Circular No. 2021-01 — Moment of Immission for the Finality of Transfer Orders in San Marino Systems

VICE DIRECTOR OF THE CENTRAL BANK OF THE REPUBLIC OF SAN MARINO

HAVING REGARD TO Articles 3, paragraph 3, and 12, paragraph 1, of Delegated Decree No. 111 of 31 August 2018 "Provisions on the finality of transfer orders in a payment or securities settlement system implementing Directive 98/26/EC", which repealed Law No. 45/2007;

HAVING REGARD TO Articles 37 and 38 of Law No. 96 of 29 June 2005 "Statute of the Central Bank of the Republic of San Marino", which also attribute to it the functions of management, regulation and supervision of the San Marino payment system;

HAVING REGARD TO the resolution of the Board of Directors by which the text of the Circular denominated "Moment of Immission for the Finality of Transfer Orders in San Marino Systems" was approved,

ISSUES the attached Circular No. 2021-01 which enters into force on 1 April 2021.

San Marino, 26 March 2021 Signed: THE VICE DIRECTOR Dr. Daniele Bernardi

Page 1 of 2 Circular No. 2021-01 MOMENT OF IMMISSION FOR THE FINALITY OF TRANSFER ORDERS IN SAN MARINO SYSTEMS

A. Definitions

1. For the purposes of this Circular, the following terms are understood as:

• "Central Bank": the Central Bank of the Republic of San Marino;
• "domiciliary bank": the San Marino bank at which the debtor sets up the pre-authorization to debit the account;
• "San Marino bank": the bank with its registered office in the Republic of San Marino or the possible branch, with its seat in the Republic of San Marino, of a foreign bank;
• "sending San Marino bank": the San Marino bank that enters the transfer into the RIS;
• "centralized accounts": the accounts through which San Marino banks can manage, also electronically, their deposits at the Central Bank;
• "interbank accounts": the accounts held between San Marino banks;
• "finality decree": Delegated Decree No. 111 of 31 August 2018 "Provisions on the finality of transfer orders in a payment or securities settlement system implementing Directive 98/26/EC" and subsequent amendments, repealing Law No. 45 of 23 March 2007 and its related Circular of 4 April 2007;
• "physical flow": the file containing the instructions to be transmitted, in electronic format, on the RIS;
• "documented collections": collections from the Extended Public Administration with paper receipt methods;
• "Extended Public Administration": the Honorable Chamber and the Entities of the Extended Public Sector as referred to in Law No. 105 of 31 July 2009 and subsequent amendments;
• "RIS": the San Marino Interbank Network, as the telematic infrastructure for transmitting information between operators of the San Marino payment system;
• "exchange of domestic contacts": the exchange of negotiable instruments, documents and correspondence;
• "Domestic SCT": the instructions for Sepa Credit Transfer issued by an ordering party at a San Marino bank and in favor of a beneficiary at another San Marino bank, excluding foreign exchange operations defined in Law No. 41 of 25 April 1996 and subsequent amendments;
• "SDD PA": the pre-authorized debits (Sepa Direct Debit) of the Extended Public Administration, as an order, given by a client to their bank, to pay a debt to a third party that is part of the Extended Public Administration;
• "SRD service": the domestic contact exchange service managed by the Central Bank, as a service of exchange of correspondence and documents between San Marino banks.

2. The use of terms subject to definition is highlighted below in small capitals.

B. Premise

1. THE FINALITY DECREE:

• Article 3, paragraph 3, states: "The moment of immission of the transfer order is established by the rules of the system in which the transfer order itself is entered. The Central Bank of the Republic of San Marino establishes the moment when a transfer order is entered into the San Marino systems.";

Page 2 of 2

• Article 12, paragraph 1, states: "The Central Bank of the Republic of San Marino may adopt measures of a technical nature aimed at facilitating the application of this delegated decree.".

2. This Circular therefore establishes the moment when a transfer order is entered into the San Marino payment systems (hereinafter also "moment of immission"), becoming thus "final" within the meaning and for the effects of THE FINALITY DECREE, and is issued pursuant to the combined provisions of Law No. 96 of 29 June 2005 (Articles 37 and 38) and THE FINALITY DECREE (Article 3, paragraph 3 and Article 12, paragraph 1).

C. Provisions

1. THE CENTRAL BANK, for each of the systems of the Republic of San Marino, as listed in Annex "A" of THE FINALITY DECREE, establishes the moment when a transfer order is entered into the aforementioned systems.

2. Below are listed the mentioned systems, as listed in the cited annex, and their respective moments of immission: a) System of single transfers settled on INTERBANK ACCOUNTS and transmitted via RIS: the moment of immission is the day, hour and minute when the SENDING SAN MARINO BANK sends the PHYSICAL FLOW of DOMESTIC SCTs to the RIS; b) System of EXCHANGE OF DOMESTIC CONTACTS settled on INTERBANK ACCOUNTS: the moment of immission is the day, hour and minute of closing of the session of the SRD SERVICE; c) System of collections and payments of the EXTENDED PUBLIC ADMINISTRATION settled on CENTRALIZED ACCOUNTS at the CENTRAL BANK, of which:

3. Collections and payments of the EXTENDED PUBLIC ADMINISTRATION via DOMESTIC SCTs: the moment of immission is that indicated in point a);

4. Collections of the EXTENDED PUBLIC ADMINISTRATION via DOCUMENTED COLLECTIONS: the moment of immission is that indicated in point b); d) System of daily clearing of contacts settled on CENTRALIZED ACCOUNTS at the CENTRAL BANK and transmitted via RIS: the system is not yet available therefore the moment of immission is currently undefined; e) System of SDD PA settled on CENTRALIZED ACCOUNTS at the CENTRAL BANK and transmitted via RIS: the moment of immission is the day, hour and minute when the CENTRAL BANK debits the CENTRALIZED ACCOUNT of the DOMICILIARY BANK on the due date of the obligation.

D. Final Provisions

1. This Circular enters into force on 1 April 2021.
2. Circular No. 2008-03 is repealed.