Derogation of the Norm Regulating Electronic Money Operations by Financial Institutions and the Norm for Authorization and Operation of Entities Operating with Electronic Money

Resolution No. CD-SIBOIF-1207-1-OCT06-2020 Dated October 6, 2020 DEROGATION OF THE NORM THAT REGULATES ELECTRONIC MONEY OPERATIONS CARRIED OUT BY FINANCIAL INSTITUTIONS AND THE NORM FOR THE AUTHORIZATION AND OPERATION OF ENTITIES THAT OPERATE WITH ELECTRONIC MONEY

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

CONSIDERING

I That on April 26, 2012, Resolution CD-SIBOIF-725-1-ABR26-2012 was issued, containing the Norm that Regulates Electronic Money Operations carried out by Financial Institutions, which aims to establish the minimum requirements and obligations that financial institutions providing services or facilitating operations with electronic money must comply with.

II That on April 26, 2012, Resolution CD-SIBOIF-725-2-ABR26-2012 was issued, containing the Norm for the Authorization and Operation of Entities that Operate with Electronic Money, which aims to regulate the following aspects related to Electronic Money Entities (EDE): a) Authorization and operation requirements; b) Authorized services; c) Mobile Transactions Circuit; d) User protection; e) Supervision of EDEs; and f) Disciplinary Regime.

III That Article 5, numeral 3, of Law No. 732, Organic Law of the Central Bank of Nicaragua, contained in Law No. 974, Law of the Nicaraguan Legal Digest of the Banking and Finance Subject Matter, published in La Gaceta, Official Gazette No. 164, on August 27, 2018, and in its update (Legal Digest), stipulates that it is the function of the BCN to regulate and supervise the country's payment system, and Article 19, numeral 3, of the same law, states that it is the authority of the Board of Directors of the BCN to approve the norms for the operation and oversight of the Country's Payment System.

IV That on September 16, 2020, the Board of Directors of the BCN approved the Regulation of Fintech Providers of Payment Services, contained in Resolution No. CD-BCN-XLIV-1-20, which aims to regulate the authorization process of fintech providers of payment services and establish other provisions applicable to authorized providers, establishing in its Article 12 that the electronic money payment service will require the processing and obtaining of an operating license and/or registration by the BCN.

V That according to the considerations set forth above and based on the powers conferred by Articles 3, numeral 13), and 10, numeral 1) of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, contained in the Legal Digest.

In exercise of its powers,

HAS ISSUED

The following,

CD-SIBOIF-1207-1-OCT06-2020 DEROGATION OF THE NORM THAT REGULATES ELECTRONIC MONEY OPERATIONS CARRIED OUT BY FINANCIAL INSTITUTIONS AND THE NORM FOR THE AUTHORIZATION AND OPERATION OF ENTITIES THAT OPERATE WITH ELECTRONIC MONEY

FIRST: Resolution CD-SIB-725-1-ABR26-2012, containing the Norm that Regulates Electronic Money Operations carried out by Financial Institutions, published in La Gaceta, Official Gazette, Number 160 of August 23, 2012, is hereby repealed.

SECOND: Resolution CD-SIB-725-2-ABR26-2012, containing the Norm for the Authorization and Operation of Entities that Operate with Electronic Money, published in La Gaceta, Official Gazette, Number 161 of August 24, 2012, and its reforms, are hereby repealed.

THIRD: This resolution will enter into force 180 days after its publication in La Gaceta, Official Gazette.

(S) S. Rosales (S) Illegible (Luis Ángel Montenegro E.) (S) Fausto Reyes B. (S) Illegible (Silvio Moisés Casco Marenco) (S) Illegible (Ervin Vargas Pérez (S) Legible (Rafael Avellan Rivas) Secretary.

RAFAEL ÁNGEL AVELLAN RIVAS Secretary of the Board of Directors SIBOIF