RESOLUTION No. JPRM-2022-018-M

THE MONETARY AND FINANCIAL POLICY BOARD

CONSIDERING:

That, Article 226 of the Constitution of the Republic of Ecuador prescribes that public servants and persons acting by virtue of state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law;

That, Article 227 ibidem states that the Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others;

That, the first paragraph of Article 303 of the Constitution of the Republic determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and shall be implemented through the Central Bank of Ecuador;

That, Article 36.2 of the Organic Monetary and Financial Code provides: "The Central Bank of Ecuador, to carry out its operations, may open and maintain current accounts in its books for:

1. National financial entities and public sector entities;
2. Foreign banks, central banks; international financial institutions and, when necessary, foreign governments, international organizations, and donor organizations; and,
3. Entities participating in the Securities Market, except issuers.

The Central Bank of Ecuador will not open current accounts for natural persons.

The Monetary and Financial Policy Board shall prescribe the conditions for opening current accounts in the books of the Central Bank of Ecuador."

That, Article 47.1 supra created the Monetary and Financial Policy Board as part of the Executive Branch, responsible for the formulation of monetary policy, the highest governing body of the Central Bank of Ecuador, and determines its composition;

That, Article 47.6 of the same Code, regarding the functions of the Monetary and Financial Policy Board, among others, establishes: "(...) 1. Formulate policy in the monetary sphere and observe its application by the Central Bank of Ecuador, to

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preserve the integrity and sustainability of the dollarization monetary system and the financial system, in accordance with the provisions of this Code; (...) 7. Formulate the policy for the operations of the Central Bank of Ecuador; (...) 26. Those others conferred by law.

For the fulfillment of these functions, the Monetary and Financial Policy Board shall issue regulations in matters within its competence, without being able to alter legal provisions."

That, Article 128 of the Organic Administrative Code establishes: "Normative act of an administrative nature. It is any unilateral declaration made in the exercise of an administrative competence that produces general legal effects, which is not exhausted with its compliance and directly."

That, Article 99 of the Statute of the Legal and Administrative Regime of the Executive Branch, in its pertinent part states: "Normative acts may be repealed or reformed by the competent authority to do so when deemed convenient. (...)";

That, through Resolution No. JPRM-2022-003-M, of January 20, 2022, the Monetary and Financial Policy Board regulated the "Opening of Current Accounts at the Central Bank of Ecuador," in which the types of entities that can open and maintain current accounts at the Central Bank of Ecuador and the general conditions that must be met for their opening are established;

That, in the second transitional provision of the aforementioned Resolution No. JPRM-2022-003-M, it was established: "Those entities that on the date of entry into force of this resolution maintain current accounts at the Central Bank of Ecuador and are not within the type of entities authorized to maintain a current account, according to current regulations, must close said accounts within six (6) months.

Upon expiration of the aforementioned period and if the accounts have not been closed, the Central Bank of Ecuador will categorize them as immobilized and will require the legal representative of said entities to indicate the account in the national financial system into which said resources must be transferred."

That, the Monetary and Financial Policy Board, in an ordinary session by mixed modality, on July 7, 2022, reviewed the proposal sent via Memorandum No. BCE-BCE-2022-0139-M, of June 24, 2022, by the General Manager of the

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Central Bank of Ecuador to the President of the Monetary and Financial Policy Board; as well as, the technical report No. BCE-SGSERV-2022-027 / BCE-DNSF-326-2022, of June 23, 2022, and the legal report No. BCE-CGJ-085-2022, of June 23, 2022; and,

In exercise of its functions and in accordance with Article 47.7 of the Organic Monetary and Financial Code, the Monetary and Financial Policy Board resolves:

REFORM THE REGULATION ON OPENING CURRENT ACCOUNTS AT THE CENTRAL BANK OF ECUADOR

Sole Article.- Substitute the second transitional provision of Resolution No. JPRM-2022-003-M, of January 20, 2022, with the following text:

"SECOND: Those entities that on the date of entry into force of this resolution maintain current accounts at the Central Bank of Ecuador and are not within the type of entities authorized to maintain a current account, according to current regulations, must close said accounts by July 31, 2023.

Upon expiration of the aforementioned period and if the accounts have not been closed, the Central Bank of Ecuador will categorize them as immobilized and will require the legal representative of said entities to indicate the account in the national financial system into which said resources must be transferred."

FINAL PROVISION.- This resolution shall enter into force from its issuance, without prejudice to its publication in the Official Register.

Its publication on the institutional website is entrusted to the Document Management and Archive Directorate of the Central Bank of Ecuador.

COMMUNICATE.- Given in the Metropolitan District of Quito, on July 7, 2022.

THE PRESIDENT

Dr. TATIANA MARIBEL RODRÍGUEZ CERÓN

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The aforementioned resolution was signed by Dr. Tatiana Maribel Rodríguez Cerón, - President of the Monetary and Financial Policy Board, in the Metropolitan District of Quito, on July 7, 2022.- I CERTIFY.

ADMINISTRATIVE SECRETARY

Attorney MARÍA ALEXANDRA GUERRERO DEL POZO