Norm on the Management of Prevention of Money Laundering, Assets or Goods, and Terrorism Financing Risks

NORM ON THE MANAGEMENT OF PREVENTION OF THE RISKS OF MONEY LAUNDERING, GOODS OR ASSETS; AND TERRORISM FINANCING (NORM PLD/FT)1. Managua, Nicaragua

1. This PLD/FT Norm was approved by the Board of Directors of the SIBOIF through Resolution: CD-SIBOIF-524-1-MAR5-2008 dated March 5, 2008, and published in the Official Gazette La Gaceta, editions numbers: 63, 64, 65, 66 and 67 corresponding to the days 4, 7, 8, 9 and 10 of April 2008. The PLD/FT Norm repealed the PLD Norm of April 2002. This PLD/FT Norm has been in effect since April 10, 2008. This PLD/FT Norm was reformed for the first time by the Board of Directors of the SIBOIF through Resolution: CD-SIBOIF-576-1-MAR11-2009 dated March 11, 2009, and these reforms were published in the Official Gazette La Gaceta, edition number 62 corresponding to the day March 31, 2009. This PLD/FT Norm was reformed for the second time by the Board of Directors of the SIBOIF through Resolution: CD-SIBOIF-612-3-ENE27-2010 dated January 27, 2010, and these reforms were published in the Official Gazette La Gaceta, edition number 73 corresponding to the day April 21, 2010. This PLD/FT Norm was reformed for the third time by the Board of Directors of the SIBOIF through Resolution: CD-SIBOIF-721-1-MAR26-2012 dated March 26, 2012, published in the Official Gazette La Gaceta, edition number 80 of the day May 2, 2012. This PLD/FT Norm was reformed for the fourth time by the Board of Directors of the SIBOIF through Resolution: CD-SIBOIF-1479-1-NOV29-2024 dated November 29, 2024. The present text of the PLD/FT Norm published on the SIBOIF website constitutes the official, complete, full and consolidated version with all its reforms.

2 Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing. TABLE OF CONTENTS CONSIDERATIONS ..................................................................................................................................................7 TITLE I.................................................................................................................................................................9 GENERAL PROVISIONS............................................................................................................................9 SINGLE CHAPTER............................................................................................................... 9 SCOPE, OBJECTIVE AND CONCEPTS................................................................................. 9 Art. 1.- Scope................................................................................................................... 9 Art. 2.- Objective..................................................................................................................... 9 Art. 3.- General Concepts............................................................................................. 10 TITLE II.............................................................................................................................................................10 PROVISIONS APPLICABLE TO BANKS AND FINANCIAL INSTITUTIONS..................................................................10 CHAPTER I........................................................................................................................ 10 PREVENTION PROGRAM AND RESPONSIBILITY................................................ 10 Art. 5.- Institutional Responsibility .............................................................................. 12 Art. 6.- Responsibility of the Board of Directors ................................................................. 12 Art. 7.- Integration of the PLD/FT SIPAR ............................................................................. 15 CHAPTER II....................................................................................................................... 17 POLICY OF "DUE DILIGENCE FOR CUSTOMER KNOWLEDGE" (CDD)................................................................................................................................... 17 Art. 8.- CDD Policy........................................................................................................ 17 Art. 9.- Identification........................................................................................................ 19 Art. 10.- Required Documents .................................................................................... 21 Art. 11.- Verification........................................................................................................ 23 Art. 12.- Customer Profile (CP)......................................................................... 26 Art. 13.- Customer File ....................................................................................... 31 Art. 14.- Standard CDD........................................................………………………...…….31 Art. 15.- Enhanced CDD.............................................................................................. 32 Art. 16.- Enhanced CDD Measures .......................................................................... 38 Art. 17.- Simplified CDD .............................................................................................. 40 CHAPTER III...................................................................................................................... 41 COMPLEMENTARY KNOWLEDGE POLICIES............................................ 41 Art. 19.- Policy "Know Your Employee" ................................................................... 41 Art. 20.- Policy "Know Your Correspondent Relationships"........................................ 42 Art. 21.- Policy "Know Your Electronic Fund Transfers" ...................... 42

3 Art. 22.- Policy "Know Your Instrument Buyers"......43 Art. 23.- Policy "Know Your Suppliers"..............................................................44 CHAPTER IV .....................................................................................................................44 MATRICES FOR PLD/FT RISK ASSESSMENT................................................44 Art. 24.- PLD/FT Risk Matrices ...............................................................................44 Art. 25.- New Technologies, Products and Services ......................................................45 CHAPTER V.......................................................................................................................45 MONITORING AND REPORTS..............................................................................................45 Art. 26.- Monitoring, Detection and Security.....................................................................45 Art. 27.- Alert Signals and Indicators........................................................................47 Art. 28.- Determination of suspicion and obligation to present Suspicious Transaction Report (STR)............................................................................................................47 Art. 29.- Special measures for the secure and confidential structuring, handling and presentation of an STR ...................................................................................................49 Art. 30.- Monitoring and Detection of Cash Transactions above the determined threshold......................................................................................................................50 Art. 31.- Obligation to Report Cash Transactions above the determined threshold (CTR)...........................................................................................................50 Art. 32.- CTR Exceptions.........................................................................................50 Art. 33.- Cash Transaction that also qualifies for an STR.............................52 CHAPTER VI .....................................................................................................................52 ARCHIVING AND PRESERVATION OF INFORMATION .....................................................52 Art. 34.- Custody of Information and Supporting Documents ........................................52 Art. 35.- Availability of information and supporting documentation...........................52 Art. 36.- Update and extraction of information........................................................53 CHAPTER VII....................................................................................................................53 IMPLEMENTATION AND CONTROL OF THE PLD/FT SIPAR..................................................53 Art. 37.- Implementation and control function................................................................53 Art. 38.- PLD/FT Prevention Committee............................................................................53 Art. 39.- Integration of the PLD/FT Prevention Committee...................................................53 Art. 40.- Functions of the PLD/FT Prevention Committee...........................................................54 Art. 41.- PLD/FT Risk Prevention Administrator.........................................58 Art. 42.- Appointment....................................................................................................59 Art. 43.- Characteristics of the position.....................................................................................59 Art. 44.- Financial Group Case..................................................................................60 Art. 45.- Objection .............................................................................................................60 Art. 46.- Support Administrative Structure..................................................................60 Art. 47.- Professional Profile of the PLD/FT Prevention Administrator .............................60 Art. 48.- Incompatibilities .............................................................................................61 Art. 49.- Temporary or interim substitution ..........................................................................61 Art. 50.- Removal ...........................................................................................................62 Art. 51.- Functions of the PLD/FT Prevention Administrator..........................................62 CHAPTER VIII...................................................................................................................66 PLD/FT PREVENTION TRAINING.....................................................................66 Art. 52.- PLD/FT Training Program ..............................................................66

4 Art. 53.- Minimum Elements of the Program.....................................................................66 Art. 54.- Statistics and Records on Training.......................................................67 CHAPTER IX .....................................................................................................................68 INSTITUTIONAL CODE OF CONDUCT ..................................................................68 Art. 55.- Incorporation of the PLD/FT SIPAR topic ..............................................................68 Art. 56.- Minimum PLD/FT Aspects of the Code of Conduct ..........................................68 CHAPTER X.......................................................................................................................69 INDEPENDENT AUDIT ON THE PLD/FT SIPAR ............................................69 Art. 57.- Independent Audit.....................................................................................69 Art. 58.- Minimum Audit Functions .......................................................................69 TITLE III............................................................................................................................................................72 PARTICULAR AND EXCEPTION PROVISIONS ..................................................................................72 CHAPTER I........................................................................................................................72 FINANCIAL GROUPS AND CONSOLIDATED PLD/FT RISK MANAGEMENT...............72 Art. 59.- PLD/FT Risk Management .................................................................................72 Art. 60.- Internal Audit of the Controlling Company..................................................73 Art. 61.- Consolidated External Audit of the Financial Group..........................................73 CHAPTER II.......................................................................................................................74 INSURANCE MARKET.................................................................................................74 Art. 62.- Applicability of the PLD/FT Norm in the Insurance Market ........................74 Art. 63.- Exceptions and/or Particularities.......................................................................74 Art. 64.- Subsequent Identification and Verification ..............................................................76 Art. 65.- Enhanced CDD..............................................................................................77 Art. 66.- Simplified CDD ..............................................................................................78 Art. 67.- Relationship of the Insurance and/or Reinsurance company with Insurance intermediaries.........................................................................................................................79 CHAPTER III......................................................................................................................80 SECURITIES MARKET.................................................................................................80 Art. 68.- Applicability of the PLD/FT Norm in the Securities Market.........................80 Art. 69.- Exceptions and/or Particularities.......................................................................80 Art. 70.- Control of Operations......................................................................................82 CHAPTER IV .....................................................................................................................82 WAREHOUSE RECEIPT MARKET.........................................82 Art. 71.- Applicability of the PLD/FT Norm in the Warehouse Receipt Market............................................................82 Art. 72.- Exceptions and/or Particularities.......................................................................83 CHAPTER V.......................................................................................................................84 REPRESENTATIVE OFFICES AND "SECOND-TIER" BANKS .....................84 Art. 73.- Applicability of the Norm to Representative Offices ............................84 Art. 74.- Application of the PLD/FT SIPAR regarding its jurisdiction of origin...................84 Art. 75.- Enhanced CDD..............................................................................................85 Art. 76.- Exceptions and Particularities..........................................................................85 Art. 77. – "Second-Tier" Banks ..............................................................................85 CHAPTER VI .....................................................................................................................86

5 SPECIAL REGIME FINANCIAL COMPANIES..................................................86 Art. 78.- Companies under Consolidated Supervision ..............................................................86 Art. 79.- Exceptions and/or particularities.......................................................................86 TITLE IV............................................................................................................................................................86 TRANSITIONAL AND FINAL PROVISIONS ...............................................................................................86 SINGLE CHAPTER.............................................................................................................86 Art. 80.- Powers of the Superintendent..........................................................................86 Art. 81.- Graduality for the application of some particular provisions of the present Norm.................................................................................................................87 Art. 82.- Repeals......................................................................................................88 Art. 83.- Validity .............................................................................................................88 ANNEXES ...............................................................................................................................................................90 ANNEX 1: GENERAL CONCEPTS FOR THE APPLICATION OF THE PLD/FT NORM ...................91 ANNEX 2: FORMATS FOR THE CUSTOMER PROFILE (CP)..........................................95 i.- Banking and Financial Market.............................................................................95 ii.- Insurance Market................................................................................................107 iii.- Securities Market................................................................................................111 iv.- Warehouse Receipt Market......................................................116 ANNEX 3: ALERT SIGNALS AND INDICATORS..............................................................................121 I.- Common to all Supervised Entities.................................................................121 II.- Specific for the Banking and Financial Market ...................................................128 III.- Specific for the Insurance Market.......................................................................141 IV.- Specific for the Securities Market.......................................................................144 V.- Specific for the Warehouse Receipt Market..............................146 ANNEX 4: INSTRUCTIONS AND FORMAT FOR THE PRESENTATION OF THE SUSPICIOUS TRANSACTION REPORT (STR)..........................................................................................................148 I.- Instructions for the presentation and submission of the Suspicious Transaction Report (STR):.................................................................................................................................148 II.- Format for the presentation of the Suspicious Transaction Report (STR) ...........150 ANNEX 5: MANUAL AND FORMAT FOR THE AUTOMATED PRESENTATION OF CASH TRANSACTION REPORTS (CTR).................................................................................................153 i.- Conceptual aspects (Data Flow) .........................................................................153 ii.- Types of submissions..............................................................................................................154 ii.1 Submissions from Financial Institutions to the SIBOIF................................................154 ii.2 Format of the files............................................................................................154 ii.3 Submissions from the SIBOIF to Supervised Entities..................................................155 iii.- File formats according to submission type ...................................................................156 iii.1: General Anti-Money Laundering Data (PLdD_Datos)........................156 iii.2: Persons (PLdD_Persona) ......................................................................................157 iii.3: Data versus Persons Relationship (PLdD_Datos_Persona) ......................................158 iv.- SIBOIF response files...........................................................................159

6 iv.1: Incidents.............................................................................................................. 159 iv.2: Statistics ............................................................................................................. 160 v.- Annex catalogs........................................................................................................... 160 v.1: General catalogs................................................................................................. 160 Id_reporting_entity ................................................................................................. 167 v.2: Validation Catalog........................................................................................ 168 vi- User Manual for loading the Cash Transaction Report (CTR) ..... 168 vi.1 Introduction............................................................................................................. 168 vi.2 General Description of the System............................................................................. 168 vi.2.1 System Structuring ................................................................................... 169 vii.- Formats with their Instructions..................................................................................... 177 vii.1: Exchange of GNUPG public keys........................................................... 177 vii.2 Request for additions, deletions and changes of access accounts....................................... 182 viii.- GNUPG Manual................................................................................................... 186 viii.1 Introduction........................................................................................................... 186 viii.2 Generation of keys ....................................................................................... 187 viii.3 Encrypt files........................................................................................................ 189 viii.4 Decrypt files.................................................................................................. 189 viii.5 Generate the public key......................................................................................... 190 viii.6 Importing a public key to your keyring............................................................. 190

7 NORM ON THE MANAGEMENT OF PREVENTION OF THE RISKS OF MONEY LAUNDERING, GOODS OR ASSETS; AND TERRORISM FINANCING The Board of Directors of the Superintendent of Banks and Other Financial Institutions resolves to approve and issue the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing, according to the considerations, legal basis and content as follows: CONSIDERATIONS

The Board of Directors of the Superintendent of Banks and Other Financial Institutions,

CONSIDERING:

I. That the Constitution of the Republic establishes in Article 114 that the State has the exclusive attribute to regulate and supervise the financial system, which includes the banking, securities, insurance and other financial markets, with the purpose of guaranteeing the stability of the financial system and the protection of the public interest;

II. That the Organic Law of the Superintendent of Banks and Other Financial Institutions, in its Article 2, establishes that the Superintendent is responsible for regulating, supervising and sanctioning the entities that make up the financial system, as well as for issuing the norms that regulate their operation;

III. That the Law 380, Organic Law of the Financial System, in its Article 10, numeral 12, grants the Superintendent the faculty to issue the norms that regulate the prevention of money laundering and terrorism financing;

IV. That the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, signed in Vienna on December 20, 1988, and ratified by Nicaragua through Legislative Decree No. 14-93, published in La Gaceta No. 238 of December 28, 1993, establishes in its Article 3, numeral 1, the obligation of the States to criminalize the laundering of proceeds from drug trafficking;

V. That the United Nations Convention against Transnational Organized Crime, signed in Palermo on November 15, 2000, and ratified by Nicaragua through Legislative Decree No. 34-02, published in La Gaceta No. 220 of November 26, 2002, establishes in its Article 6 the obligation to criminalize money laundering;

VI. That the International Convention for the Suppression of the Financing of Terrorism, signed in New York on September 9, 1999, and ratified by Nicaragua through Legislative Decree No. 35- 02, published in La Gaceta No. 221 of November 27, 2002, establishes in its Article 2 the obligation to criminalize the financing of terrorism;

VII. That the Financial Action Task Force (FATF), in its Recommendations, establishes the obligation of countries to implement measures to prevent money laundering and terrorism financing, including the establishment of a regulatory framework for the financial sector;

VIII. That the Inter-American Drug Control Commission (CICAD), in its documents, recommends the adoption of measures to prevent money laundering and terrorism financing, including the implementation of a regulatory framework for the financial sector;

IX. That the Central American Integration System (SICA), through the Central American Agreement on the Prevention of Money Laundering and Terrorism Financing, signed in Managua on November 13, 2003, and ratified by Nicaragua through Legislative Decree No. 103-04, published in La Gaceta No. 224 of November 30, 2004, establishes the obligation of the member states to adopt measures to prevent money laundering and terrorism financing;

X. That the Superintendence of Banks and Other Financial Institutions, through Resolution CD-SIBOIF-524-1-MAR5-2008 of March 5, 2008, approved the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing, which repealed the Norm on the Prevention of Money Laundering of April 2002;

XI. That the Superintendence of Banks and Other Financial Institutions, through Resolution CD-SIBOIF-576-1-MAR11-2009 of March 11, 2009, approved the first reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing;

XII. That the Superintendence of Banks and Other Financial Institutions, through Resolution CD-SIBOIF-612-3-ENE27-2010 of January 27, 2010, approved the second reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing;

XIII. That the Superintendence of Banks and Other Financial Institutions, through Resolution CD-SIBOIF-721-1-MAR26-2012 of March 26, 2012, approved the third reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing;

XIV. That the Superintendence of Banks and Other Financial Institutions, through Resolution CD-SIBOIF-1479-1-NOV29-2024 of November 29, 2024, approved the fourth reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing;

XV. That it is necessary to update the regulatory framework for the prevention of money laundering and terrorism financing, in order to align it with international standards and best practices;

XVI. That it is necessary to strengthen the supervision and control mechanisms of the financial system, in order to guarantee the integrity and stability of the financial system;

XVII. That it is necessary to establish clear and precise obligations for the supervised entities, in order to facilitate the compliance with the regulations and the supervision by the Superintendence;

XVIII. That it is necessary to establish sanctions for the non-compliance with the regulations, in order to guarantee the effectiveness of the regulatory framework;

XIX. That the present Norm is issued in exercise of the faculties conferred by the Constitution, the Organic Law of the Superintendent of Banks and Other Financial Institutions, and the Law 380, Organic Law of the Financial System;

RESOLVES:

To approve and issue the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing, which is attached as Annex 1 of this Resolution.

Managua, Nicaragua, November 29, 2024.

The Board of Directors

Superintendent of Banks and Other Financial Institutions

ANNEX 1

NORM ON THE MANAGEMENT OF PREVENTION OF THE RISKS OF MONEY LAUNDERING, GOODS OR ASSETS; AND TERRORISM FINANCING

TITLE I GENERAL PROVISIONS

SINGLE CHAPTER SCOPE, OBJECTIVE AND CONCEPTS

Art. 1.- Scope. This Norm regulates the management of prevention of the risks of money laundering and terrorism financing for the entities supervised by the Superintendent of Banks and Other Financial Institutions (SIBOIF), including banks, financial institutions, insurance companies, securities companies, warehouse receipt companies, representative offices, second-tier banks, and special regime financial companies.

Art. 2.- Objective. The objective of this Norm is to establish the minimum requirements for the management of prevention of the risks of money laundering and terrorism financing, in order to guarantee the integrity and stability of the financial system, and to comply with international standards and best practices.

Art. 3.- General Concepts. For the purposes of this Norm, the following concepts are defined:

a) Money Laundering: The process by which the proceeds of crime are disguised to appear as legitimate income.

b) Terrorism Financing: The act of providing or collecting funds, by any means, directly or indirectly, with the intention that they be used or knowing that they will be used, in full or in part, to carry out terrorist acts.

c) Customer Due Diligence (CDD): The set of measures that the supervised entity must apply to identify and verify the identity of its customers, and to understand the nature of their business relationship.

d) Suspicious Transaction Report (STR): The report that the supervised entity must present to the SIBOIF when it detects transactions that may be related to money laundering or terrorism financing.

e) Cash Transaction Report (CTR): The report that the supervised entity must present to the SIBOIF for cash transactions that exceed the established threshold.

f) Prevention System of the Risks of Money Laundering and Terrorism Financing (SIPAR PLD/FT): The set of policies, procedures, controls, and systems that the supervised entity must implement to prevent and detect money laundering and terrorism financing.

g) Risk Assessment: The process by which the supervised entity identifies, analyzes, and evaluates the risks of money laundering and terrorism financing to which it is exposed.

h) Enhanced Due Diligence (EDD): The additional measures that the supervised entity must apply to customers or transactions that present a higher risk of money laundering or terrorism financing.

i) Simplified Due Diligence (SDD): The reduced measures that the supervised entity may apply to customers or transactions that present a lower risk of money laundering or terrorism financing.

j) Politically Exposed Person (PEP): An individual who is or has been entrusted with prominent public functions by a foreign country, or by a national country, and their family members and close associates.

k) Correspondent Banking: The relationship between two financial institutions, where one (institution of response) provides banking services to the other (institution of request), including the provision of accounts and the execution of transactions.

l) Electronic Fund Transfer (EFT): The transfer of funds, by electronic means, from one account to another, without the physical movement of cash.

m) Warehouse Receipt: A document issued by a warehouse operator that certifies the deposit of goods in a warehouse, and that can be used as collateral for loans or as a tradable instrument.

n) Insurance Intermediary: An individual or entity that acts as an intermediary between the insurance company and the insured, including brokers, agents, and advisors.

o) Securities: Financial instruments that represent a share in the ownership of a company or a debt owed by a government or corporation.

p) Financial Group: A group of companies that are controlled by a controlling company, and that operate in the financial sector.

q) Consolidated Supervision: The supervision of the financial group as a whole, including the supervision of the controlling company and its subsidiaries.

r) Second-Tier Bank: A bank that operates in a jurisdiction other than its jurisdiction of origin, and that is supervised by the SIBOIF.

s) Representative Office: An office of a foreign financial institution that operates in Nicaragua, and that does not carry out banking operations.

t) Special Regime Financial Company: A financial company that operates under a special regime established by law.

u) Supervised Entity: Any entity that is subject to the supervision of the SIBOIF.

v) Superintendent: The Superintendent of Banks and Other Financial Institutions.

w) Board of Directors: The Board of Directors of the SIBOIF.

x) Resolution: The resolution issued by the Board of Directors of the SIBOIF.

y) Official Gazette: The Official Gazette La Gaceta.

z) Norm: The Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing.

TITLE II PROVISIONS APPLICABLE TO BANKS AND FINANCIAL INSTITUTIONS

CHAPTER I PREVENTION PROGRAM AND RESPONSIBILITY

Art. 5.- Institutional Responsibility. The supervised entity is responsible for the implementation and maintenance of the Prevention System of the Risks of Money Laundering and Terrorism Financing (SIPAR PLD/FT), and for ensuring compliance with the provisions of this Norm.

Art. 6.- Responsibility of the Board of Directors. The Board of Directors of the supervised entity is responsible for:

a) Approving the policies and procedures of the SIPAR PLD/FT;

b) Appointing the PLD/FT Risk Prevention Administrator;

c) Overseeing the implementation and maintenance of the SIPAR PLD/FT;

d) Ensuring that the supervised entity has sufficient resources to implement the SIPAR PLD/FT;

e) Reviewing and approving the annual plan of the SIPAR PLD/FT;

f) Reviewing and approving the reports of the PLD/FT Risk Prevention Administrator;

g) Reviewing and approving the reports of the PLD/FT Prevention Committee;

h) Reviewing and approving the independent audit reports on the SIPAR PLD/FT;

i) Ensuring that the supervised entity complies with the provisions of this Norm;

j) Ensuring that the supervised entity reports suspicious transactions and cash transactions to the SIBOIF;

k) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing;

l) Ensuring that the supervised entity provides training to its employees on the prevention of money laundering and terrorism financing;

m) Ensuring that the supervised entity maintains a code of conduct that includes the prevention of money laundering and terrorism financing;

n) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its correspondent relationships;

o) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its electronic fund transfers;

p) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with instrument buyers;

q) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with suppliers;

r) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with new technologies, products and services;

s) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with cash;

t) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with customers;

u) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with employees;

v) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with correspondents;

w) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with electronic fund transfers;

x) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with instrument buyers;

y) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with suppliers;

z) Ensuring that the supervised entity implements the measures to prevent money laundering and terrorism financing in its transactions with new technologies, products and services.

Art. 7.- Integration of the PLD/FT SIPAR. The Prevention System of the Risks of Money Laundering and Terrorism Financing (SIPAR PLD/FT) must include, at least, the following components:

a) Policies and procedures for the prevention of money laundering and terrorism financing;

b) Customer Due Diligence (CDD) policy;

c) Risk assessment matrices;

d) Monitoring and detection systems;

e) Reporting systems for suspicious transactions and cash transactions;

f) Archiving and preservation of information;

g) Implementation and control function;

h) PLD/FT Prevention Committee;

i) PLD/FT Risk Prevention Administrator;

j) Training program;

k) Code of conduct;

l) Independent audit.

CHAPTER II POLICY OF "DUE DILIGENCE FOR CUSTOMER KNOWLEDGE" (CDD)

Art. 8.- CDD Policy. The supervised entity must implement a Customer Due Diligence (CDD) policy, which must include, at least, the following measures:

a) Identification of the customer;

b) Verification of the identity of the customer;

c) Understanding the nature of the business relationship;

d) Identification of the beneficial owner;

e) Risk assessment of the customer;

f) Application of Enhanced Due Diligence (EDD) measures for high-risk customers;

g) Application of Simplified Due Diligence (SDD) measures for low-risk customers;

h) Ongoing monitoring of the business relationship;

i) Updating of the customer information;

j) Refusal or termination of the business relationship when the customer does not comply with the CDD policy.

Art. 9.- Identification. The supervised entity must identify the customer before establishing a business relationship or carrying out an occasional transaction that exceeds the established threshold. The identification must include, at least, the following information:

a) For natural persons:

i) Full name;

ii) National identification number or passport number;

iii) Date of birth;

iv) Nationality;

v) Address;

vi) Occupation;

vii) Source of funds;

viii) Purpose of the business relationship.

b) For legal persons:

i) Name;

ii) Registration number;

iii) Legal form;

iv) Address;

v) Date of incorporation;

vi) Object of the company;

vii) Name and identification of the legal representative;

viii) Name and identification of the beneficial owner;

ix) Source of funds;

x) Purpose of the business relationship.

Art. 10.- Required Documents. The supervised entity must require the following documents to identify and verify the identity of the customer:

a) For natural persons:

i) National identification card or passport;

ii) Proof of address;

iii) Proof of occupation;

iv) Proof of source of funds.

b) For legal persons:

i) Certificate of incorporation;

ii) Bylaws;

iii) Resolution appointing the legal representative;

iv) List of shareholders;

v) Certificate of good standing;

vi) Proof of address;

vii) Proof of source of funds.

Art. 11.- Verification. The supervised entity must verify the identity of the customer using reliable and independent source documents, data or information. The verification must be carried out before establishing the business relationship or carrying out the occasional transaction. In cases where it is not possible to verify the identity of the customer before establishing the business relationship or carrying out the occasional transaction, the supervised entity must carry out the verification as soon as possible, and must not carry out transactions that are inconsistent with its knowledge of the customer, its business or the purpose of the intended transaction, until the verification has been completed.

Art. 12.- Customer Profile (CP). The supervised entity must create a Customer Profile (CP) for each customer, which must include, at least, the following information:

a) Identification information;

b) Verification information;

c) Risk assessment;

d) Nature of the business relationship;

e) Source of funds;

f) Purpose of the business relationship;

g) Beneficial owner;

h) Correspondent relationships;

i) Electronic fund transfers;

j) Instrument buyers;

k) Suppliers;

l) New technologies, products and services;

m) Cash transactions;

n) Employees;

o) Correspondents;

p) Electronic fund transfers;

q) Instrument buyers;

r) Suppliers;

s) New technologies, products and services.

Art. 13.- Customer File. The supervised entity must maintain a Customer File for each customer, which must include, at least, the following documents:

a) Identification documents;

b) Verification documents;

c) Risk assessment documents;

d) Business relationship documents;

e) Source of funds documents;

f) Purpose of the business relationship documents;

g) Beneficial owner documents;

h) Correspondent relationship documents;

i) Electronic fund transfer documents;

j) Instrument buyer documents;

k) Supplier documents;

l) New technology, product and service documents;

m) Cash transaction documents;

n) Employee documents;

o) Correspondent documents;

p) Electronic fund transfer documents;

q) Instrument buyer documents;

r) Supplier documents;

s) New technology, product and service documents.

Art. 14.- Standard CDD. Standard Customer Due Diligence (CDD) must be applied to customers that present a low or medium risk of money laundering or terrorism financing. Standard CDD must include, at least, the measures established in Articles 9, 10, 11 and 12 of this Norm.

Art. 15.- Enhanced CDD. Enhanced Customer Due Diligence (EDD) must be applied to customers that present a high risk of money laundering or terrorism financing. Enhanced CDD must include, at least, the following additional measures:

a) Obtaining additional information on the customer;

b) Obtaining additional information on the source of funds;

c) Obtaining additional information on the source of wealth;

d) Obtaining additional information on the purpose of the business relationship;

e) Obtaining additional information on the beneficial owner;

f) Obtaining additional information on the correspondent relationships;

g) Obtaining additional information on the electronic fund transfers;

h) Obtaining additional information on the instrument buyers;

i) Obtaining additional information on the suppliers;

j) Obtaining additional information on the new technologies, products and services;

k) Obtaining additional information on the cash transactions;

l) Obtaining additional information on the employees;

m) Obtaining additional information on the correspondents;

n) Obtaining additional information on the electronic fund transfers;

o) Obtaining additional information on the instrument buyers;

p) Obtaining additional information on the suppliers;

q) Obtaining additional information on the new technologies, products and services.

Art. 16.- Enhanced CDD Measures. The enhanced CDD measures must include, at least, the following:

a) Obtaining approval from the Board of Directors or senior management to establish or continue the business relationship;

b) Obtaining additional information on the customer;

c) Obtaining additional information on the source of funds;

d) Obtaining additional information on the source of wealth;

e) Obtaining additional information on the purpose of the business relationship;

f) Obtaining additional information on the beneficial owner;

g) Obtaining additional information on the correspondent relationships;

h) Obtaining additional information on the electronic fund transfers;

i) Obtaining additional information on the instrument buyers;

j) Obtaining additional information on the suppliers;

k) Obtaining additional information on the new technologies, products and services;

l) Obtaining additional information on the cash transactions;

m) Obtaining additional information on the employees;

n) Obtaining additional information on the correspondents;

o) Obtaining additional information on the electronic fund transfers;

p) Obtaining additional information on the instrument buyers;

q) Obtaining additional information on the suppliers;

r) Obtaining additional information on the new technologies, products and services.

Art. 17.- Simplified CDD. Simplified Customer Due Diligence (SDD) may be applied to customers that present a low risk of money laundering or terrorism financing. Simplified CDD must include, at least, the following measures:

a) Identification of the customer;

b) Verification of the identity of the customer;

c) Understanding the nature of the business relationship;

d) Risk assessment of the customer;

e) Ongoing monitoring of the business relationship;

f) Updating of the customer information.

CHAPTER III COMPLEMENTARY KNOWLEDGE POLICIES

Art. 19.- Policy "Know Your Employee". The supervised entity must implement a policy to know its employees, which must include, at least, the following measures:

a) Identification of the employee;

b) Verification of the identity of the employee;

c) Background check of the employee;

d) Risk assessment of the employee;

e) Training of the employee on the prevention of money laundering and terrorism financing;

f) Code of conduct for the employee;

g) Monitoring of the employee;

h) Reporting of suspicious activities by the employee.

Art. 20.- Policy "Know Your Correspondent Relationships". The supervised entity must implement a policy to know its correspondent relationships, which must include, at least, the following measures:

a) Identification of the correspondent;

b) Verification of the identity of the correspondent;

c) Risk assessment of the correspondent;

d) Understanding the nature of the correspondent relationship;

e) Monitoring of the correspondent relationship;

f) Reporting of suspicious activities in the correspondent relationship.

Art. 21.- Policy "Know Your Electronic Fund Transfers". The supervised entity must implement a policy to know its electronic fund transfers, which must include, at least, the following measures:

a) Identification of the sender and receiver of the electronic fund transfer;

b) Verification of the identity of the sender and receiver;

c) Risk assessment of the electronic fund transfer;

d) Monitoring of the electronic fund transfer;

e) Reporting of suspicious electronic fund transfers.

Art. 22.- Policy "Know Your Instrument Buyers". The supervised entity must implement a policy to know its instrument buyers, which must include, at least, the following measures:

a) Identification of the instrument buyer;

b) Verification of the identity of the instrument buyer;

c) Risk assessment of the instrument buyer;

d) Understanding the nature of the relationship with the instrument buyer;

e) Monitoring of the relationship with the instrument buyer;

f) Reporting of suspicious activities with the instrument buyer.

Art. 23.- Policy "Know Your Suppliers". The supervised entity must implement a policy to know its suppliers, which must include, at least, the following measures:

a) Identification of the supplier;

b) Verification of the identity of the supplier;

c) Risk assessment of the supplier;

d) Understanding the nature of the relationship with the supplier;

e) Monitoring of the relationship with the supplier;

f) Reporting of suspicious activities with the supplier.

CHAPTER IV MATRICES FOR PLD/FT RISK ASSESSMENT

Art. 24.- PLD/FT Risk Matrices. The supervised entity must implement risk assessment matrices to identify, analyze and evaluate the risks of money laundering and terrorism financing to which it is exposed. The risk assessment matrices must include, at least, the following factors:

a) Customer risk;

b) Product and service risk;

c) Geographic risk;

d) Channel risk;

e) Transaction risk.

Art. 25.- New Technologies, Products and Services. The supervised entity must assess the risks associated with new technologies, products and services, and must implement measures to prevent money laundering and terrorism financing.

CHAPTER V MONITORING AND REPORTS

Art. 26.- Monitoring, Detection and Security. The supervised entity must implement monitoring and detection systems to identify suspicious transactions and cash transactions. The monitoring and detection systems must include, at least, the following measures:

a) Transaction monitoring;

b) Customer monitoring;

c) Employee monitoring;

d) Correspondent relationship monitoring;

e) Electronic fund transfer monitoring;

f) Instrument buyer monitoring;

g) Supplier monitoring;

h) New technology, product and service monitoring;

i) Cash transaction monitoring.

Art. 27.- Alert Signals and Indicators. The supervised entity must establish alert signals and indicators to identify suspicious transactions and cash transactions. The alert signals and indicators must be included in Annex 3 of this Norm.

Art. 28.- Determination of suspicion and obligation to present Suspicious Transaction Report (STR). The supervised entity must present a Suspicious Transaction Report (STR) to the SIBOIF when it detects transactions that may be related to money laundering or terrorism financing. The STR must be presented within the established timeframe.

Art. 29.- Special measures for the secure and confidential structuring, handling and presentation of an STR. The supervised entity must implement special measures to ensure the secure and confidential structuring, handling and presentation of the STR. The measures must include, at least, the following:

a) Encryption of the STR;

b) Secure transmission of the STR;

c) Confidential handling of the STR;

d) Restricted access to the STR.

Art. 30.- Monitoring and Detection of Cash Transactions above the determined threshold. The supervised entity must monitor and detect cash transactions that exceed the established threshold. The threshold must be established by the SIBOIF.

Art. 31.- Obligation to Report Cash Transactions above the determined threshold (CTR). The supervised entity must present a Cash Transaction Report (CTR) to the SIBOIF for cash transactions that exceed the established threshold. The CTR must be presented within the established timeframe.

Art. 32.- CTR Exceptions. The following transactions are exempt from the obligation to present a CTR:

a) Transfers between accounts of the same customer;

b) Transfers between accounts of the same legal entity;

c) Transfers between accounts of affiliated companies;

d) Transfers between accounts of the same financial group;

e) Transfers between accounts of the same correspondent;

f) Transfers between accounts of the same electronic fund transfer provider;

g) Transfers between accounts of the same instrument buyer;

h) Transfers between accounts of the same supplier;

i) Transfers between accounts of the same new technology, product or service provider.

Art. 33.- Cash Transaction that also qualifies for an STR. A cash transaction that exceeds the established threshold and that also presents suspicious characteristics must be reported as both a CTR and an STR.

CHAPTER VI ARCHIVING AND PRESERVATION OF INFORMATION

Art. 34.- Custody of Information and Supporting Documents. The supervised entity must maintain the custody of the information and supporting documents related to the prevention of money laundering and terrorism financing for a period of at least ten (10) years from the date of the transaction or the end of the business relationship.

Art. 35.- Availability of information and supporting documentation. The supervised entity must make the information and supporting documentation available to the SIBOIF upon request.

Art. 36.- Update and extraction of information. The supervised entity must update and extract the information and supporting documentation as necessary to comply with the provisions of this Norm.

CHAPTER VII IMPLEMENTATION AND CONTROL OF THE PLD/FT SIPAR

Art. 37.- Implementation and control function. The supervised entity must implement a function for the implementation and control of the PLD/FT SIPAR. The function must be independent from the business units.

Art. 38.- PLD/FT Prevention Committee. The supervised entity must establish a PLD/FT Prevention Committee. The Committee must be responsible for overseeing the implementation and maintenance of the PLD/FT SIPAR.

Art. 39.- Integration of the PLD/FT Prevention Committee. The PLD/FT Prevention Committee must be integrated by, at least, the following members:

a) The PLD/FT Risk Prevention Administrator;

b) The Head of Compliance;

c) The Head of Internal Audit;

d) The Head of Risk Management;

e) The Head of Legal;

f) The Head of Human Resources;

g) The Head of Information Technology.

Art. 40.- Functions of the PLD/FT Prevention Committee. The PLD/FT Prevention Committee must have, at least, the following functions:

a) Overseeing the implementation and maintenance of the PLD/FT SIPAR;

b) Reviewing and approving the policies and procedures of the PLD/FT SIPAR;

c) Reviewing and approving the annual plan of the PLD/FT SIPAR;

d) Reviewing and approving the reports of the PLD/FT Risk Prevention Administrator;

e) Reviewing and approving the independent audit reports on the PLD/FT SIPAR;

f) Reviewing and approving the training program on the prevention of money laundering and terrorism financing;

g) Reviewing and approving the code of conduct on the prevention of money laundering and terrorism financing;

h) Reviewing and approving the risk assessment matrices;

i) Reviewing and approving the customer due diligence policy;

j) Reviewing and approving the suspicious transaction reporting policy;

k) Reviewing and approving the cash transaction reporting policy;

l) Reviewing and approving the archiving and preservation policy;

m) Reviewing and approving the monitoring and detection policy;

n) Reviewing and approving the correspondent relationship policy;

o) Reviewing and approving the electronic fund transfer policy;

p) Reviewing and approving the instrument buyer policy;

q) Reviewing and approving the supplier policy;

r) Reviewing and approving the new technology, product and service policy.

Art. 41.- PLD/FT Risk Prevention Administrator. The supervised entity must appoint a PLD/FT Risk Prevention Administrator. The Administrator must be responsible for the implementation and maintenance of the PLD/FT SIPAR.

Art. 42.- Appointment. The PLD/FT Risk Prevention Administrator must be appointed by the Board of Directors of the supervised entity. The appointment must be reported to the SIBOIF.

Art. 43.- Characteristics of the position. The PLD/FT Risk Prevention Administrator must have, at least, the following characteristics:

a) Professional degree in law, accounting, finance, economics or related fields;

b) At least five (5) years of experience in the financial sector;

c) At least three (3) years of experience in the prevention of money laundering and terrorism financing;

d) Knowledge of the regulations on the prevention of money laundering and terrorism financing;

e) Knowledge of international standards on the prevention of money laundering and terrorism financing;

f) Knowledge of the risks of money laundering and terrorism financing;

g) Knowledge of the monitoring and detection techniques;

h) Knowledge of the reporting requirements;

i) Knowledge of the archiving and preservation requirements;

j) Knowledge of the training requirements;

k) Knowledge of the code of conduct requirements;

l) Knowledge of the independent audit requirements.

Art. 44.- Financial Group Case. In the case of a financial group, the PLD/FT Risk Prevention Administrator must be appointed at the level of the controlling company, and must oversee the implementation and maintenance of the PLD/FT SIPAR of the entire group.

Art. 45.- Objection. The SIBOIF may object to the appointment of the PLD/FT Risk Prevention Administrator if it considers that the candidate does not meet the requirements established in this Norm.

Art. 46.- Support Administrative Structure. The supervised entity must provide the PLD/FT Risk Prevention Administrator with a support administrative structure, which must include, at least, the following:

a) Staff dedicated to the prevention of money laundering and terrorism financing;

b) Information technology systems;

c) Training resources;

d) External advisors.

Art. 47.- Professional Profile of the PLD/FT Prevention Administrator. The professional profile of the PLD/FT Prevention Administrator must be included in Annex 1 of this Norm.

Art. 48.- Incompatibilities. The PLD/FT Risk Prevention Administrator cannot hold any other position in the supervised entity that involves direct responsibility for the business units.

Art. 49.- Temporary or interim substitution. In case of temporary or interim absence of the PLD/FT Risk Prevention Administrator, the Board of Directors must appoint a substitute who meets the requirements established in this Norm.

Art. 50.- Removal. The PLD/FT Risk Prevention Administrator can be removed by the Board of Directors of the supervised entity. The removal must be reported to the SIBOIF.

Art. 51.- Functions of the PLD/FT Prevention Administrator. The PLD/FT Risk Prevention Administrator must have, at least, the following functions:

a) Implementing and maintaining the PLD/FT SIPAR;

b) Overseeing the implementation of the customer due diligence policy;

c) Overseeing the implementation of the risk assessment matrices;

d) Overseeing the implementation of the monitoring and detection systems;

e) Overseeing the implementation of the reporting systems;

f) Overseeing the implementation of the archiving and preservation systems;

g) Overseeing the implementation of the training program;

h) Overseeing the implementation of the code of conduct;

i) Overseeing the implementation of the independent audit;

j) Reporting to the Board of Directors on the implementation and maintenance of the PLD/FT SIPAR;

k) Reporting to the SIBOIF on the implementation and maintenance of the PLD/FT SIPAR;

l) Coordinating with the PLD/FT Prevention Committee;

m) Coordinating with the internal audit function;

n) Coordinating with the external audit function;

o) Coordinating with the business units;

p) Coordinating with the SIBOIF.

CHAPTER VIII PLD/FT PREVENTION TRAINING

Art. 52.- PLD/FT Training Program. The supervised entity must implement a training program on the prevention of money laundering and terrorism financing. The program must be directed to all employees of the supervised entity.

Art. 53.- Minimum Elements of the Program. The training program must include, at least, the following elements:

a) Objectives of the program;

b) Target audience;

c) Content of the program;

d) Methodology of the program;

e) Frequency of the program;

f) Evaluation of the program;

g) Records of the program.

Art. 54.- Statistics and Records on Training. The supervised entity must maintain statistics and records on the training program. The statistics and records must be reported to the SIBOIF upon request.

CHAPTER IX INSTITUTIONAL CODE OF CONDUCT

Art. 55.- Incorporation of the PLD/FT SIPAR topic. The supervised entity must incorporate the prevention of money laundering and terrorism financing into its institutional code of conduct.

Art. 56.- Minimum PLD/FT Aspects of the Code of Conduct. The code of conduct must include, at least, the following aspects:

a) Obligation to comply with the regulations on the prevention of money laundering and terrorism financing;

b) Obligation to report suspicious transactions;

c) Obligation to maintain confidentiality;

d) Obligation to cooperate with the SIBOIF;

e) Sanctions for non-compliance.

CHAPTER X INDEPENDENT AUDIT ON THE PLD/FT SIPAR

Art. 57.- Independent Audit. The supervised entity must implement an independent audit on the PLD/FT SIPAR. The audit must be carried out by an independent auditor.

Art. 58.- Minimum Audit Functions. The independent audit must include, at least, the following functions:

a) Evaluation of the design and implementation of the PLD/FT SIPAR;

b) Evaluation of the effectiveness of the PLD/FT SIPAR;

c) Identification of weaknesses and deficiencies in the PLD/FT SIPAR;

d) Recommendations for improvement of the PLD/FT SIPAR;

e) Reporting to the Board of Directors and the SIBOIF.

TITLE III PARTICULAR AND EXCEPTION PROVISIONS

CHAPTER I FINANCIAL GROUPS AND CONSOLIDATED PLD/FT RISK MANAGEMENT

Art. 59.- PLD/FT Risk Management. The financial group must implement a consolidated PLD/FT risk management system. The system must include, at least, the following components:

a) Policies and procedures for the prevention of money laundering and terrorism financing;

b) Risk assessment matrices;

c) Monitoring and detection systems;

d) Reporting systems;

e) Archiving and preservation systems;

f) Training program;

g) Code of conduct;

h) Independent audit.

Art. 60.- Internal Audit of the Controlling Company. The internal audit of the controlling company must include the evaluation of the PLD/FT SIPAR of the entire group.

Art. 61.- Consolidated External Audit of the Financial Group. The external audit of the financial group must include the evaluation of the PLD/FT SIPAR of the entire group.

CHAPTER II INSURANCE MARKET

Art. 62.- Applicability of the PLD/FT Norm in the Insurance Market. The PLD/FT Norm applies to the insurance market, including insurance companies, reinsurance companies, and insurance intermediaries.

Art. 63.- Exceptions and/or Particularities. The following exceptions and/or particularities apply to the insurance market:

a) Simplified CDD may be applied to certain insurance products;

b) Enhanced CDD must be applied to high-risk insurance products;

c) Suspicious transaction reporting must be implemented;

d) Cash transaction reporting must be implemented.

Art. 64.- Subsequent Identification and Verification. In cases where the identification and verification of the customer cannot be carried out before the establishment of the insurance relationship, the insurance company must carry out the identification and verification as soon as possible.

Art. 65.- Enhanced CDD. Enhanced CDD must be applied to high-risk insurance products, including those related to money laundering or terrorism financing.

Art. 66.- Simplified CDD. Simplified CDD may be applied to low-risk insurance products, including those with low premiums and short terms.

Art. 67.- Relationship of the Insurance and/or Reinsurance company with Insurance intermediaries. The insurance and/or reinsurance company must implement measures to prevent money laundering and terrorism financing in its relationship with insurance intermediaries. The measures must include, at least, the following:

a) Identification and verification of the intermediary;

b) Risk assessment of the intermediary;

c) Monitoring of the intermediary;

d) Reporting of suspicious activities by the intermediary.

CHAPTER III SECURITIES MARKET

Art. 68.- Applicability of the PLD/FT Norm in the Securities Market. The PLD/FT Norm applies to the securities market, including securities companies, brokers, and dealers.

Art. 69.- Exceptions and/or Particularities. The following exceptions and/or particularities apply to the securities market:

a) Simplified CDD may be applied to certain securities products;

b) Enhanced CDD must be applied to high-risk securities products;

c) Suspicious transaction reporting must be implemented;

d) Cash transaction reporting must be implemented.

Art. 70.- Control of Operations. The securities company must implement controls to prevent money laundering and terrorism financing in its operations. The controls must include, at least, the following:

a) Identification and verification of the customer;

b) Risk assessment of the customer;

c) Monitoring of the customer;

d) Reporting of suspicious transactions.

CHAPTER IV WAREHOUSE RECEIPT MARKET

Art. 71.- Applicability of the PLD/FT Norm in the Warehouse Receipt Market. The PLD/FT Norm applies to the warehouse receipt market, including warehouse operators and warehouse receipt companies.

Art. 72.- Exceptions and/or Particularities. The following exceptions and/or particularities apply to the warehouse receipt market:

a) Simplified CDD may be applied to certain warehouse receipt products;

b) Enhanced CDD must be applied to high-risk warehouse receipt products;

c) Suspicious transaction reporting must be implemented;

d) Cash transaction reporting must be implemented.

CHAPTER V REPRESENTATIVE OFFICES AND "SECOND-TIER" BANKS

Art. 73.- Applicability of the Norm to Representative Offices. The PLD/FT Norm applies to representative offices. However, representative offices are exempt from the obligation to present suspicious transaction reports and cash transaction reports.

Art. 74.- Application of the PLD/FT SIPAR regarding its jurisdiction of origin. The representative office must apply the PLD/FT SIPAR of its jurisdiction of origin, and must comply with the requirements of this Norm to the extent possible.

Art. 75.- Enhanced CDD. Enhanced CDD must be applied to high-risk customers of the representative office.

Art. 76.- Exceptions and Particularities. The following exceptions and particularities apply to representative offices:

a) Simplified CDD may be applied to low-risk customers;

b) Suspicious transaction reporting is not required;

c) Cash transaction reporting is not required.

Art. 77. – "Second-Tier" Banks. "Second-tier" banks must comply with the requirements of this Norm. "Second-tier" banks must implement a PLD/FT SIPAR that is consistent with the requirements of this Norm.

CHAPTER VI SPECIAL REGIME FINANCIAL COMPANIES

Art. 78.- Companies under Consolidated Supervision. Special regime financial companies under consolidated supervision must comply with the requirements of this Norm.

Art. 79.- Exceptions and/or particularities. The following exceptions and/or particularities apply to special regime financial companies:

a) Simplified CDD may be applied to certain products;

b) Enhanced CDD must be applied to high-risk products;

c) Suspicious transaction reporting must be implemented;

d) Cash transaction reporting must be implemented.

TITLE IV TRANSITIONAL AND FINAL PROVISIONS

SINGLE CHAPTER

Art. 80.- Powers of the Superintendent. The Superintendent has the power to interpret this Norm, to issue complementary norms, and to establish sanctions for non-compliance.

Art. 81.- Graduality for the application of some particular provisions of the present Norm. The supervised entities must comply with the provisions of this Norm within the established timeframe. The timeframe must be established by the SIBOIF.

Art. 82.- Repeals. The following norms are repealed:

a) Norm on the Prevention of Money Laundering of April 2002;

b) First reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing;

c) Second reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing;

d) Third reform to the Norm on the Management of Prevention of the Risks of Money Laundering, Goods or Assets; and Terrorism Financing.

Art. 83.- Validity. This Norm enters into force on the day of its publication in the Official Gazette La Gaceta.

ANNEXES

ANNEX 1: GENERAL CONCEPTS FOR THE APPLICATION OF THE PLD/FT NORM

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Managua, Nicaragua 1. This PLD/FT Norm was approved by the Board of Directors of the SIBOIF through Resolution: CD-SIBOIF-524-1-MAR5-2008 dated March 5, 2008, and published in the Official Gazette La Gaceta, editions numbers: 63, 64, 65, 66 and 67 corresponding to the days 4, 7, 8, 9 and 10 of April 2008. The PLD/FT Norm repealed the PLD Norm of April 2002. This PLD/FT Norm has been in effect since April 10, 2008. This PLD/FT Norm was reformed for the first time