Agreement by which the Board of Directors of the National Banking and Securities Commission delegates to the President, Legal Vice President, Director General of Crimes and Sanctions, and Administrative Sanctions Coordinators A, B, and C the authority to impose administrative sanctions

AGREEMENT BY WHICH THE BOARD OF DIRECTORS OF THE NATIONAL BANKING AND SECURITIES COMMISSION DELEGATES TO THE PRESIDENT, LEGAL VICE PRESIDENT, DIRECTOR GENERAL OF CRIMES AND SANCTIONS, AND ADMINISTRATIVE SANCTIONS COORDINATORS A, B, AND C OF THE SAID COMMISSION, THE AUTHORITY TO IMPOSE ADMINISTRATIVE SANCTIONS

Published in the Official Gazette of the Federation on April 13, 2022.

The Board of Directors of the National Banking and Securities Commission, in its session held on February 24, 2022, and exercising the authority conferred upon it by articles 12, fractions IV and X of the Law of the National Banking and Securities Commission, as well as article 10 of the Internal Regulations of the National Banking and Securities Commission, has resolved to issue the following:

AGREEMENT BY WHICH THE BOARD OF DIRECTORS OF THE NATIONAL BANKING AND SECURITIES COMMISSION DELEGATES TO THE PRESIDENT, LEGAL VICE PRESIDENT, DIRECTOR GENERAL OF CRIMES AND SANCTIONS, AND ADMINISTRATIVE SANCTIONS COORDINATORS A, B, AND C OF THE SAID COMMISSION, THE AUTHORITY TO IMPOSE ADMINISTRATIVE SANCTIONS

ARTICLE ONE.- The authority to impose administrative sanctions for infractions referenced in the following legal instruments is delegated to the President, Legal Vice President, Director General of Crimes and Sanctions, and Administrative Sanctions Coordinators A, B, and C of the National Banking and Securities Commission: Law to Regulate Financial Groupings, Law of Credit Institutions, General Law of Credit Auxiliary Organizations and Activities, Law of Investment Societies, Law of Investment Funds, Securities Market Law, Law of Popular Savings and Credit, Law to Regulate the Activities of Savings and Loan Cooperative Societies, Law to Regulate Credit Information Societies, Law of Credit Unions, Law for the Transparency and Ordering of Financial Services, Law to Regulate Technology Financial Institutions, Law of the National Institute for the Protection of Workers' Consumption Fund, Organic Law of the National Financial Institution for Agricultural, Rural, Forestry, and Fisheries Development, as well as the Federal Revenue Law in force at the time the corresponding sanction is imposed, and the provisions emanating from them, without prejudice to the direct exercise of this authority by the Board of Directors itself, according to the following:

a) In the President and the Legal Vice President, interchangeably, when the amount of the fine or the total of the fines imposed in a single act, on the entity or person infringing, as the case may be, due to one or various infractions, is up to one hundred fifty thousand days of the general minimum wage in effect in Mexico City, or up to the equivalent of that amount when the fines are determined according to other bases.

b) In the Director General of Crimes and Sanctions, when the amount of the fine or the total of the fines imposed in a single act, on the entity or person infringing, as the case may be, due to one or various infractions, is up to one hundred thousand days of the general minimum wage in effect in Mexico City, or up to the equivalent of that amount when the fines are determined according to other bases.

c) In the Administrative Sanctions Coordinators A, B, or C, when the amount of the fine or the total of the fines imposed in a single act, on the entity or person infringing, as the case may be, due to one or various infractions, is up to thirty-five thousand days of the general minimum wage in effect in Mexico City, or up to the equivalent of that amount when the fines are determined according to other bases.

ARTICLE TWO.- For the purposes of this Agreement, the following subjects who commit violations of the laws governing them shall be considered infringers:

I. The entities or financial entities that are part of the Mexican financial system referred to in article 3, fraction IV of the Law of the National Banking and Securities Commission;

II. The federations referred to in the Law of Popular Savings and Credit;

III. The protection funds referred to in the Law to Regulate the Activities of Savings and Loan Cooperative Societies and the Law of Popular Savings and Credit;

IV. The representative offices of foreign financial entities referred to in the Law of Credit Institutions, as well as representative offices of foreign brokerage houses referred to in the Securities Market Law;

V. Currency exchange centers, money transmitters, unregulated multiple-object financial societies;

VI. Other natural or legal persons who, without being entities or financial entities, carry out activities provided for in the laws regulating them, and are subject to the supervision of the Commission.

VII. Members of the board of directors, sole administrator, general managers, executives, officials, employees, or persons holding a position, mandate, commission, or any other legal title granted by the entities and financial entities to third parties for the conduct of their operations, who have directly incurred or ordered the conduct that is the subject of the infraction.

VIII. Societies authorized to operate with novel models under the Law to Regulate Technology Financial Institutions.

ARTICLE THREE.- The authority to warn the infringer is delegated to the President, Legal Vice President, Director General of Crimes and Sanctions, and the Administrative Sanctions Coordinators A, B, and C, in accordance with the provisions of the following legal instruments: Law of Credit Institutions, Law to Regulate Financial Groupings, General Law of Credit Auxiliary Organizations and Activities, Law of Investment Societies, Law of Investment Funds, Securities Market Law, Law of Popular Savings and Credit, Law to Regulate the Activities of Savings and Loan Cooperative Societies, Law to Regulate Credit Information Societies, Law of Credit Unions, Law for the Transparency and Ordering of Financial Services, and Law to Regulate Technology Financial Institutions, taking into consideration the requirements contemplated in such instruments for such purposes.

ARTICLE FOUR.- The authority to cancel the registration granted by the Commission referred to in article 81-B of the General Law of Credit Auxiliary Organizations and Activities, for the circumstances indicated in article 81-D, fractions I, II, III, V, VI, VII, and VIII of the aforementioned legal instrument, is delegated to the President, Legal Vice President, and Director General of Crimes and Sanctions of the National Banking and Securities Commission, interchangeably.

Likewise, the authority to cancel the registration granted by the National Banking and Securities Commission referred to in article 225 of the Securities Market Law, for the cases indicated in fractions I, II, III, and V of article 227 Bis of the aforementioned law, is delegated to the public officials mentioned in the preceding paragraph.

TRANSITORY PROVISIONS

FIRST.- This Agreement shall enter into force the day following its publication in the Official Gazette of the Federation.

SECOND.- The "Agreement by which the Board of Directors of the National Banking and Securities Commission Delegates to the President, Legal Vice President, Director General of Crimes and Sanctions, and Assistant Directors General of Sanctions A and B, of the said Commission, the Authority to Impose Administrative Sanctions," published in the Official Gazette of the Federation on November 21, 2014, and its subsequent modifications, are hereby repealed.