Norm for the Processing of Administrative Appeals

Monetary and Financial Board RESOLUTION CDMF-XVI-2-25 Of May 14, 2025

THE MONETARY AND FINANCIAL BOARD

CONSIDERING

I

That according to the Political Constitution of the Republic of Nicaragua, every person has the right to be equal before the law, determining absolute equality between men and women in the fulfillment of their duties and the exercise of their rights, having the right under equal conditions to due process and effective judicial protection.

II

That Article 1 of Law No. 1232, "Law on the Administration of the Monetary and Financial System," published in La Gaceta, Official Gazette No. 241 of December 30, 2024, establishes the regulatory regime for the administration of Nicaragua's monetary and financial system, applicable to the members of the administration of the monetary and financial system, to the persons and institutions regulated and supervised by them, as well as to the persons indicated by the aforementioned Law and related laws.

III

That according to Article 3 of Law No. 1232, "the administration of the monetary and financial system is composed of: 1. The Monetary and Financial Board, hereinafter referred to as "Board," 2. The Central Bank of Nicaragua, hereinafter referred to as "Central Bank," and 3. The Superintendence of Banks and Other Financial Institutions, hereinafter referred to as "Superintendence.""

IV

That Article 7 of Law No. 1232 establishes that "The Board is the highest governing body of the administration of the monetary and financial system."

V

That Article 17, subsection A, numeral 11, of Law No. 1232, establishes among the powers of the Monetary and Financial Board to approve the provisions, requirements, and procedures for the filing, processing, and resolution of administrative appeals for review and appeal that are filed against the decisions, acts, or resolutions issued by the Central Bank and by the Superintendence.

VI

That Article 150 of Law No. 1232 establishes that "All decisions, acts, or resolutions emanating from the Central Bank or the Superintendence shall be subject to administrative appeals. Against the decisions, acts, or resolutions issued by the Board, within the framework of its competencies, only the review appeal indicated in this Chapter shall be applicable, which exhausts the administrative route."

In exercise of its powers,

RESOLVES TO APPROVE

The following,

NORM FOR THE PROCESSING OF ADMINISTRATIVE APPEALS

CHAPTER I OBJECT AND DEFINITIONS

Article 1. Object and scope. This norm aims to establish the provisions, requirements, and procedures for the filing, processing, and resolution of administrative appeals against the decisions, acts, or resolutions of the Board, the Central Bank of Nicaragua, and the Superintendence of Banks and Other Financial Institutions. Such appeals shall be processed, attended to, and resolved with observance of the provisions established in this norm, being binding on all its instances, as applicable.

Article 2. Definitions. For the purposes of this norm, the following shall be understood: a. Exhaustion of the Administrative Route: Use of all available administrative resources within the instances of the administration of the monetary and financial system, as applicable. b. Central Bank or BCN: Central Bank of Nicaragua. c. Board: Highest governing body of the administration of the monetary and financial system. d. Day or days: Refers to calendar day, except Saturday and Sunday which are counted as a single day according to art. 134 of the Civil Procedural Code of the Republic of Nicaragua. e. Business days for filing appeals: Monday to Friday, except as provided in article 15 of this norm. f. Business hour: From 8:30 a.m. to 4:30 p.m. on business days.

g. Legitimate interest: Motivation of natural or legal persons in the matter or fact resolved through a decision, act, or resolution emanating from the Board, the Superior Administration of the BCN, the Superior Administration of the Superintendence, or any of its instances, as applicable, due to causing, in their judgment, direct prejudice or damage, or by feeling that their interests or rights have been violated or infringed upon, being authorized to file the appeals provided for in Law No. 1232, according to what is regulated in this norm. h. Appellant: Natural or legal persons who have a legitimate interest in the matter or fact resolved and are legally authorized to do so, file an administrative appeal for review or appeal against any decision, act, or resolution with the aim of modifying, revoking, or invalidating it, considering that it affects their rights or interests. i. Administrative appeal: Act by which a natural or legal person with a legitimate interest to appeal, files an appeal for review or appeal before the instances of the administration of the monetary and financial system, including its dependencies, as applicable. j. Review appeal: Is the administrative appeal filed before the instance that issued the decision, act, or resolution, as applicable, which is processed, heard, and resolved by the same instance that issued it. k. Appeal: Is the administrative appeal filed before the administrative body or instance that issued the decision, act, or resolution of a review appeal and is resolved by the hierarchical superior of this. l. Superintendence or SIBOIF: Superintendence of Banks and Other Financial Institutions.

CHAPTER II ON ADMINISTRATIVE APPEALS AGAINST DECISIONS, ACTS, OR RESOLUTIONS

Article 3. On Administrative Appeals. Against the acts, decisions, or resolutions emanating from any of the instances that make up the administration of the monetary and financial system, or their instances, as applicable, the following administrative appeals may be filed:

1. Review Appeal.
2. Appeal.

Article 4. On the legitimacy of the appellant. Natural or legal persons with a legitimate interest to appeal against a decision, act, or resolution of the Board, the Superior Administration of the BCN, the Superior Administration of the Superintendence, or any of its instances, as applicable, may file administrative appeals. In the case of natural persons, the appeal may be filed directly by the affected person or through their representative, duly authorized for this purpose through a notarial power of attorney. In the case of legal persons, the appeal must be filed by the legal representative or by a legal attorney authorized for this purpose, through a notarial power of attorney. In any of the cases, the one who files the appeal must prove their authority with the corresponding legal documents, as well as comply with the other requirements established in this norm.

Article 5. Presentation and receipt of appeals. The appeals filed against the acts, decisions, or resolutions, under the protection of this norm, must be presented in physical form, on plain paper, in original and two copies, duly signed and initialled on each of its pages, by the person with a legitimate interest to appeal or by their representative or legal attorney, as applicable. The appeals must be presented and received in the Correspondence Reception Office of the SIBOIF or in the Legal Advisory Department of the BCN, as applicable, on business days and hours, and within the deadlines established in this norm.

Article 6. Content of the appeals. 6.1 The appeal writing must contain at least the following: a. Authority before which the appeal is filed. b. For natural persons: First and last names of the appellant or of their representative, general legal information, valid citizen identification card number, residence card or passport for non-resident persons, as applicable. In the case that the natural person is represented by a legal attorney, they must list the legal documents that confer the authority to represent the natural person. For legal persons: Name or trade name of the appellant entity, first and last names of the representative or legal attorney, general legal information of this and valid citizen identification card number and list of legal documents that confer the authority to file the appeal on behalf of and in representation of the legal person. c. Mention of the decision, act, or resolution against which the appeal is filed, expressing the data thereof such as: name, authority or instance that issued it, number, date thereof, as well as the date and day of notification. d. Indication of the type of appeal filed. e. Expression of the grievance caused by the appealed decision, act, or resolution, making an explanation of the legal provisions that, in the judgment of the appellant, were transgressed. f. Clear expression of the claim of the appeal and formal request. g. Relevant evidence, if any. h. Place to receive notifications in Managua and indication of an email address. In case the appellant indicates an email address, notifications will be effected preferably by this means. If no place or email address is indicated to attend notifications, they will be notified through the corresponding notice board, leaving a record thereof in the respective file, in this case. i. Date of the writing. j. Signature of the appellant or of their legal attorney. 6.2 The appeal writing must be accompanied by an equal number of copies of the following documents: a. Copy of valid citizen identification card, residence card or passport for non-resident persons, as applicable, of the person signing the writing; b. Notarially certified copy of the notarial power of attorney of representation; c. Notarially certified copy of the valid Certificate of Final Beneficiary, which applies to commercial entities. d. Copy of the evidence that, in their judgment, are relevant, in their case.

Article 7. Correction. The instance hearing the appeal may only guide the correction of the requirements contained in subsections a), b), d), i) and j) of numeral 6.1 or of the requirements of numeral 6.2, both of article 6 of this norm. The deadline to correct will be five (5) days counted from the day following the notification. The aforementioned deadline will not be part of the time to resolve the respective appeal. In case the appellant does not comply with the correction within the established time, the official who ordered the correction will order the appeal proceedings to be archived, without further procedure.

Article 8. Inadmissibility of the appeal. The appeals will be declared inadmissible, in the following cases:

1. When the appeal is filed outside the deadlines established in this norm.
2. If the appeal is not presented in physical form, at the BCN or at the Superintendence, as applicable, on business days and hours, as indicated in article 5 of this norm.
3. If the appeal does not meet the requirements of letters c), e) and f) of article 6, numeral 6.1.
4. If the correction writing, if applicable, does not meet the requirements established in article 6.
5. In the case of appeal, if the appellant has not previously exhausted the review appeal.
6. When the object of the administrative appeal has a direct or connected relationship with a matter that is being heard by the judicial bodies. Of the resolution, in any of the cases, the appellant must be notified by the means indicated for such effect.

Article 9. Requirements and notifications by electronic means. The requirements, notifications or any type of communication related to the processing and resolution of administrative appeals effected by the BCN, SIBOIF or the Board, will have full legal effects if they are carried out through the email address recorded in the appellant's writing, as provided in article 6 (6.1) letter h).

CHAPTER III ON THE FILING, PROCESSING AND RESOLUTION OF ADMINISTRATIVE APPEALS

Article 10. On the filing of the review appeal. The review appeal must be filed within a deadline of fifteen (15) days, counted from the day following the receipt of the notification of the appealed decision, act, or resolution, specifically before the administrative instance that issued the act, resolution or decision. If the appeal is not presented within this deadline, said decision, act, or resolution will become final in the administrative route.

Article 11. Processing and resolution of the review appeal. Once the review appeal is filed, it will be notified to the parties (as applicable) so that within a deadline of three (03) days they answer in writing what they deem fit. With or without their answer, a reasoned and justified resolution will be issued within a deadline of twenty (20) days, counted from its adequate filing. To resolve the review appeal, additional information or documentation may be requested from the parties, when the appealed instance considers it necessary. The resolution of the review appeal will be notified to the appellant and to the respondent (when applicable to the latter) by the resolving authority or by the legal area, as applicable.

Article 12. On the filing of the appeal. The appeal must be filed within a deadline of seven (07) days, counted from the day following the receipt of the notification of the resolution of the review appeal. If the appeal is not presented within this deadline, said resolution will become final in the administrative route.

Article 13. Processing and resolution of the appeal. The appeal will be processed in the devolutive effect. Once the appeal is filed, it will be notified to the parties (as applicable) so that within a deadline of three (03) days they answer in writing what they deem fit. With or without their answer, a reasoned and justified resolution will be issued by the hierarchical superior of the appealed instance, within a deadline of twenty (20) days counted from its adequate filing. To resolve the appeal, additional information or documentation may be requested from the parties, when the appealed instance considers it necessary. The resolution of the appeal will be notified to the appellant and to the respondent (when applicable to the latter), by the Secretary of the Board or by the legal area, as applicable. The appeal resolution will exhaust the administrative route.

Article 14. On review appeals before the Board – Exceptionality of instance. Against the decisions, acts, or resolutions issued by the Board within the framework of its competencies, only the review appeal shall be applicable, provided that it does not derive from appeal resolutions resolved by this same body, as a result of administrative proceedings processed and resolved previously, by the Superior Administration of the BCN or the Superior Administration of the SIBOIF, as applicable, to which the provisions of articles 10, 11, 12 and 13 of this norm were applicable. The review appeals, indicated in this article, must be presented in the Legal Division of the BCN. The resolution issued by the Board for said appeal, will exhaust the administrative route and will be notified to the appellant by the Secretary of the Board.

CHAPTER IV FINAL PROVISIONS

Article 15. Suspension of deadlines. The deadlines indicated in this norm are suspended during national holidays, days of leave and vacation declared by the Presidency of the Republic, through the Ministry of Labor (MITRAB), for the entities and bodies of the State of Nicaragua.

Article 16. Repeal. The Norm for the Processing of Administrative Appeals, contained in Resolution No. CD-SIBOIF-1325-l-JUL26-2022 of date July 26, 2022, published in La Gaceta, Official Gazette No. 180, of September 27, 2022, is repealed.

Article 17. Validity. This norm will enter into force from June 1, 2025, without prejudice to its subsequent publication in the media determined by the President of the Board.

(f) Illegible, Luis Ángel Montenegro Espinoza, Substitute President of the Board; (f) Illegible, Magaly María Sáenz Ulloa, Substitute Member for the BCN. (f) Illegible, Bruno Gallardo, Minister of Finance, Owner Member; (f) Illegible, Roberto Rivas, Non-executive Owner Member; (f) Illegible, Hugo Ortega, Non-executive Owner Member. (Up to here the text of the Resolution). (f) Illegible, Ruth Elizabeth Rojas Mercado, Secretary of the Board.