Circular 4/2018 — Modifies Circular 13/2017

(First Section) OFFICIAL GAZLETT Thursday, May 17, 2018 BANCO DE MEXICO CIRCULAR 04/2018 addressed to credit institutions and other companies that professionally provide the fund transfer service, regarding the General Provisions applicable to the fund transfer service and the payment systems administered by Banco de México.

A logo appears at the margin, stating: Banco de México.

CIRCULAR 04/2018
TO CREDIT INSTITUTIONS AND
OTHER COMPANIES THAT PROVIDE
PROFESSIONALLY THE SERVICE
OF FUND TRANSFERS:

SUBJECT: GENERAL PROVISIONS APPLICABLE TO
THE FUND TRANSFER SERVICE
AND THE PAYMENT SYSTEMS ADMINISTERED
BY BANCO DE MÉXICO.

Banco de México, with the purpose of continuing to promote the sound development of the financial system and the proper functioning of payment systems, as well as the protection of public interests, has deemed it convenient that, as part of the regulation of the fund transfer service through credit institutions and other companies that provide it professionally, these entities be subject to an adequate period during which they can carry out the verification of transfers they receive from other issuing entities, as well as those corresponding to resource transfers between deposit accounts they are authorized to maintain, which may entail higher operational risk due to improper processing resulting from the systems used by these entities. For these purposes, until such time as Banco de México makes a different determination, a fixed term of one day is established for entities receiving fund transfers of amounts equal to or greater than 50,000 pesos to deliver to their beneficiaries the resources corresponding to such transfers, solely regarding cash or cashier's check disbursements, without thereby affecting the crediting of such resources in the respective accounts or their availability in any other manner.

For the above reason, Banco de México, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States; Articles 2, 3, fraction I, 24, 31, and 35 Bis, of the Banco de México Law; Articles 10 and 19, of the Payment Systems Law; Article 22, of the Law for Transparency and Ordering of Financial Services; Articles 4, first paragraph, 8, paragraphs fourth and seventh, 10, first paragraph, 17, fraction I, 20, fraction XI, and 25 Bis 1, fraction IV, of the Internal Regulations of Banco de México, which grant it the authority to issue provisions through the Central Banking Provisions Directorate, the Payment Systems Directorate, and the Regulation and Supervision Directorate, respectively; as well as Article Second, fractions I, VIII, and X, of the Agreement on the Assignment of Administrative Units of Banco de México, has resolved to modify the title of the provisions and Rule 1a., as well as add a fraction II. Bis to Rule 2a. and a Chapter I Bis, to the "General Provisions applicable to participants in the payment systems administered by Banco de México and to other interested parties acting in such capacity," contained in Circular 13/2017, to remain as follows:

"GENERAL PROVISIONS APPLICABLE TO CREDIT INSTITUTIONS AND OTHER COMPANIES THAT PROVIDE PROFESSIONALLY THE FUND TRANSFER SERVICE, AS WELL AS TO PARTICIPANTS IN THE PAYMENT SYSTEMS ADMINISTERED BY BANCO DE MÉXICO AND TO OTHER INTERESTED PARTIES ACTING IN THE CAPACITY OF PARTICIPANT IN SUCH SYSTEMS"

"1a. Objective.- These Provisions aim to promote the proper functioning of payment systems, protect public interests, establish conditions that credit institutions and other companies providing the fund transfer service professionally must comply with, regulate the procedure that interested parties acting as Participants must follow, and establish the obligations to which Participants must be subject."

2a. Definitions.- …
I. and II. …

"II. Bis Receiving Entities: credit institutions and other companies that professionally provide the fund transfer service consisting of those (i) that receive from other issuing entities through multi-participant systems that settle them on the same day of their execution, and (ii) that correspond to resource transfers between deposit accounts that such institutions and companies are authorized to maintain."

III. to XIII. …
…

"CHAPTER I Bis
Fund Transfer Service through Receiving Entities

2a. Bis Disposition of Resources.- Receiving Entities must allow their clients, as beneficiaries of the respective fund transfers or resource transfers executed for amounts equal to or greater than fifty thousand pesos, to dispose of such resources, through the delivery of cash or cashier's checks issued, where applicable, by such Receiving Entities, including the delivery of cash for the payment of checks drawn, where applicable, against the corresponding accounts of such clients, solely from the next banking day following that on which the transfer or resource transfer in question was executed. As an exception to the provisions of this paragraph, Receiving Entities may deliver, in cash or cashier's check, the amounts corresponding to the aforementioned fund transfers or resource transfers on the same day of their crediting, provided that such Receiving Entities explicitly authorize this to their clients individually, subject to compliance with the procedures they establish regarding this matter, which include the verification of the requirements they establish for these purposes, based on the characteristics of the clients in question and their observed operational capacity.

Without prejudice to the provisions of the preceding paragraph, the aforementioned Receiving Entities must allow beneficiary clients to dispose of the indicated resources, through debit cards, electronic transfers, or fund transfers, as applicable, from the moment such resources are credited to the respective accounts."

TRANSITORY
SINGLE. This Circular shall enter into force on the day of its publication in the Official Gazette of the Federation.

Mexico City, May 14, 2018.- The Director of Central Banking Provisions, Mario Ladislao Tamez López Negrete.- Signature.- The Director of Regulation and Supervision, Viviana Garza Salazar.- Signature.- The Director of Payment Systems, Manuel Miguel Angel Díaz Díaz.- Signature.

(First Section) OFFICIAL GAZETTE Thursday, May 17, 2018 For any inquiries regarding the content of this Circular, please contact the Authorizations, Consultations, and Legal Control Management, at telephone numbers (55) 5237-2308, (55) 5237-2317, or (55) 5237-2000, extension 3200