Circular 11/2019 — Modifications to Circular 13/2017 (Implementation of CoDi Transfers)

48 OFFICIAL GAZETTE Tuesday, October 1, 2019
BANK OF MEXICO
CIRCULAR 11/2019 addressed to Credit Institutions and other companies that professionally provide the service of fund transfers regarding the Modifications to Circular 13/2017 (Implementation of CoDi Transfers).

A logo appears at the margin, stating: Bank of Mexico.- “2019, Year of the Southern Leader, Emiliano Zapata”.

CIRCULAR 11/2019
TO CREDIT INSTITUTIONS AND OTHER
COMPANIES THAT PROFESSIONALLY PROVIDE THE
SERVICE OF FUND TRANSFERS:
SUBJECT: MODIFICATIONS TO CIRCULAR
13/2017 (IMPLEMENTATION OF
CODI TRANSFERS)

The Bank of Mexico, with the purpose of continuing to promote the proper functioning of payment systems and to encourage the use of electronic payment methods, has considered it necessary to modify the regulation in order to recognize the use of payment messages that may be referred to electronic fund transfer systems. As part of this, it is necessary that these provisions establish mechanisms that allow the participation of third parties in the generation and processing of payment messages within the context of the electronic platform known as “Digital Collection” (CoDi). This is subject to verification by the Bank of Mexico regarding the functionality of such programs and their compatibility with the infrastructures it operates and with other platform participants. Furthermore, in line with the above, it is necessary to establish clear obligations to which participants in the Interbank Electronic Payment System (SPEI) operating under the new payment scheme must adhere in order to process transfers generated by a payment message, in accordance with applicable regulations, to meet the required standards, processing times, and conditions. These mechanisms and obligations will promote the use of new payment schemes in favor of an environment with greater competition in payment services, which will result in benefits for end users.

For the above reasons, the Bank of Mexico, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States; Articles 2, 3, fraction I, 24, and 35 Bis, of the Bank of Mexico 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, 12 Bis, first paragraph, in relation to Article 20 Quater, fraction IV, and 14 Bis, first paragraph, in relation to Article 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Payment Systems and Market Infrastructures and the General Legal Directorate, respectively; as well as Article Second, fractions X and XVII, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to modify fractions XVI and XVII of Article 15th, and to add fractions II Ter and IX Bis to Article 2nd, to include the definitions of “Payment Message” and “Software Program”; Chapter III Bis; Article 12th Bis; fraction XVIII to Article 15th; and Article 18th to the “General Provisions applicable to credit institutions and other companies that professionally provide the service of fund transfers, as well as to participants in payment systems administered by the Bank of Mexico and to other interested parties wishing to act as participants in said systems”, contained in Circular 13/2017, to read as follows:

GENERAL PROVISIONS APPLICABLE TO CREDIT INSTITUTIONS AND OTHER COMPANIES THAT PROFESSIONALLY PROVIDE THE SERVICE OF FUND TRANSFERS, AS WELL AS TO PARTICIPANTS IN PAYMENT SYSTEMS ADMINISTERED BY THE BANK OF MEXICO AND TO OTHER INTERESTED PARTIES WISHING TO ACT AS PARTICIPANTS IN SAID SYSTEMS

2nd. Definitions.- …

…

“II. Ter Payment Message:
a message processed by means of computer programs of the participant in the electronic fund transfer system between deposit accounts in sight, among others, which is generated by the beneficiary client of the respective transfer for delivery to the issuing client in question, with the purpose that, once the latter accepts what is indicated in said message through the procedure established for this purpose in accordance with the applicable Internal Rules, the respective Transfer Order is sent, with the characteristics determined

Tuesday, October 1, 2019 OFFICIAL GAZETTE 49 in accordance with the message itself.”

…

“IX. Bis Software Program:
a computer program that, on the one hand, is developed by (i) the Administrator of the SPEI, (ii) a participant in said payment system, or (iii) a third party recognized by the Bank of Mexico and that, on the other hand, performs the actions and complies with the requirements established in the applicable Internal Rules.”

…

“CHAPTER III Bis
Registration of Third-Party Developers of Software Programs

12th Bis Third-Party Developers of Software Programs.- Third parties who intend for the Software Programs they develop to generate Payment Messages without the intervention of a Participant, must register and obtain prior certification of said Software Program with the Administrator, in accordance with what is provided in the Internal Rules or, if applicable, in accordance with what is specified by the Administrator.

Likewise, Participants or interested parties wishing to act as such, who intend to agree with third parties to provide them with a Software Program for the generation of Payment Messages that these can offer to their clients or to assist in the processing of Transfer Orders through the SPEI originated by Payment Messages, in addition to what is provided in the previous Chapter III, must prove to the Administrator the corresponding registration that said third party has requested in accordance with what is provided in the Internal Rules.”

15th Obligations of SPEI Participants.-…
I. to XV…

“XVI. Refrain from making available to the clients referred to in the previous fraction VI, on the same banking business day that the Transfer Order accepted by SPEI directed to the mentioned client’s account is received, the resources corresponding to the credit that may have resulted appropriate to make, when the Administrator issues a notice regarding situations where SPEI Participants must elevate their monitoring and alert mechanisms with respect to fund transfers they process through the SPEI;
XVII. Refrain from issuing Transfer Orders in the name of the SPEI Participant in question and on behalf of third parties, for the credit of the corresponding resources in any of the accounts of the clients referred to in the previous fraction VI opened at the same SPEI Participant or at any other, and
XVIII. Generate, process, and receive, in accordance with the Internal Rules, Payment Messages by means of Software Programs developed in accordance with said Internal Rules.”

“18th Loss of Registration of Third-Party Developers of Software Programs.- The Bank of Mexico may revoke the registration granted to third-party developers of Software Programs referred to in the first paragraph of Article 12th Bis of these Provisions, after an evaluation it conducts regarding the severity of the non-compliance they have incurred, when they do not observe any of the obligations provided in the Administrator’s specifications for such third parties.

Likewise, the Bank of Mexico may revoke the registration granted to third-party developers of Software Programs referred to in the second paragraph of Article 12th Bis, in case it detects changes in its operation that could affect compliance with these Provisions or the Internal Rules, or when it identifies or has knowledge of non-compliance by the third party with applicable regulations.”

TRANSITORY PROVISIONS

FIRST.- This Circular shall enter into force on the second banking business day following the date of its publication in the Official Gazette of the Federation.

SECOND.- From the day following the publication in the Official Gazette of the Federation of this Circular, the subjects referred to in Article 12th Bis of these Provisions may request the registration of their respective Software Programs with the Administrator, in accordance with what is provided in said provision and subject to what is provided in Article 18th of these Provisions.

Mexico City, September 26, 2019.- The General Director of Payment Systems and Market Infrastructures, Manuel Miguel Ángel Díaz Díaz.- Rubric.- The General Legal Director, Luis Urrutia Corral.- Rubric.

50 OFFICIAL GAZETTE Tuesday, October 1, 2019
For any inquiries regarding the content of this Circular, please contact the Central Bank Authorizations and Consultations Department, at telephone numbers 55 5237-2308, 55 5237-2317, or 55 5237-2000 Ext. 3200.