation of Financial Technology Institutions”, which aims to regulate Financial Technology Institutions (FTI) and establish the conditions for regulated financial entities under this and other financial laws to develop technological innovations in safe regulatory spaces. With the presentation of the Initiative, the need is recognized that such a dynamic sector as technological innovation requires a regulatory framework that allows authorities to mitigate risks and allow its expansion in a competitive environment. Therefore, the Law for the Regulation of Financial Technology Institutions is a law that establishes principles, so that from these, the different competent financial authorities issue secondary regulation in accordance with the inherent dynamism of said sector. The Law for the Regulation of Financial Technology Institutions is based on the principles of financial inclusion and innovation, consumer protection, preservation of financial stability, promotion of fair competition, and prevention of money laundering and terrorist financing. With the principle of financial inclusion, the aim is to bring financial services closer to people and sectors that have traditionally not been part of the financial system, promoting greater financial education and
advice on these new alternatives. Likewise, complementing financial inclusion, is the principle of innovation, which seeks to provide tools to increase the use of the mentioned services. The principle of consumer protection aims to protect the client by establishing defense mechanisms and verification of minimum standards, as well as granting regulatory and supervisory powers to financial authorities. Likewise, guidelines for the protection of personal data are established, as well as the obligation of complete disclosure to clients and investors of the operating model and risk factors that the FTI might represent.

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Regarding the principle of preservation of financial stability, what is sought is to establish a general framework of authorized and supervised operation for FTIs, imposing prudential rules proportional to the risks they represent in various areas, such as financial, operational, market, technological (cyber-security), corporate governance, and accounting rules. Likewise, it is sought that the financial technology market develops with limits and maximum operation amounts in order to avoid regulatory inequality with other financial sectors, thus seeking a level playing field and healthy and balanced competition. Fair competition is one of the key factors intended to be promoted and cared for, in view of the fact that the Financial Technology industry will allow greater diversity and new channels for the distribution of financial services, as well as the reduction of costs and improvement in the provision of said services. A concern that has been the cause of the creation of standards, controls, and regulation for the provision of financial services, both nationally and internationally, has been the risk of money laundering and terrorist financing. Therefore, the last mentioned principle aims to prevent and mitigate said risk, seeking the correct financial functioning and its integrity, establishing the already accepted and proven regulatory framework, with minimum identification standards for clients that allow preventing this type of conduct. In addition to the above, it is relevant to mention that the Law for the Regulation of Financial Technology Institutions is technologically neutral, that is, the technology is indifferent regarding the service provided. It is of utmost importance to highlight that the over-regulation of this sector could bring about a result opposite to the end pursued by this new regulation, potentially damaging the financial market and causing a disincentive in financial inclusion, as well as creating barriers that could prove insurmountable for entrepreneurs, as well as for those who wish to opt to operate with any of the figures recognized in the Law for the Regulation of Financial Technology Institutions. As a consequence of the foregoing, the Law only provides for a general regulatory framework, that is, it only intends to establish the bases and minimum regulation that must govern FTIs, leaving the rest to be regulated in secondary provisions with the objective of having greater flexibility in its regulation, which would allow this to adapt according to the constant dynamism of this sector. Although there must be flexibility in the regulation of FTIs, this should not be interpreted as the existence of regulatory arbitrage, since FTIs, according to the Law for the Regulation of Financial Technology Institutions, must comply with the established requirements regarding amounts and limits, just as other entities in the sector comply with their respective financial laws. However, it is also necessary to emphasize that FTIs
must comply with these obligations proportionally to the risks they incur. Now, once the principles guiding the action of entities regulated by the Law for the Regulation of Financial Technology Institutions are established, which must also be followed by authorities in the exercise of their powers, the Law establishes the regulation for the different types of FTIs. FTIs will be entities authorized, regulated, and supervised by financial authorities. To operate as an FTI, the Law for the Regulation of Financial Technology Institutions establishes that they will require authorization from the National Banking and Securities Commission, which will be granted prior to the review of the information and documentation mentioned in said Law and prior agreement of the Inter-institutional Committee. Said Committee would be integrated by three key financial authorities, namely, the Ministry of Finance and Public Credit, the National Banking and Securities Commission, and the Bank of Mexico. The Law for the Regulation of Financial Technology Institutions will recognize two types of FTIs: crowdfunding institutions and electronic payment fund institutions. Crowdfunding institutions (crowdfunding in English) are platforms that put people interested in participating in debt, equity, and co-ownership or royalty schemes in direct contact. These institutions provide access to new sources of financing for segments of the population that are normally not served by traditional financial entities, regulating three forms. Debt crowdfunding institutions are those in which the institution puts investors in direct contact with applicants who require financing, who will subsequently return the resources, generally, with the payment of interest. Equity crowdfunding institutions are those that facilitate that investors contribute resources, through the institution, to obtain participations in the share capital of corporate applicants promoted by this means to subsequently become participants in the profits of said corporate entities. Finally, co-ownership or royalty crowdfunding institutions are those in which investors contribute resources to a project, obtaining a participation in a good or right. This figure has been regulated internationally in countries such as the United States, Canada, China, Spain, Italy, France, the United Kingdom, and New Zealand. The proposed Law contains the regulation of electronic payment fund institutions, as a consequence of the increased use of this payment method in commerce, as it offers security and acceptance in businesses that are affiliated. In this regard, Peru, Paraguay, Brazil, Colombia, Uruguay, Kenya, and the European Union, among other jurisdictions, have regulated electronic payment funds, defining them in similar terms, as the monetary value represented by a claim against its issuer, stored in an electronic or digital medium, whose value is constant, denominated in the same currency and equivalent to the funds received by the
issuer against its delivery. In the regulation proposed in the Law for the Regulation of Financial Technology Institutions, electronic payment fund institutions will provide services for the issuance, administration, reporting, and transmission of electronic payment funds (e-money in English). Electronic payment funds should be understood as the monetary value issued at par against the receipt of legal tender, which will serve to make payments and transfers. Likewise, it is proposed that FTIs have the ability to operate with virtual assets. In this sense, virtual assets are representations of a verifiable digital value, which are not issued or backed by any central bank or financial entity, that is, they do not have legal tender status, and despite this, they generate utilities for exchange due to their acceptance by the public. In recent years, the use of virtual assets, especially “Bitcoin”, has increased, as well as its acceptance and value, so the regulation of institutions that intermediate with these assets has become increasingly pertinent. Additionally, it is proposed that persons who offer the purchase and sale of virtual assets within national territory be subject to the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin. Considering that the speed at which technological advances occur does not allow adjusting the assumptions of legal norms with adequate opportunity and that many companies developing innovative schemes or means are of recent creation, the Initiative contemplates, in addition to FTIs, the regulation of Novel Models. To operate such models, societies must have a temporary authorization granted by the competent Supervisory Commission regarding innovation, with the purpose of testing their innovative business models based on technology in financial activities currently regulated by some law of the current financial system. With this, it is sought that societies operating with Novel Models provide their services to a reduced number of clients and for a limited time, allowing them to experiment and develop their innovation in the real market in a controlled and supervised manner by authorities. The authorization of Novel Models is being implemented in several countries, among which special mention deserves the United Kingdom and Singapore, pioneers in creating a figure known in English as Regulatory Sandbox. Additionally, the Initiative contemplates the possibility of granting temporary authorizations to Financial Entities to carry out activities contemplated in their social object through Novel Models when exceptions to general provisions applicable to them are necessary. In terms of user protection for services offered by FTIs, their supervision will be subject to the powers of the National Commission for the Protection and Defense of Users of Financial Services, so secondary regulation related to the formalization of legal relationships and the resolution of disputes will be
issued. In this regard, the Law for the Protection and Defense of Users of Financial Services is modified, and FTIs are included as financial entities in terms of the Law for the Transparency and Orderly Conduct of Financial Services. In international experience, there is a set of rules and specifications that allow technological applications to communicate with each other. These rules and specifications are called APIs (from the English acronym Application Programming Interface). This Initiative proposes that financial entities and FTIs have open APIs, allowing the interconnectivity of digital financial services as long as there is prior consent from users, specifically mentioning that this would not be a violation of financial secrecy. It is important to mention that to use the data shared through APIs, compliance with the general provisions issued by the competent authority is required. The Federal Executive has sought to generate an environment of greater financial inclusion, in which an increase in well-being for the population is encouraged, the movement of financial resources and the obtaining of credit and other financial services are incentivized under convenient conditions for different sectors of society, and competition is promoted, while at the same time ensuring the stability and security of the financial system, mitigating risks, and protecting the consumer. This Initiative continues this same trend and fosters innovation in the financial system so that it becomes another engine of growth for the country. Among the National Goals established in the National Development Plan 2013-2018 is “Prosperous Mexico,” whose purpose is to promote sustained productivity growth, considering that adequate infrastructure and access to strategic inputs can foster competition and allow greater flows of capital and knowledge, in addition to providing favorable conditions for economic development, through regulation that allows fair competition between companies and the design of a modern economic promotion policy focused on generating innovation and growth in strategic sectors. To achieve this, strategies and lines of action were established, among which are: maintaining the macroeconomic stability of the country, democratizing access to financing for projects with growth potential, and guaranteeing clear rules that incentivize the development of a competitive internal market. As has been established throughout this exposition, among the objectives of the Law are the increase in the level of financial inclusion throughout the country, the increase in access to financing, and the improvement of competition conditions in the Mexican financial system, so the Law for the Regulation of Financial Technology Institutions will be an adequate instrument that will help fulfill the National Development Plan 2013-2018. For the foregoing, and in exercise of the power conferred upon me by Article 71, fraction I of the Political Constitution of the United Mexican
States, as well as Article 73, fraction X of the same instrument, I submit to the consideration of the Honorable Congress of the Union, the following Initiative of:
STATEMENT OF REASONS
(Decree of January 24, 2024)
The exercise of the state's ius puniendi, through the ability to impose administrative sanctions, implies one of the most incisive actions of the Public Administration in the legal sphere of individuals; the administration orders and protects the public interest through the application of a sanction, and this activity takes on particular importance when it is directed at the proper functioning of the organization and public service. The sanctioning power is that faculty of public administration to impose sanctions through an administrative procedure, understood as administrative sanction as that harm inflicted on an administrator as a consequence of an illicit conduct, with repressive purpose, consisting of the

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penalty involving the deprivation of a good or right, or the imposition of a duty, as the public administration is prohibited from imposing penalties consisting of deprivation of liberty.

An administrative sanctioning procedure is a mechanism or procedure through which the State, through administrative units, carries out functions of inspection, verification, control, and sanction, with the aim of determining responsibility or acquitting for the possible violation of the law, or for failing to comply with some obligation related to the sector in which they operate. As a result of said procedure and in accordance with the sanctioning power, the authority imposes a sanction or fine, which must be distinguished from the word "violation" (infracción), as they do not mean the same thing; thus, the fine is defined as the monetary sanction imposed for any legal contravention, to the benefit of the State or any official entity authorized to impose it.3 For its part, the term violation is conceived as that act committed against what is established in a legal norm or failing to comply with a commitment undertaken.

The Mexican Financial System is regulated and supervised by various authorities that are responsible for monitoring that actions are taken under the applicable regulations and, if applicable, applying the corresponding sanction in case of the commission of any violation; however, defects of unconstitutionality have arisen due to the lack of legal certainty regarding the time to decide their legal situation.

Problem Statement

In recent dates, the Supreme Court of Justice of the Nation, as well as the Circuit Collegiate Courts through various jurisprudential criteria, declared the unconstitutionality of various legal provisions of different regulatory laws of the National Financial System, considering that they violate the principle of legal certainty, which consists of the right that an institution or financial entity subject to an administrative sanctioning procedure has to exercise its defense and be heard, with due opportunity, within a procedure that establishes a reasonable deadline for the competent authority to resolve, if applicable, the imposition of a privative act, in consonance with what is mandated by articles 14 and 16 of the Political Constitution of the United Mexican States.

The foregoing, under the argument that, by not clearly and precisely establishing the maximum deadline for the authority to issue and notify the resolution that ends the administrative sanctioning procedure, the guarantee of due process is violated.

Conscious of this problem and with the aim of avoiding the instruction of administrative sanctioning procedures that violate due process to the detriment of the legal certainty of the Financial System, an exhaustive review of all the provisions that regulate it was carried out.

Therefore, this Initiative intends to resolve the impact on the principles of legality, legal certainty, and prompt and expeditious justice in the administrative sanctioning procedure provided for in the laws that regulate the National Financial System, by establishing the general scheme of the administrative procedure, identifying each of its stages, which adjust to the essential formalities of the procedure, recognized both by legal doctrine, judicial interpretations supported by our Highest Courts, and in accordance with international best practices. An example of this is found in the jurisprudential thesis 1a./J. 11/2014 (10a.), Gazette of the Judicial Weekly of the Federation. Book 3, February 2014, Volume I, page 396, which states verbatim:

"RIGHT TO DUE PROCESS. ITS CONTENT.
Within the guarantees of due process, there is a "hard core", which must be inexcusably observed in every jurisdictional procedure, and another set of guarantees that are applicable in processes that imply the exercise of the State's punitive power. Thus, regarding the "hard core", the guarantees of due process that apply to any procedure of a jurisdictional nature are those that this Supreme Court of Justice of the Nation has identified as essential formalities of the procedure, the set of which integrates the "guarantee of hearing", which allow the governed to exercise their defenses before the authorities definitively modify their legal sphere. Regarding this, the Full Tribunal of this Supreme Court of Justice of the Nation, in the jurisprudence P./J. 47/95, published in the Judicial Weekly of the Federation and its Gazette, Ninth Era, Volume II, December 1995, page 133, under the heading: "ESSENTIAL FORMALITIES OF THE PROCEDURE. THEY ARE THOSE THAT GUARANTEE AN ADEQUATE AND TIMELY PREVIOUS DEFENSE TO THE PRIVATIVE ACT.",

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maintained that the essential formalities of the procedure are: (i) the notification of the start of the procedure; (ii) the opportunity to offer and present the evidence on which the defense is based; (iii) the opportunity to argue; and, (iv) a resolution that settles the disputed issues and whose appeal has been considered by this First Chamber as part of this formality. Now, the other nucleus is commonly identified with the list of minimum guarantees that every person whose legal sphere intends to be modified through the State's punitive activity must have, as occurs, for example, with criminal, migratory, tax, or administrative law, where it will be required that the guarantees be compatible with the specific subject matter of the case. Therefore, within this category of due process guarantees, two species are identified: the first, which corresponds to all people regardless of their condition, nationality, gender, age, etc., within which are, for example, the right to have a lawyer, to not testify against oneself, or to know the cause of the sanctioning procedure; and the second, which is the combination of the minimum list of guarantees with the right to equality before the law, and which protects those people who may find themselves in a situation of disadvantage before the legal system, by belonging to some vulnerable group, for example, the right to consular notification and assistance, the right to have a translator or interpreter, the right of girls and boys to have their detention notified to those who exercise their parental authority and guardianship, among others of the same nature.

Amparo in revision 352/2012. October 10, 2012. Five votes of the Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Guillermo I. Ortiz Mayagoitia, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Arturo Zaldívar Lelo de Larrea. Secretary: Mario Gerardo Avante Juárez.

Direct Amparo in revision 3758/2012. Maple Commercial Finance Corp. May 29, 2013. Five votes of the Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Alfredo Gutiérrez Ortiz Mena. Secretary: David García Sarubbi.

Amparo in revision 121/2013. June 12, 2013. Five votes of the Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Alfredo Gutiérrez Ortiz Mena. Secretary: Cecilia Armengol Alonso.

Amparo in revision 150/2013. July 10, 2013. Five votes of the Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Jorge Mario Pardo Rebolledo. Secretary: Mercedes Verónica Sánchez Miguez.

Direct Amparo in revision 1009/2013. October 16, 2013. Five votes of the Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo, who reserved the right to formulate a concurrent vote. Reporter: José Ramón Cossío Díaz. Secretary: Julio Veredín Sena Velázquez.

Jurisprudential thesis 11/2014 (10a.). Approved by the First Chamber of this High Court, in session of date seven of February two thousand fourteen.” (emphasis added)

OBJECTIVE OF THE INITIATIVE

This Initiative details in each of the financial laws, the stages of the administrative sanctioning procedure, as follows:

a) Expiration of the Sanctioning Power.

In the Initiative, the 5-year deadline that the authority has to initiate the administrative sanctioning procedure is retained, counted from the next business day after which the conduct was carried out or the assumption of the violation was updated. This deadline is consistent with the national legal framework applicable to administrative procedures, which establish similar deadlines for the extinction of the authority's sanctioning power, in order to contribute to justiciable legal certainty.

This deadline may be suspended for up to two years due to the non-existence of the presumed infringer's domicile or due to the filing of some defense mechanism, and it will resume from the date on which the respective authority has knowledge of the domicile or when the final resolution corresponding to the defense mechanism invoked is issued.

Likewise, it was considered relevant to distinguish the moment when the counting of said deadline begins regarding continuous and continuing conduct, being in the first case from the moment the conduct ceases and regarding continuing conduct from the consummation of the last conduct.

On the other hand, it is provided that the expiration deadline referred to above will be interrupted, that is, it will stop counting, at the moment of notification to the presumed infringer of the start of the administrative sanctioning procedure.

b) Right to hearing and offering of evidence.

In the initiative, it is stated that when the authorities notify the presumed infringer of the start of the administrative sanctioning procedure, they must grant them the right to hearing to manifest what is in their interest and the possibility of offering evidence for a period of ten business days, which may be extended by ten additional business days at the request of the party.

c) Presentation of evidence.

Once the deadline referred to in the previous paragraph and, if applicable, its extension has concluded, the authority will have up to sixty business days to present the evidence that has been offered, which is considered sufficiently broad for its preparation and presentation.

d) Period for arguments and closing of instruction.

Once the evidence has been presented, the authority will notify the presumed infringer of the opening of the five-business-day period to formulate arguments. Such notification, being of an intra-procedural nature, will not require being performed personally, attending to the principle of legal interest of the presumed responsible person within the processing of the procedure.

On the next business day after the expiration of the deadline to formulate arguments, the instruction will be considered closed.

e) Deadline for resolution.

The authority will have a deadline that will not exceed one hundred eighty business days to issue and notify the resolution that ends the administrative sanctioning procedure, imposing, if applicable, the sanctions that result from it.

The foregoing provides certainty and legal security to the presumed infringers and establishes a maximum deadline by which the authority must definitively resolve the existence of the violation, as well as the imposition of the sanction that, if applicable, was deserved due to the reproachable conduct.

In this sense, the inclusion of said deadline in the laws that regulate the National Financial System surpasses the jurisprudential interpretations that motivated the presentation of this Initiative.

In conclusion, financial instructions and entities will have certainty about the stages of the administrative sanctioning process, the duration of each, and the moment when the authority can no longer continue with legal actions for the imposition of sanctions. Likewise, it guarantees the fundamental rights enshrined in the Political Constitution of the United Mexican States by differentiating each stage of the process, in such a way that it can assert its rights, while also limiting the powers of the authority so that the legal sphere of the governed is not affected.

Finally, the revocation procedures for authorizations granted by the Ministry of Finance and Public Credit are strengthened, for the constitution, operation, and functioning, as appropriate, of various entities and financial institutions, with the aim of clarifying certain aspects of the procedure and avoiding that such entities could be placed in a state of defenselessness, as well as to provide that, in these procedures, the consultation instances must issue the corresponding opinion at least thirty business days in advance before the deadline provided for issuing the resolution that ends the revocation procedure expires. In the event that any of the opinions are issued after the provided deadline, the Ministry of Finance and Public Credit may resolve with the records in the file, without the need to consider the opinion presented out of time.

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REFERENCES

Reformed by Decree published in the Official Gazette of the Federation on June 25, 2009.
Added by Decree published in the Official Gazette of the Federation on June 25, 2009.
Repealed by Decree published in the Official Gazette of the Federation on June 25, 2009.
Reformed by Decree published in the Official Gazette of the Federation on May 25, 2010.
Added by Decree published in the Official Gazette of the Federation on May 25, 2010.
Reformed by Article Second of the Decree published in the Official Gazette of the Federation on January 10, 2014.
Added by Article Second of the Decree published in the Official Gazette of the Federation on January 10, 2014.
Reformed by Article Fifth of the Decree published in the Official Gazette of the Federation on March 9, 2018.
Added by Article Fifth of the Decree published in the Official Gazette of the Federation on March 9, 2018.
Reformed by Article First of the Decree published in the Official Gazette of the Federation on January 24, 2024.
Added by Article First of the Decree published in the Official Gazette of the Federation on January 24, 2024.

Law for the Transparency and Regulation of Financial Services

Lineage: In force

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