JPRM-2024-005-A — Organic Statute of Process-Based Organizational Management of the Central Bank of Ecuador

Page 1 of 116 RESOLUTION NO. JPRM-2024-005-A THE MONETARY AND REGULATORY POLICY BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting by virtue of state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 thereof states that the Public Administration constitutes a service to the community governed by the principles of effectiveness, quality, hierarchy, coordination, planning, among others;

That, Article 302 of the Magna Carta provides: "Monetary, credit, exchange, and financial policies shall have the following objectives:

1. Supply the necessary means of payment so that the economic system operates efficiently.
2. Establish levels of global liquidity that guarantee adequate margins of financial security.
3. Direct liquidity surpluses toward the investment required for the country's development.

That, Article 303 thereof determines: "(...) The formulation of monetary, credit, exchange, and financial policies is the exclusive faculty of the Executive Function and shall be implemented through the Central Bank. The law shall regulate the circulation of currency with liberatory power in Ecuadorian territory. The execution of credit and financial policy shall also be exercised through public banking. The Central Bank is a legal entity of public law, whose organization and functioning shall be established by law";

That, Article 26 of the Organic Monetary and Financial Code establishes: "The Central Bank of Ecuador is a legal entity of public law, part of the Executive Function, of indefinite duration, with institutional, administrative, budgetary, and technical autonomy.

Page 2 of 116 The Central Bank of Ecuador, in the exercise of its functions and attributions, shall be governed by the Constitution of the Republic, this Code, its statute, the regulations issued by the governing body, the internal regulations, and the other laws applicable by reason of the subject matter. (...)";

That, Article 27.1 thereof states: "In achieving its objectives and performing its functions, the Central Bank of Ecuador shall be an autonomous and responsible entity as provided in this Code and the Constitution of the Republic, without prejudice to its duty to coordinate necessary actions with other State organisms for the fulfillment of its purposes. At all times, the institutional autonomy of the Central Bank of Ecuador shall be respected, and its decisions shall respond to exclusively technical motivations that lead to the fulfillment of its functions and attributions.";

That, Article 47 of the referred Code provides: "The administrative structure of the Central Bank of Ecuador shall be established in the statute approved by the Monetary and Regulatory Policy Board. The statute shall be processed in accordance with what is established in the regulations of the competent governing body.";

That, Article 47.6 of the same Code, regarding the functions of the Monetary and Regulatory Policy Board, among others, establishes: "18. Approve the Statute of the Central Bank of Ecuador, and define the regulatory framework for contracting, promotions, and the exercise of disciplinary control of the servants of the Central Bank of Ecuador (...)";

That, Article 1 of Executive Decree No. 457, of June 18, 2022, published in the Official Register Supplement No. 87, of June 20, 2022, reformed by Executive Decree No. 543, of August 5, 2022, published in the Second Supplement of the Official Register No. 140, of September 2, 2022, which contains the "Guidelines for the Optimization of Public Spending," determines: "The provisions of this Executive Decree are mandatory for the public sector, including public companies, with the exception of entities that make up the decentralized autonomous regime and legal entities created by normative act of the decentralized autonomous governments for the provision of public services. Nor shall they be applicable to the Central Bank of Ecuador, and its highest governing body, which shall be governed by the autonomy provided for in the Organic Monetary and Financial Code (...)";

Page 3 of 116 That, through Administrative Resolution No. 433-2017-G, of December 29, 2017, published in the Special Edition of the Official Register No. 319, of March 1, 2018, the former Monetary and Financial Policy Board resolved to issue the "Reform to the Organic Statute of Process-Based Organizational Management of the Central Bank of Ecuador";

That, the General Provisions First and Fourth of the aforementioned Resolution prescribe the following: "FIRST.- Authorize the General Management of the Central Bank of Ecuador to sign the administrative acts necessary for the operability, execution, and implementation of the Organic Statute of Process-Based Organizational Management of the Central Bank of Ecuador" and, "FOURTH.- Authorize the General Management of the Central Bank of Ecuador to issue the respective Administrative Resolution for the reform of the portfolio of products and services (Deliverables) determined in the Organic Statute of Process-Based Organizational Management of the Central Bank of Ecuador, increasing or decreasing it. According to institutional requirements and in accordance with current regulations";

That, through Administrative Resolution No. BCE-GG-001-2023, of January 4, 2023, published in the Official Register No. 245, of February 7, 2023, the General Manager of the Central Bank of Ecuador resolved: "Declare the Central Bank of Ecuador in a process of comprehensive institutional reform, in conformity with the new attributions and competencies incorporated in the Organic Monetary and Financial Code for the Defense of Dollarization";

That, with Letter No. SNP-SGP-SPN-2023-0629-OF, of June 21, 2023, the National Secretariat for Planning issued a favorable report on the "Analysis of Institutional Presence in the Territory of the Central Bank of Ecuador," in order to continue with the institutional reform process;

That, with Letter No. MEF-SRF-2023-0583-O, of November 22, 2023, the Ministry of Economy and Finance informed the Ministry of Labor that: "(...) it proceeds to issue the Favorable Pronouncement of No Impact on the General State Budget, regarding the request made by the Ministry of Labor in Letter No. MDT-VSP-2023-0454-O of November 17, 2023, in order for the Ministry of Labor, within the scope of its competencies, to continue with the approval process of the Redesign of the Organizational Structure, which contemplates the change of denomination of forty-one (41) positions, creation of nine (09) positions, and suppression of three (03) positions, all of the Upper Hierarchical Level for the Central Bank of Ecuador, since said process in question would not affect the General State Budget, as it would be financed with the application to the institutional budget of the CBE based on its administrative and financial autonomy. (...)";

That, with Letter No. MDT-VSP-2023-0545, of November 28, 2023, the Ministry of Labor approved the redesign of the Organizational Structure, Resolution and List of Assignments for the change of denomination of (41) positions, creation of (9) position, and suppression of (3) positions of the Upper Hierarchical Level for the Central Bank of Ecuador, with a dictamen of no impact on the General State Budget;

That, with Letter No. MDT-VSP-2024-0006-O, of January 15, 2024, the Ministry of Labor approved the Competency Matrix, Institutional Management Model, and Draft Organic Statute of the Central Bank of Ecuador;

That, the Monetary and Regulatory Policy Board, in ordinary session in person, on March 8, 2024, reviewed the proposal sent via memorandum No. BCE-BCE-2024-0051-M, of March 1, 2024, by the General Manager of the Central Bank of Ecuador to the President of the Monetary and Regulatory Policy Board; as well as, the Technical Report BCE-DATH-029-2024 of January 11, 2024; the Legal Report No. BCE-CGJ-006-2024, of January 22, 2024; and, all enabling documentation; and,

In exercise of its functions and in attention to Article 47.7 of the Organic Monetary and Financial Code, the Monetary and Regulatory Policy Board resolves: RESOLVES:

Issue the ORGANIC STATUTE OF PROCESS-BASED ORGANIZATIONAL MANAGEMENT OF THE CENTRAL BANK OF ECUADOR

CHAPTER I OF STRATEGIC DIRECTION

Article 1. - The Central Bank of Ecuador aligns with its mission and defines its institutional structure based on its legal basis and institutional strategic direction determined in its competency matrix, institutional planning, and management model.

Page 5 of 116 Article 2. - Mission and Vision: Mission: The Central Bank of Ecuador will implement the monetary policy, formulated by the Monetary and Regulatory Policy Board, aimed at fostering and maintaining a stable monetary system, contributing to financial stability, in order to preserve the integrity of dollarization, including the generation of statistics and studies, as well as the safe and efficient functioning of payment systems and means. Vision: To be an institution recognized for its transparency and solidity, based on its autonomy and technical capacity, a reference in the digital transformation of Central Banking in service of the country.

Article 3.- Values:

1. Respect: Which involves the consideration of the dignity of the person, the rights and freedoms inherent to them, correct treatment with citizens and coworkers.
2. Integrity: Manifested in the personal qualities of honesty, probity, sincerity, avoiding any behavior that could reflect negatively on the person or the institution.
3. Transparency: In professional exercise, with clear and evident conduct that is understood without doubt or ambiguity, of which an account can be given at all times, complying with the reserve and confidentiality required by information subject to banking or statistical secrecy and complying with the duty to account to the citizenry.
4. Service Attitude: Demonstrated by the servants and workers of the Central Bank of Ecuador and which puts in evidence the commitment to the needs of the population, orienting attention and the satisfaction of internal and external clients or users as a priority. It also involves the efficient exercise of the position, permanent training to face progress and the evolution of sciences and techniques, as well as changes in legislation.
5. Equality and non-discrimination: Implies guaranteeing the effective enjoyment of the rights established in the Constitution of the Republic of Ecuador in international instruments. Within the exercise of their functions, servants and workers will demonstrate an inclusive, solidary, positive, respectful, and tolerant attitude towards both internal and external users, without any distinction.

Page 6 of 116 6. Promotion of the rights of vulnerable groups: Contemplates adopting affirmative measures in favor of priority attention groups, granting them first-order attention and all facilities for access to institutional services. 7. Gender equity: Refers to justice, impartiality, and equity regarding rights, responsibilities, and opportunities between persons of different genders. 8. Respect for Gender Identity: Implies guaranteeing and respecting, at all times, the gender identity of servants and workers, in the fulfillment of functions. 9. Non-Violence: Refers to the rejection of any act of intimidation that has or may have as a result physical, sexual, or psychological damage or suffering; understood as any harmful act incurred against the will of a person, which may result in contempt, ridicule, or use of offensive vocabulary, including threats or actions to intentionally ignore and neglect the other person. 10. No Workplace Harassment: Any behavior attesting to the dignity of the person and potentially harmful, committed in the workplace or at any time against one of the parties to the labor relationship or between workers, which has as a result for the affected person their detriment, mistreatment, humiliation, or which threatens or harms their labor relationship. Harassment may be considered discriminatory when motivated by one of the reasons enumerated in numeral 2 of Article 11 of the Constitution of the Republic of Ecuador.

Article 4.- Institutional Objectives: The objectives defined for the Central Bank of Ecuador are: • OEI 1: Maintain monetary stability through the implementation of policies based on research, technical proposals, and economic information that contribute to the country's development. • OEI 2: Maintain the efficient operation of the Payment System and foster the use of electronic payment means, with quality standards, that contribute to financial stability. • OEI 3: Maintain the liquidity of the economy through investment operations, management of international reserves, and the negotiation of non-monetary gold, in its role as custodian of dollarization.

Page 7 of 116 • OEI 4: Maintain efficiency, security, transparency, and institutional integrity and permanent interaction with the citizenry through the different channels and services of the Central Bank, its museums, and libraries.

CHAPTER II OF THE SERVICE QUALITY MANAGEMENT AND INSTITUTIONAL DEVELOPMENT COMMITTEE

Article 5.- Service Quality Management and Institutional Development Committee. - In accordance with what is provided in Article 138 of the General Regulation of the Organic Law of the Public Sector (LOSEP), the Central Bank of Ecuador has the Service Quality Management and Institutional Development Committee, which shall have the responsibility to propose, monitor, and evaluate the application of policies, norms, and priorities relative to the improvement of institutional efficiency. In decentralized units or processes, local committees will be available, which shall be permanent and must coordinate their activities with the national committee.

CHAPTER III OF PROCESSES AND ORGANIZATIONAL STRUCTURE

Article 6.- Institutional Processes: To fulfill the mission of the Central Bank of Ecuador, determined in its strategic planning and institutional management model, the following processes will be managed in the organizational structure of the central and decentralized levels: ● Governing: Those processes that provide guidelines, policies, and strategic plans for the direction and control of the Central Bank of Ecuador. ● Substantive: Those processes that carry out essential activities to provide the services and products offered to its clients and/or users, which focus on fulfilling the mission of the Central Bank of Ecuador. ● Adjectival: Those processes that provide products or services to governing and substantive processes, classified into advisory and support adjectival processes.

Page 8 of 116 Article 7.- Graphical Representation of Institutional Processes: Value Chain

Article 8.- Organizational Structure: The Central Bank of Ecuador, for the fulfillment of its competencies, attributions, mission, vision, and management of its processes, has identified the following organizational structure:

1. CENTRAL MANAGEMENT LEVEL Governing Body: 1.1. Monetary and Regulatory Policy Board Responsible: President of the Monetary and Regulatory Policy Board 1.1.1. Administrative Secretariat Responsible: Administrative Secretary 1.2. Governing Process Directorial Level: - 1.2.1. Strategic Direction Responsible: General Manager Operational Level. - 1.3. Substantive Processes: 1.3.1. Payment Means Supervision and Innovation Management Responsible: Manager of Payment Means Supervision and Innovation

Page 9 of 116 1.3.1.1. Payment Means Supervision Management Responsible: Submanager of Payment Means Supervision 1.3.1.2. Payment Means Innovation Management Responsible: Submanager of Payment Means Innovation 1.3.2. Economic Studies and Statistics Management Responsible: Manager of Economic Studies and Statistics 1.3.2.1. Macroeconomic Studies and Programming Management Responsible: Submanager of Macroeconomic Studies and Programming 1.3.2.2. Statistical Information Management Responsible: Submanager of Statistical Information 1.3.2.3. National Accounts and Conjuncture Management Responsible: Submanager of National Accounts and Conjuncture 1.3.2.4. Monetary and Financial Stability Management Responsible: Submanager of Monetary and Financial Stability 1.3.3. Investments and International Services Management Responsible: Manager of Investments and International Services 1.3.3.1. International Financial Services Management Responsible: Submanager of International Financial Services 1.3.3.2. Fiduciary Administration Management Responsible: Submanager of Fiduciary Administration 1.3.3.3. Investment Management Responsible: Submanager of Investments 1.3.3.4. Gold Commercialization Management Responsible: Submanager of Gold Commercialization 1.3.4. Risk Management Responsible: Risk Manager 1.3.4.1. Information Security Management Responsible: Submanager of Information Security

Page 10 of 116 1.3.4.2. Compliance Management Responsible: Submanager of Compliance 1.3.4.3. Financial Risk Management Responsible: Submanager of Financial Risks 1.3.4.4. Operations Risk Management Responsible: Submanager of Operations Risks 1.3.5. Payment Means and National Services Management Responsible: Manager of Payment Means and National Services 1.3.5.1. Monetary Species Management Responsible: Submanager of Monetary Species 1.3.5.2. Securities Deposit Management Responsible: Submanager of Securities Deposit 1.3.5.3. Payment Systems Administration Management Responsible: Submanager of Payment Systems Administration 1.3.5.4. National Financial Services Management Responsible: Submanager of National Financial Services 1.3.6. Security Operations and Value Transport Management Responsible: Submanager of Security Operations and Value Transport 1.4. Adjectival Processes: Advisory Level. - 1.4.1. Banking Audit Management Responsible: Director of Banking Audit 1.4.2. International Relations Management Responsible: Submanager of International Relations 1.4.3. Governmental Internal Audit Management Responsible: Governmental Internal Auditor 1.4.4. Monetary Education and Citizen Attention Management Responsible: Submanager of Monetary Education and Citizen Attention

Page 11 of 116 1.4.5. Strategic Communication Management Responsible: Submanager of Strategic Communication 1.4.6. Legal Management Responsible: Legal Manager 1.4.6.1. Legal Advice Management Responsible: Submanager of Legal Advice 1.4.6.2. Coercive and Administrative Resources Management Responsible: Submanager of Coercive and Administrative Resources 1.4.6.3. Regulation Management Responsible: Submanager of Regulation 1.4.6.4. Institutional Sponsorship Management Responsible: Submanager of Institutional Sponsorship 1.2.2. General Submanagement. - Responsible: General Submanager 1.2.2.1. Adjectival Processes: Advisory Level. - 1.2.2.1.1. Information Technology Management Responsible: Information Technology Manager 1.2.2.1.1.1. ICT Infrastructure and Operations Management Responsible: Submanager of ICT Infrastructure and Operations 1.2.2.1.1.2. Technological Assurance Management Responsible: Submanager of Technological Assurance 1.2.2.1.1.3. Software Solutions Management Responsible: Submanager of Software Solutions 1.2.2.1.1.4. Management and IT Services Responsible: Submanager of Management and IT Services 1.2.2.1.2. Planning and Strategic Management

Page 12 of 116 Responsible: Manager of Planning and Strategic Management 1.2.2.1.2.1. Planning and Projects Management Responsible: Submanager of Planning and Projects 1.2.2.1.2.2. Processes and Quality Management Responsible: Submanager of Processes and Quality Support Level. - 1.2.2.1.3. Financial Administrative Management Responsible: Financial Administrative Manager 1.2.2.1.3.1. Administrative Management Responsible: Administrative Submanager 1.2.2.1.3.2. Financial Management Responsible: Financial Submanager 1.2.2.1.3.2.1. Accounting Management Responsible: General Accountant 1.2.2.1.3.3. Human Talent Administration Management Responsible: Human Talent Administration Submanager 1.2.2.1.4 General Secretariat Management Responsible: General Secretary

2. DECENTRALIZED MANAGEMENT LEVEL / TERRITORIAL MANAGEMENT. - 2.1. Governing Processes: Directorial Level. – 2.1.1. Strategic Direction Responsible: Zonal Submanager 2.2. Substantive Processes: Operational Level. - 2.2.1. Zonal Unit of Security Operations and Value Transport 2.2.2. Zonal Unit of Payment Systems Administration 2.2.3. Zonal Unit of Securities Deposit

Page 13 of 116 2.2.4. Zonal Unit of Monetary Species 2.2.5. Zonal Unit of National Financial Services 2.3. Adjectival Processes: Advisory Level. - 2.3.1. Zonal Unit of Information Technology 2.3.2. Zonal Legal Unit Support Level. - 2.3.3. Zonal Financial Administrative Unit 2.3.4. Zonal Unit of Monetary Education and Citizen Attention 2.3.5. Zonal Unit of General Secretariat 2.4. Technical Office

Article 9. - Graphical representation of the institutional structure a) Structure at Central Level:

Page 14 of 116

Page 15 of 116 b) Decentralized Level:

CHAPTER IV OF THE DESCRIPTIVE ORGANIZATIONAL STRUCTURE

Article 10.- Descriptive Structure:

1. CENTRAL MANAGEMENT LEVEL Governing Body: 1.1. Monetary and Regulatory Policy Board Mission: To formulate the country's monetary policy; as well as, the policies of the Central Bank of Ecuador, through the guidelines it issues in its capacity as the highest governing body of the Central Bank of Ecuador with the objective of preserving the integrity and sustainability of the dollarization monetary system and the financial system. Responsible: President of the Monetary and Regulatory Policy Board

Page 16 of 116 Attributions and Responsibilities: a) Formulate policy in the monetary sphere and observe its application by the Central Bank of Ecuador, to preserve the integrity and sustainability of the dollarization monetary system and the financial system, in accordance with the provisions of the Organic Monetary and Financial Code; b) Issue the Code of Ethics; c) Present annual reports to the President of the Republic; d) Present, to the President of the Republic, proposals for modification of legislation in monetary matters; e) Establish the policies of the Central Bank of Ecuador