Board Resolution No. 022/2013 Approving Modifications to the Regulation on Electronic Payment Instruments

BOARD RESOLUTION NO. 022/2013 SUBJECT: FINANCIAL ENTITIES MANAGEMENT — APPROVES MODIFICATIONS TO THE REGULATION ON ELECTRONIC PAYMENT INSTRUMENTS.

HAVING SEEN: The Political Constitution of the State approved by referendum on January 25, 2009, and promulgated on February 7, 2009. Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB). Law No. 1488 of May 5, 2004 on Banks and Financial Entities and its subsequent modifications. The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005 and its subsequent modifications. The Regulation on Electronic Payment Instruments approved by Board Resolution No. 126/2011 of October 4, 2011, modified by Board Resolution No. 025/2012 of February 23, 2012 and Board Resolution No. 060/2012 of May 22, 2012. The Report from the Financial Entities Management BCB-GEF-SASF-DSP-INF-2013-57 of February 27, 2013. The Reports from the Legal Affairs Management BCB-GAL-SANO-INF-2013-60 of March 1, 2013 and BCB-GAL-SANO-INF-2013-61 of March 4, 2013.

CONSIDERING: That the Political Constitution of the State establishes in its Article 328 that it is an attribute of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, to regulate the payment system. That pursuant to Article 331 of the Political Constitution of the State, financial intermediation activities, the provision of financial services, and any other activity related to the management, use, and investment of savings are of interest and can only be exercised with prior authorization of the State, in accordance with the Law. That Law No. 1670 provides in its Articles 2, 3, and 30 that the BCB's objective is to procure the stability of the internal purchasing power of the national currency, for whose fulfillment it formulates policies of general application in monetary and payment system matters, all entities being subject to its regulatory competence.

Article 1. Modify Articles 5, 8, 10, 16, and 28 of the Regulation on Electronic Payment Instruments, in the following terms:

SAYS:

Article 5 (Definitions). For the purposes of interpretation of this Regulation, the following definitions are established: a) Mobile Wallet: Electronic Payment Instrument (EPI) that evidences a contractual relationship between the issuer and the holder through the opening of a payment account (exclusively in national currency) to electronically execute payment orders and/or queries with a mobile device. b) ATMs: Machines equipped with electronic or electromechanical devices that allow users of financial services to make cash withdrawals, cash deposits, balance queries, fund transfers between accounts, or service payments, through the use of an EPI. ATMs are also known by their English acronym: ATM (Automated Teller Machine). c) Electronic Clearing Chamber (ECC): By ECC shall be understood the clearing chambers defined by Article 68 of Law No. 1488, which use electronic systems for the processing of their operations. They are financial auxiliary service companies whose sole object is the automatic and centralized processing of the clearing and settlement of payment instruments. d) Loading of an EPI: Action applied to assign a monetary value to an EPI that allows its holder and/or user to make electronic payment orders with this instrument. e) Commission: Amount contractually agreed, in national currency, that the issuer receives from the holder for the use and/or administrative services of an EPI. f) Payment Account: A record associated with an EPI that reflects the operations carried out with it. g) Electronic Money: Monetary value stored electronically. It has a direct equivalent with the value of legal tender banknotes and coins. h) Issuer: Entity authorized by the ASFI that, in the development of its activity, issues one or more electronic payment instruments and manages and/or administers their operation. i) Accepting Entity: Commercial or service establishment that accepts, on its own behalf or on behalf of third parties, the payment of goods or services with one or more electronic payment instruments. j) Cash-out: Action of converting electronic money into physical money. k) Enforceable: Characteristic by which payment orders generated with an EPI and accepted by a payment system must be settled. l) Cut-off Date: Scheduled deadline for the closing of the relationship of payments made with an EPI in a specific period. m) Electronic Payment Instrument - EPI: Instrument that electronically allows the holder and/or user to instruct payment orders, withdraw cash, and/or make queries of accounts related to the instrument. n) Irrevocable or Definitive: Characteristic by which payment orders generated with an EPI and accepted by a payment system cannot be denied, disputed, reversed, or annulled by the party that generated them or by the party that received them. o) Payment Order: Instruction or message by which the assignment and/or transfer of funds to the order of the beneficiary is requested. Includes electronic transfers. p) Electronic Fund Transfer Order: EPI that, through a computer system and communication networks, allows the holder to make payment orders. q) Operations Report: Document containing the summary of the management of an EPI in a specific period. r) Payment System: Set of instruments, procedures, and norms for the transfer of funds between natural and/or legal persons that are carried out using cash, checks, or other values, payment cards (credit, debit, and prepaid) up to electronic payment orders. Each of these payment instruments has its own characteristics, procedures, infrastructure, and clearing and settlement agreements. s) Credit Card: EPI that indicates that a credit line has been granted to its holder. Allows purchases and/or cash withdrawals up to a previously agreed limit. The granted credit can be settled in full at the end of a specific period or can be settled partially, taking the balance as extended credit. t) Debit Card: EPI that, through the maintenance of funds in a checking or savings account, allows the electronic execution of payment orders, cash withdrawal, and/or queries of the associated account. u) Prepaid Card: EPI in which a certain value is stored, previously paid to the issuer, through which the amount of consumption to be made with the card is anticipated, with which electronic payment orders can be made up to the value of the loaded amount. v) Holder: Natural or legal person who maintains a contractual relationship with the issuer for the use of their EPI. w) User: Natural or legal person authorized by the holder to carry out operations with an EPI associated with their account. x) Validity: Characteristic by which payment orders generated with an EPI and accepted by a payment system produce full legal effects between the party that issued them and the party that received them.

SHOULD SAY: "Article 5 (Definitions). For the purposes of interpretation of this Regulation, the following definitions are established: a) Mobile Wallet: Electronic Payment Instrument (EPI) that evidences a contractual relationship between the issuer and the holder through the opening of a payment account (exclusively in national currency) to electronically execute payment orders and/or queries with a mobile device. b) ATMs: Machines equipped with electronic or electromechanical devices that allow users of financial services to make cash withdrawals, cash deposits, quota redemptions, balance queries, fund transfers between accounts, or service payments, through the use of an EPI. ATMs are also known by their English acronym: ATM (Automated Teller Machine). c) Electronic Clearing Chamber (ECC): By ECC shall be understood the clearing chambers defined by Article 68 of Law No. 1488, which use electronic systems for the processing of their operations. They are financial auxiliary service companies whose sole object is the automatic and centralized processing of the clearing and settlement of payment instruments. d) Loading of an EPI: Action applied to assign a monetary value to an EPI that allows its holder and/or user to make electronic payment orders with this instrument. e) Commission: Amount contractually agreed, in national currency, that the issuer receives from the holder for the use and/or administrative services of an EPI. f) Payment Account: A record associated with the mobile wallet, which reflects the operations carried out with this instrument. g) Participation Account: An account in which the balances of participation quotas owned by the participant of an open-end investment fund are recorded, as well as the purchase and sale movements of quotas, as well as positive and negative returns, recorded by the increase or decrease in the value of the quota. h) Prepaid Card Account: A record that reflects the operations carried out with the prepaid card and that allows the issuer to control the movements of electronic money by holder. i) Electronic Money: Monetary value stored electronically. It has a direct equivalent with the value of legal tender banknotes and coins. j) Issuer: Entity authorized by the ASFI that, in the development of its activity, issues one or more electronic payment instruments and manages and/or administers their operation. k) Accepting Entity: Commercial or service establishment that accepts, on its own behalf or on behalf of third parties, the payment of goods or services with one or more electronic payment instruments. l) Cash-out: Action of converting electronic money into physical money. m) Enforceable: Characteristic by which payment orders generated with an EPI and accepted by a payment system must be settled. n) Cut-off Date: Scheduled deadline for the closing of the relationship of payments made with an EPI in a specific period. o) Electronic Payment Instrument - EPI: Instrument that electronically allows the holder and/or user to instruct payment orders, withdraw cash, and/or make queries of accounts related to the instrument. p) Irrevocable or Definitive: Characteristic by which payment orders generated with an EPI and accepted by a payment system cannot be denied, disputed, reversed, or annulled by the party that generated them or by the party that received them. q) Payment Order: Instruction or message by which the assignment and/or transfer of funds to the order of the beneficiary is requested. Includes electronic transfers. r) Electronic Fund Transfer Order: EPI that, through a computer system and communication networks, allows the holder to make payment orders. s) Operations Report: Document containing the summary of the management of an EPI in a specific period. t) Quota Redemption: Operation through which the participant makes liquid or converts into money the quotas of an open-end investment fund through the redemption of quotas executed by the Management Company. u) Payment System: Set of instruments, procedures, and norms for the transfer of funds between natural and/or legal persons that are carried out using cash, checks, or other values, payment cards (credit, debit, and prepaid) up to electronic payment orders. Each of these payment instruments has its own characteristics, procedures, infrastructure, and clearing and settlement agreements. v) Credit Card: EPI that indicates that a credit line has been granted to its holder. Allows purchases and/or cash withdrawals up to a previously agreed limit. The granted credit can be settled in full at the end of a specific period or can be settled partially, taking the balance as extended credit. w) Debit Card: EPI that, through the maintenance of funds in a checking, savings, or participation account in an open-end investment fund, allows the electronic execution of payment orders, cash withdrawal, quota redemptions, and/or queries of the associated account. x) Prepaid Card: EPI in which a certain value is stored, previously paid to the issuer, through which the amount of consumption to be made with the card is anticipated, with which electronic payment orders can be made up to the value of the loaded amount. y) Holder: Natural or legal person who maintains a contractual relationship with the issuer for the use of their EPI. z) User: Natural or legal person authorized by the holder to carry out operations with an EPI associated with their account. aa) Validity: Characteristic by which payment orders generated with an EPI and accepted by a payment system produce full legal effects between the party that issued them and the party that received them."

SAYS: Article 8 (Operations). Electronic payment instruments may be used in one or more of the following operations: a) Cash withdrawals from savings accounts, checking accounts, or credit lines. b) Cash deposits into savings accounts, checking accounts, or credit lines. c) Loading and cash-out of the EPI associated with payment accounts. d) Payments with the EPI. e) Fund transfers to another account or another EPI. f) Query of movements and balances.

SHOULD SAY: "Article 8 (Operations). Electronic payment instruments may be used in one or more of the following operations: a) Cash withdrawals from savings accounts, checking accounts, or credit lines. b) Quota redemptions from open-end investment funds. c) Cash deposits into savings accounts, checking accounts, or credit lines. d) Loading and cash-out of the EPI associated with payment accounts. e) Payments with the EPI. f) Fund transfers to another account or another EPI. g) Query of movements and balances."

SAYS: Article 10. (Acceptance of operations with an EPI). An operation carried out with an EPI is considered accepted when it has passed all the validations required by the issuer and therefore, can be cleared and/or settled.

SHOULD SAY: "Article 10. (Acceptance of operations with an EPI). An operation carried out with an EPI is considered accepted when it has passed all the validations required by the processing system and therefore can be cleared or settled under its rules and procedures."

SAYS: Article 16. (Issuance of electronic payment instruments). Entities authorized by the ASFI, hereinafter referred to as issuers, may issue electronic payment instruments linked to savings accounts, checking accounts, credit lines, and/or payment accounts. The accounts that underpin electronic payment instruments, except by judicial order, cannot be closed, restricted in their use, or suspended while the EPI remains valid and/or holds funds.

SHOULD SAY: "Article 16. (Issuance of electronic payment instruments). Entities authorized by the ASFI, hereinafter referred to as issuers, may issue electronic payment instruments linked to participation accounts of open-end investment funds, checking accounts, credit lines, and/or payment accounts. The accounts that underpin electronic payment instruments, except by judicial order, cannot be closed, restricted in their use, or suspended while the EPI remains valid and/or holds funds."

SAYS: Article 28. (Functionality). ATMs must allow, through the use of an EPI, to carry out one or more of the following operations: a) Withdrawal of cash from an account. b) Query of account movements and balances. c) Change of passwords. d) Payment of services. e) Fund transfers between own accounts and to third-party accounts. f) Deposit of money into the account through the mechanism provided by the ATM itself, in which banknotes or a check are inserted. g) Loading of an EPI. h) Other operations with an EPI.

SHOULD SAY: "Article 28. (Functionality). ATMs must allow, through the use of an EPI, to carry out one or more of the following operations: a) Withdrawal of cash from an account. b) Quota redemptions from open-end investment funds. c) Query of account movements and balances. d) Change of passwords. e) Payment of services. f) Fund transfers between own accounts and to third-party accounts. g) Deposit of money into the account through the mechanism provided by the ATM itself, in which banknotes or a check are inserted. h) Loading of an EPI. i) Other operations with an EPI."

Article 2.- The modifications to Articles 5, 8, 10, 16, and 28 of the Regulation on Electronic Payment Instruments will enter into force from their approval.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, March 5, 2013