Regulatory Alerts2013-04-19 | RESOLUCION DE DIRECTORIO Nº 035/2013Added · Updated
Board Resolution No. 035/2013
The Central Bank of Bolivia amends Chapter VIII of the Check Regulation to expand the supervisory framework for check operations. The amendment adds Article 40, which authorizes the Financial System Supervision Authority (ASFI) to issue specific regulations for check provision and operations, supervise consumer defense and fraud prevention policies, and verify the public availability of check-related fees. These modifications take effect immediately upon approval.
BOARD RESOLUTION NO. 035/2013 SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES MODIFICATIONS TO THE CHECK REGULATION
HAVING REVIEWED: 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 Check Regulation approved by Board Resolution No. 188/2012 of November 6, 2012. The reports from the Financial Entities Management BCB-GEF-SASF-DSP-INF-2013-72 of March 12, 2013, and BCB-GEF-SASF-DSP-INF-2013-80 of March 25, 2013. The reports from the Legal Affairs Management BCB-GAL-SANO-INF-2012-77 of March 14, 2013, and BCB-GAL-SANO-INF-2013-98 of March 28, 2013. The Internal Communication from the Financial Entities Management BCB-GEF-SASF-DSP-CI-2013-54 of March 14, 2013.
CONSIDERING: That the Political Constitution of the State establishes in its article 328 that it is an attribution 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 according 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 handling, use, and investment of savings, are of public 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, being subject to its regulatory competence all financial intermediation and financial services entities authorized by the Superintendence of Banks and Financial Entities, currently named the Financial System Supervision Authority (ASFI).
That Law No. 1488 in its articles 4 and 154, items 4 and 6, determines that financial intermediation and auxiliary financial services activities will be exercised by financial entities authorized by the ASFI, an Institution that has as an attribution, among others, to supervise natural or legal persons who carry out auxiliary financial intermediation activities, as well as, to incorporate into its scope of competence, in accordance with the BCB, other persons or entities that carry out financial intermediation activities.
That the Financial Entities Management, through Reports BCB-GEF-SASF-DSP-INF-2013-72 and BCB-GEF-SASF-DSP-INF-2013-80, establishes the need to modify the current Regulation to clarify and strengthen the supervision activities carried out by the ASFI, granting this entity the faculty to issue specific regulations for the provision and operation with checks.
That according to reports BCB-GAL-SANO-INF-2013-77 and BCB-GAL-SANO-INF-2013-98, the Legal Affairs Management establishes that the modification to the Check Regulation is legally appropriate.
That, the Board of Directors of the BCB, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulations of general application, and internal rules, being empowered to issue norms and adopt general decisions that may be necessary for the fulfillment of the functions, competencies, and faculties assigned by Law to the Issuing Entity, as established in articles 44 and 54, item o) of Law No. 1670 and articles 9, 11, and 24 of the BCB Statute.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1. Modify Chapter VIII of the Check Regulation in the following terms:
WHERE IT SAYS: CHAPTER VIII SUPERVISION
Article 39. (Supervision). The BCB, through the Financial Entities Management, will carry out supervision of operations carried out with checks, their clearing, and settlement. In this framework, it may: a. By Board Resolution, determine the maximum tariffs, commissions, and other charges applicable to the use of checks. b. Request from the ASFI reviews of the contingency systems of check issuers, as well as special audits to the issuers regarding their operation. If in the exercise of these tasks the BCB identifies indications of regulatory or operational non-compliance, it will communicate the fact to the supervision body for the corresponding process.
SHOULD SAY: “CHAPTER VIII SUPERVISION AND OVERSIGHT
Article 39. (Supervision). The BCB, through the Financial Entities Management, will carry out supervision of operations carried out with checks, their clearing, and settlement. In this framework, it may: a. By Board Resolution, determine the maximum tariffs, commissions, and other charges applicable to the use of checks. b. Request from the ASFI reviews of the contingency systems of check issuers, as well as special audits to the issuers regarding their operation. If in the exercise of these tasks the BCB identifies indications of regulatory or operational non-compliance, it will communicate the fact to the supervision body for the corresponding process.
Article 40. (Specific Regulation and Oversight). Within the framework of this Regulation, the ASFI: I. In coordination with the BCB, will issue specific regulations for the provision and operation with checks by financial intermediation entities and Electronic Clearing Chambers, will verify their compliance, and will exercise oversight within its scope of competence. II. Will define and supervise consumer defense policies and operational measures for fraud prevention. III. Will verify that the tariffs, commissions, or other charges charged by check issuers are available for public consultation.”
Article 2.- The modifications to the Check Regulation will enter into force from their approval.
Article 3.- The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, April 2, 2013
Marcelo Zabalaga Estrada
Gustavo Blacutt Alcalá Abraham Pérez Alandia
Hugo Dorado Araníbar Rafael Boyán Téllez
Rolando Marín Ibáñez