Norm for the Authorization and Regulation of Savings and Credit Cooperatives

Page 1 of 8 RESOLUTION CDMF-XXXVII-1-25 Dated October 14, 2025 THE MONETARY AND FINANCIAL DIRECTIVE COUNCIL

CONSIDERING

I That Article 134 quinquies of Law No. 561, added by Law No. 1237, “Law of Reforms and Additions to Law No. 561, General Law of Banks, Non-Banking Financial Institutions and Financial Groups”, published in La Gaceta, Official Gazette No. 37, of February 25, 2025 (hereinafter Law No. 561), establishes that “savings and credit cooperatives that carry out financial intermediation activities on a habitual basis, and that have a minimum of total assets of one hundred million córdobas (C$100,000,000.00), will be subject to regulation, supervision, surveillance and auditing by the Superintendency…”. Additionally, it establishes that “savings and credit cooperatives with amounts less than one hundred million córdobas (C$100,000,000.00) in total assets, will only be obligated to register with the Superintendency and submit the information it requests.”

II That Article 17, letter “A”, numeral 3) of Law No. 1232, “Law on the Administration of the Monetary and Financial System”, published in La Gaceta, Official Gazette No. 241, of December 30, 2024, establishes as part of the attributions of the Monetary and Financial Directive Council the power to “Approve regulations applicable to all institutions and persons regulated by the Central Bank and the Superintendency.” Additionally, the same Article 17, in its letter “C”, numerals 1) and 2), respectively, also empowers this Directive Council to “Approve general norms to strengthen and preserve public security and confidence in institutions under the supervision, inspection, surveillance and auditing of the Superintendency…”, as well as to “Approve general norms that promote adequate, agile, modern and practical supervision, including risk-based supervision, over institutions subject to the supervision, inspection, surveillance and auditing of the Superintendency.”

III That Article 134 septies of the aforementioned Law No. 561, added by Law No. 1237, provides that “The Superintendency will be the responsible instance to regulate and supervise savings and credit cooperatives...” referred to in said Law, being empowered to, among other aspects, issue the procedures, instructions and administrative dispositions necessary for the correct functioning of the aforementioned entities.

In exercise of its powers,

HAS ISSUED

The following,

Page 2 of 8

NORM FOR THE AUTHORIZATION AND REGULATION OF THE SAVINGS AND CREDIT COOPERATIVES

CHAPTER I CONCEPTS, OBJECT AND SCOPE

Article 1. Concepts. - For the purposes of application of the provisions contained in this norm, the terms indicated in this article, both in uppercase and lowercase, singular or plural, will have the following meanings: a) Board of Directors: The highest governing and administrative body of the savings and credit cooperative, as established in Law No. 499, General Law of Cooperatives. b) Directive Council: Monetary and Financial Directive Council. c) CAC or cooperative: Savings and Credit Cooperative. d) INFOCOOP: Nicaraguan Institute of Cooperative Development. e) Financial Intermediation: Carrying out any act of capturing money from its own members, pre-members, from others authorized by the Superintendency or with external resources, with the purpose of directing those resources, primarily, to the granting of credits, regardless of the document in which the operation is formalized. f) Law No. 561: “General Law of Banks, Non-Banking Financial Institutions and Financial Groups”, contained in Law No. 1175, “Law of the Nicaraguan Legal Digest of the Banking and Finance Matter”, published in La Gaceta, Official Gazette No. 153, of August 20, 2024 and its reforms. g) Law No. 499: “General Law of Cooperatives”, contained in Law No. 1097, Law of the Nicaraguan Legal Digest of the Enterprise, Industry and Commerce Matter, approved on November 25, 2021 and published in La Gaceta, Official Gazette No. 137 of July 26, 2022 and its reforms. h) Law No. 977: “Law Against Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction”, contained in Law No. 1175, “Law of the Nicaraguan Legal Digest of the Banking and Finance Matter”, published in La Gaceta, Official Gazette No. 153, of August 20, 2024 and its reforms. i) Law No. 1232: “Law on the Administration of the Monetary and Financial System”, published in La Gaceta, Official Gazette No. 241, of December 30, 2024. j) Law No. 1237: “Law of Reforms and Additions to Law No. 561, General Law of Banks, Non-Banking Financial Institutions and Financial Groups”, published in La Gaceta, Official Gazette No. 37, of February 25, 2025. k) Pre-member: Natural person who applies to the CAC to request their affiliation, whose entry has not yet been approved by the general assembly of members. This status shall not exceed more than one year. l) National Registry of Cooperatives: National Registry of Cooperatives under the charge of INFOCOOP. m) Superintendent: Superintendent of Banks and Other Financial Institutions. n) Superintendency: Superintendent of Banks and Other Financial Institutions.

Article 2. Object and scope. - This norm aims to establish the requirements and guidelines for the constitution, authorization, regulation and functioning of savings and credit cooperatives, with a minimum of total assets of one hundred million córdobas (C$100,000,000.00).

CHAPTER II AUTHORIZATION AND FUNCTIONING REQUIREMENTS

Article 3. Requirements to constitute. - Those interested in constituting a CAC must submit a request to the Superintendent, who will establish the legal documentation, feasibility study and its content, information of the promoting members, as well as the documentation to evidence the lawful origin of the equity to be contributed to the cooperative, among other aspects, which must be fulfilled to obtain the authorization of constitution. All information and/or documentation required from those interested in constituting a CAC, which is in a language other than Spanish, must be presented with its corresponding translation into Spanish, which must comply with what is stipulated in the national laws on the matter or with the laws of the country where the translation is carried out. Likewise, documents coming from abroad must comply with the requirements established by the laws on the matter so that they can produce legal effects in the country. The members who form part of the Board of Directors of the CAC must authorize in writing the Superintendency so that it can request information from the corresponding natural or legal persons, with the purpose of proving their honorability and competence.

Article 4. Authorization of constitution. - Once all the documents referred to in the previous article have been presented and if the Superintendent finds them fulfilled after verification, the Superintendent will submit the request to the consideration of the Directive Council, who will grant or deny the authorization to constitute as a CAC, within a period that does not exceed 120 days from the presentation of the request in due form. In case the request is approved, the Superintendency will notify the respective resolution to INFOCOOP for the inscription of the cooperative in the National Registry of Cooperatives, as well as to the Financial Analysis Unit for matters related to registration as an obligated subject. The public notary who authorizes the legal constitution of the CAC must mention the edition of La Gaceta, Official Gazette, in which the resolution of authorization to constitute as a CAC, issued by the Directive Council, had been published, and insert in full in the public deed of constitution the certification of said resolution.

Article 5. Requirements to start operations. - To start operations, CACs must comply with the requirements established by the Superintendency, related, among other aspects, to the legal formalization of the CAC, opening financial situation statement, appointments of main officials, contract models and with the infrastructure, technology, human resources, policies, manuals and/or regulations approved by the Board of Directors for the management of risks inherent to operations, such as credit, liquidity, market, operational, technological and money laundering and/or assets, terrorism financing and financing of the proliferation of weapons of mass destruction risks, in accordance with the legal framework applicable to the operations to be carried out. All of the above in correspondence with the size of the CAC, its nature, complexity and volume of its transactions and its own risk profile.

Article 6. Authorization of functioning. - To proceed with the request for functioning authorization of a CAC, it must demonstrate and evidence, to the satisfaction of the Superintendency, the compliance with all the requirements established to start operations as provided in the preceding article, within a maximum period of one hundred eighty (180) days counted from the resolution that authorizes its constitution; if this is not complied with within this period, this resolution will become void and have no legal value. The Superintendency will verify if the applicants have completed all the requirements required for their functioning and, if it finds them fulfilled, will grant the functioning authorization of the CAC within a maximum period of fifteen (15) business days after the end of said verification; otherwise, it will communicate to the petitioners the deficiencies noted so that they fill in the omitted requirements and, once the deficiency is remedied, will grant the authorization within a term of five (5) business days counted from the date of remediation. The authorization must be published in La Gaceta, Official Gazette, at the expense of the authorized CAC and must be inscribed in the National Registry of Cooperatives. The authorized CAC must present to the Superintendency, at the latest within a period of thirty (30) days, counted from the acknowledgment of receipt of the notification of authorization to start operations, a notarially certified copy of the registration as an Obligated Subject before the Financial Analysis Unit (UAF). The aforementioned period may be extended by reasoned request of the interested party.

CHAPTER III CAPITAL AND RESOURCES

Article 7. Capital. - The capital of CACs is constituted by the contributions of members in cash or goods valued at fair value, according to the accounting framework established by the Superintendency, which will be represented by contribution certificates, subscribed and paid by their members. These certificates represent the equity participation of the members in the cooperative and confer them the rights and obligations recorded in Law No. 499. No member may have, directly or indirectly, more than 10% of contributions to the social capital of the CAC. The contributions of pre-members will be registered as liabilities until they become members of the CAC.

Article 8. Required capital. - In order to promote the solvency of CACs, they must maintain a ratio of at least ten percent (10%) between the capital calculation base and their total assets. The Superintendency may establish a higher required capital percentage, based on the risk of the CACs or for prudential reasons.

Article 9. Resources. - In addition to capital, surpluses and corresponding reserves, CACs may allocate the following resources for their operations: a) Available funds from time deposits and savings. b) Contributions from their members and pre-members, whether ordinary or extraordinary. c) Credits obtained in the country or abroad. d) Donations. e) Other resources compatible with their nature and objectives.

CHAPTER IV OPERATIONS AND REGULATORY LIMITS

Article 10.- Operations. - CACs may perform, for their members, pre-members and others authorized by the Superintendency, the following financial services and active and passive operations: a. Capture savings and time deposits. b. Grant credits. c. Issue credit and debit cards. d. Make payments of: checks, basic services and remittances, among others. e. Provide electronic payment services. f. Provide virtual asset services. g. Provide buy/sell and/or currency exchange services. h. Fund transfers. i. Buy, discount and accept as collateral government securities. j. Other compatible and necessary operations, according to their nature and development of objectives for the benefit of their members and pre-members, authorized by the Superintendency.

Article 11. Limits on credit operations. - The maximum limit of credits to be granted cannot be greater than ten percent (10%) of the capital calculation base, indicated in Article 8 of this norm. The maximum limit of credits to be granted to members of the Board of Directors and their units of interest, collectively, cannot be greater than twenty-five percent (25%) of the capital calculation base. The Superintendency may reduce this limit based on the risk assessment.

Article 12. Application of Law No. 561. - To CACs that have total assets equal to or greater than one hundred million córdobas (C$100,000,000.00), the provisions of Law No. 561 will be applicable in matters related to the following aspects: distribution of profits regarding the surpluses of cooperatives; coverage of losses; vacancies in the position of directors; deposits, including registration, beneficiaries, interest and its capitalization, unattachable amount, means of proof, statements of account and deposit of minors; interest rate of loans, including moratory interest, supply of information to debtors and prohibitions; legal privileges; banking secrecy; endorsement of credits; subcontracting of internal operations; among other provisions of the aforementioned Law, which the Superintendency may determine.

CHAPTER V RISK MANAGEMENT AND CONTROL MEASURES

Article 13. General guidelines. - CACs must manage the risks inherent to their operations, particularly, credit, liquidity, market, operational, technological and money laundering and/or assets, terrorism financing and financing of the proliferation of weapons of mass destruction risks.

Article 14. Internal auditor. - CACs must have an internal auditor, who must comply with the minimum guidelines established in the regulations governing the matter on internal control and auditing of banks and financial societies.

Article 15. External audit. - CACs must contract annually, at the latest within the third quarter of the year to be audited, the services of External Audit Firms registered with the Superintendency, complying with the selection process, minimum requirements for contracting, follow-up of audit work, authorization and publications, established in the regulations governing the matter on external audit.

CHAPTER VI SUPERVISION, CORRECTIVE MEASURES AND CESSATION OF OPERATIONS

Article 16. Inspections and corrective measures. - In accordance with the current legal framework, the Superintendency may, in the exercise of its attributions, carry out general or partial supervision, in situ or extra situ on CACs; issue any of the corrective measures indicated in Article 88 of Law No. 561 and Article 141 of Law No. 1232, among others, as well as apply the corresponding sanctions according to the gravity of the offense, in accordance with what is provided in Articles 164 and 168 of Law No. 561, in Articles 30 and 36 of Law No. 977 and regulations governing the matter on imposition of fines and on sanctions for non-compliance in matters of management and prevention of terrorism financing risks and financing of the proliferation of weapons of mass destruction.

Article 17. Cessation of operations. - The Superintendency, without prejudice to the corresponding sanctions, will instruct the cessation of operations of the CAC if it is found to be in one or several of the causes established in Article 93 of Law No. 561, insofar as applicable, and in accordance with the procedure established in Articles 94 to 111 of said Law, insofar as applicable; and Article 12 of Law No. 977.

CHAPTER VII TRANSITIONAL AND FINAL PROVISIONS

Article 18. CACs with assets equal to or greater than one hundred million córdobas in operation. - CACs currently in operation and solvent with the requirements established in Law No. 499, that have total assets equal to or greater than one hundred million córdobas (C$100,000,000.00), must within a period of up to one hundred twenty (120) days, counted from the entry into force of this norm, submit a request for registration before the Superintendency. Subsequently, they must present, at the latest within the period determined by the Superintendent, an action plan to adapt to the requirements established in this norm and what is provided by the Superintendency, with compliance dates and responsible parties, which will be approved by the Superintendent. In the case that the CACs referred to in this article request a longer period to comply with the provisions of this norm, the Superintendent will require an action plan with its responsible parties and compliance dates, which will be approved by him. Consequently, the publication of regulatory information of the CACs will be carried out once they comply with all the requirements established in this norm and in the regulation issued by the Superintendency. For CACs that fail to comply with the plan indicated in the previous paragraphs, the Superintendency will have a period of fifteen (15) business days to pronounce itself by resolution, ordering the cessation of their operations, proceeding with the liquidation of the same, in accordance with what is established in Articles 93 to 111 of Law No. 561, insofar as applicable, including the restitution of deposits charged to the assets presented in the balance sheet of the affected CAC. The CACs referred to in this article that do not present a request for inscription before the Superintendency within the period indicated in its first paragraph, must cease operations in accordance with the procedure established in Law No. 499. All of the above, without prejudice to the legal responsibilities in which they might incur according to what is established in Article 167 of Law No. 561, reformed by Law No. 1237.

Article 19. CACs with assets less than one hundred million córdobas in operation. - CACs currently in operation with amounts less than one hundred million córdobas (C$100,000,000.00) in total assets, will only

Page 8 of 8 be obligated to register with the Superintendency and submit the information it requests.

Article 20. Power of the Superintendency. - The Superintendency is empowered to establish the regulatory dispositions that are necessary for the implementation of this norm, as well as the minimum guidelines to be complied with by CACs in matters of risk management, obligations of the Board of Directors and corporate governance, components of the capital calculation base of CACs, as well as their limits and deductions, risk-weighted assets, limits of operations individually or unit of interest, constitution of equity reserves, distribution of cooperative surpluses, accounting treatment, supply of information to the Risk Central of the Superintendency, frequency, form and means of delivery of reports, among other dispositions. Additionally, the Superintendency may determine differentiated criteria for segmentation by asset sizes of CACs to define the application of the regulatory framework adjusted to their size, nature, complexity and volume of their transactions and to their own risk profile.

Article 21. CACs subject to causes of dissolution and liquidation. - For CACs in operation that at the entry into force of this norm are subject to any of the causes of dissolution and liquidation indicated in Law No. 499, they must be liquidated in accordance with what is established in said Law.

Article 22. Validity. - This norm will enter into force from its publication in the media determined by the Superintendency.

(f) legible, Ovidio Reyes R. President of the Directive Council; (f) Illegible, Luis Ángel Montenegro Espinoza, Vice President of the Directive Council; (f) Illegible, Óscar Danilo Mojica Aguirre, Minister of Finance, Owner Member; (f) Illegible, Roberto Rivas, Non-executive Owner Member; (f) Illegible, Hugo Ortega, Non-executive Owner Member, (Up to here the text of the Resolution). (f) Illegible, Ruth Elizabeth Rojas Mercado, Secretary of the Directive Council.