Banco Central de Bolivia

Directorio

BOARD RESOLUTION NO. 134/2015

SUBJECT: FINANCIAL ENTITIES MANAGEMENT - APPROVES THE REGULATION ON PAYMENT SERVICES, ELECTRONIC PAYMENT INSTRUMENTS, COMPENSATION AND SETTLEMENT

VIEWED:

The Political Constitution of the State of February 7, 2009.
The Commercial Code approved by Decree-Law No. 14379 of February 25, 1977.
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia.
Law No. 164 on Telecommunications and Information and Communication Technologies of August 8, 2011.
Law No. 393 of August 21, 2013, on Financial Services.
The Regulation on Electronic Clearing Chambers and Compensation and Settlement Services approved by Board Resolution of the Central Bank of Bolivia-BCB No. 017/2008 of February 12, 2008 and modified by Board Resolution No. 158/2011 of December 13, 2011.
The Payment Services Regulation approved by Board Resolution No. 121/2011 of September 27, 2011 and modified by Board Resolutions No. 059/2012 of May 22, 2012, No. 100/2013 of July 30, 2013 and No. 025/2015 of February 10, 2015.
The Electronic Payment Instruments Regulation approved by Board Resolution No. 126/2011 of October 4, 2011 and modified by Board Resolutions No. 025/2012, No. 060/2012, No. 022/2013 and No. 025/2015 of February 23, 2012, May 22, 2012, March 5, 2013 and February 10, 2015, respectively.
The Regulation on Securities Depository Entities and Securities Compensation and Settlement, issued by the Superintendence of Pensions, Securities and Insurance through Administrative Resolution SPVS-IV No. 967 of December 13, 2002.
The Regulation for Electronic Card Administration Companies, issued by the Financial System Supervision Authority through Resolution ASFI No. 788/2014 of October 24, 2014.
The report from the Financial Entities Management BCB-GEF-SSPSF-DVSP-INF-2015-50 of June 25, 2015.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2015-270 of July 23, 2015.

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CONSIDERING:

That the Political Constitution of the State establishes in its article 328 that it is an attribute of the Central Bank of Bolivia-BCB 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 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 Central Bank of Bolivia-BCB has as its objective to ensure the stability of the internal purchasing power of the national currency, for which it formulates policies of general application in monetary and payment system matters, with all financial intermediation and financial services entities authorized by the Superintendence of Banks and Financial Entities, currently named the Financial System Supervision Authority-ASFI, being subject to its regulatory competence.

That Law No. 393 on Financial Services, in paragraph III of article 8, establishes that the Financial System Supervision Authority-ASFI will issue specific regulation and supervise its compliance within the framework of the regulation issued by the Central Bank of Bolivia-BCB in the scope of the payment system.

That article 124 of the aforementioned Law establishes that operations carried out within the framework of the services provided by financial entities may be carried out through electronic means.

That the Commercial Code establishes in its article 816 the possibility of concluding contracts between non-present parties, a modality in which contracts concluded by cable, telegram, radiogram or other analogous means are included.

That Law No. 164 on Telecommunications and Information and Communication Technologies, in its article 78, establishes that acts or business transactions carried out by a natural or legal person in a digital document and approved by the parties through a digital signature concluded by electronic means or other of greater technological advancement, the electronic data message and the digital signature have legal and evidentiary validity.

That the Regulation on Securities Depository Entities and Securities Compensation and Settlement, issued by the Superintendence of Pensions, Securities and Insurance through Administrative Resolution SPVS-IV No. 967 of December 13, 2002, in its article 109, establishes that the provisions contained in title VI "Compensation and Settlement of Operations" of the Regulation will be adapted based on the regulation for compensation and settlement in clearing chambers issued by the Central Bank of Bolivia within the scope of its attributes and functions provided by Law.

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That the Regulation for Electronic Card Administration Companies, issued by the Financial System Supervision Authority through Resolution ASFI No. 788/2014 of October 24, 2014, regulates the process of constitution, incorporation and obtaining of the Operating License, as well as the operation of Electronic Card Administration Companies, within the framework of Law No. 393 on Financial Services and the provisions issued by the Central Bank of Bolivia-BCB.

That the report from the Financial Entities Management indicates that due to the complementary nature of their regulatory objects, it is recommended to unify the Regulations on Payment Services, Electronic Payment Instruments and Electronic Clearing Chambers and Compensation and Settlement Services, considering the definitions and references established in Law No. 393 on Financial Services and in Law No. 164 on Telecommunications and Information and Communication Technologies.

That the Report from the Legal Affairs Management indicates that there is no legal impediment for the Board of Directors of the Central Bank of Bolivia-BCB to consider the approval of the draft Regulation on Payment Services, Electronic Payment Instruments, Compensation and Settlement and recommends its consideration.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the Regulation on Payment Services, Electronic Payment Instruments, Compensation and Settlement in its Seven Titles, 67 Articles and two final provisions, which, as an annex, form part of this Resolution, with effect from the date of approval.

Article 2.- Repeal, from the entry into force of this Resolution, Board Resolutions No. 017/2008 of 12.02.08, No. 158/2011 of 13.12.11, No. 121/2011 of 27.09.11, No. 059/2012 of 22.05.12, No. 100/2013 of 30.07.13, No. 126/2011 of 04.10.11, No. 025/2012 of 23.02.12, No. 060/2012 of 22.05.12, No. 022/2013 of 05.03.13 and No. 025/2015 of 10.02.15.

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

La Paz, July 28, 2015

Marcelo Zabalaga Estrada

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Álvaro Rodríguez Rojas
Abraham Pérez Alandia
Ronald Polo Rivero
Sergio Velarde Vera

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ANNEX

REGULATION ON PAYMENT SERVICES, ELECTRONIC PAYMENT INSTRUMENTS, COMPENSATION AND SETTLEMENT

TITLE I

GENERAL PROVISIONS

Article 1 (Object). This Regulation has the following objectives:

I. To regulate, within the scope of the national payment system, the services and Electronic Payment Instruments-EPI and the compensation and settlement derived from these instruments.

II. To establish the general framework for the creation, constitution and operation of Clearing and Settlement Chambers and Payment Service Entities-PSE.

III. To regulate the surveillance and supervision activities of the national payment system.

Article 2 (Scope of application). The rules contained in this Regulation are applicable to:

a) Financial Intermediation Entities-FIE that have an operating license from the Financial System Supervision Authority-ASFI.

b) Payment Service Entities-PSE established in this Regulation and their participants.

c) Clearing and Settlement Chambers and their participants.

d) Securities Depository Entities and their participants.

e) Entities that carry out settlement activities.

f) Holders and users of Electronic Payment Instruments-EPI and natural and legal persons who accept them.

g) Investment Fund Management Companies-IFMC.

Article 3 (Definitions). For the purposes of this Regulation, the following definitions are established:

a) Electronic Payment Instrument-EPI Administration: Service provided by the issuer of an Electronic Payment Instrument-EPI and/or a Payment Service Entity-PSE consisting of the activities developed for the processing of Payment Orders-PO and their operations, such as: the issuance of Electronic Payment Instruments-EPI, provision of technology, terminals or electronic devices, security mechanisms, communication management, elaboration and dissemination of procedures, and other accessories.

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b) Acquiring: Contract through which a Financial Intermediation Entity-FIE or a Payment Service Entity-PSE, authorized by the Financial System Supervision Authority-ASFI, provides electronic means and affiliates natural and/or legal persons to process Payment Orders-PO made through Electronic Payment Instruments-EPI.

c) Acquirer: Entity authorized by the Financial System Supervision Authority-ASFI that carries out acquiring and is responsible for the management of Payment Order-PO information and the settlement of these with companies, entities, institutions or merchants.

d) Beneficiary: Natural or legal person who receives in their account funds originating from a Payment Order-PO.

e) Mobile Wallet: Electronic Payment Instrument-EPI that accredits a contractual relationship between the issuer and the holder of a Mobile Wallet account, exclusively in national currency, which allows originating electronic fund transfers, depositing and/or withdrawing cash, making inquiries and other ancillary activities.

f) Automated Teller Machines: Electronic devices that allow, in an enumerative and non-limiting manner, the withdrawal and deposit of cash, electronic fund transfers, redemption of open investment fund shares, loading Electronic Payment Instruments-EPI, balance inquiries, password changes and others. Automated teller machines are also known by their English acronym ATM (Automated Teller Machine).

g) Clearing and Settlement Chamber: Complementary financial services entity whose object is the automatic and centralized processing of the compensation and settlement of Payment Orders-PO generated from Payment Instruments-PI and other ancillary activities.

h) Electronic payment channels: These are devices (automated teller machines-ATM, point of sale terminals-POS) or communication networks (internet, fixed or mobile telephony) that allow processing Payment Orders-PO originated with Electronic Payment Instruments-EPI.

i) Loading of an Electronic Payment Instrument-EPI: Increase of the balance of the account associated with the Electronic Payment Instrument-EPI that allows its holder and/or user to make Payment Orders-PO with this instrument.

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Banco Central de Bolivia
Directorio

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j) Check: The check is a Payment Instrument-PI that represents an unconditional order to pay at sight drawn by the payer against their funds in a checking account.

k) Cycle: Continuous processing time period of Payment Orders-PO and securities transfer instructions that comprises the compensation and settlement of the Net Multilateral Positions-NMP of participants. The cycle may have sessions.

l) Commission: Amount contractually agreed that is received by the issuer of an Electronic Payment Instrument-EPI, Payment Service Entity-PSE, financial and non-financial correspondent or natural or legal company affiliated with an acquirer for the services provided.

m) Compensation: Process that comprises: the transmission, reconciliation and, where applicable, confirmation of Payment Orders-PO, securities transfer instructions, prior to settlement and the establishment of final or net positions (creditor or debtor) for each participant that replace the individual rights and obligations of each accepted Payment Order-PO or securities transfer.

n) Financial correspondent: These are Financial Intermediation Entities-FIE and complementary financial services companies regulated by the Financial System Supervision Authority-ASFI that through an express contract commit to carry out or provide payment services for a period determined by another Financial Intermediation Entity-FIE or Payment Service Entity-PSE, in exchange for a previously agreed commission.

o) Non-financial correspondent: Natural or legal person who by virtue of an express mandate commits to carry out or provide payment services for a period determined by a Financial Intermediation Entity-FIE or Payment Service Entity-PSE, in exchange for a previously agreed commission.

p) Account associated with an EPI: The account used to originate a Payment Order-PO, which may be a checking account, savings account, mobile wallet account and those that allow the use of credit and prepaid cards. These accounts may be linked to a cell phone number or email address for the processing of Payment Orders-PO.

q) Mobile wallet account: Account associated with the EPI mobile wallet, exclusively in national currency. Funds held in these accounts are not deposits, therefore they do not generate interest.
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Banco Central de Bolivia
Directorio

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r) Savings account: Account that allows natural or legal persons to hold funds in Financial Intermediation Entities-FIE intended for savings, on which Payment Orders-PO may be originated.

s) Checking account: Account that allows natural or legal persons to hold funds in banking entities mainly to make payments through Payment Orders-PO or checks.

t) Checking and reserve account: Account opened at the Central Bank of Bolivia-BCB by banking entities to constitute the legal reserve and to instruct and receive Payment Orders-PO.

u) Reserve account: Account opened at the Central Bank of Bolivia-BCB by Savings and Credit Cooperatives, Housing Financial Entities and Development Financial Institutions to constitute the legal reserve and to instruct and receive Payment Orders-PO.

v) Settlement account: Account opened at the Central Bank of Bolivia-BCB by participants of the Integrated Payment Settlement System-LIP to process Payment Orders-PO in that system. The following are considered settlement accounts:

checking and reserve accounts,
reserve accounts,
chamber clearing accounts, and
accounts opened by the BCB for other entities covered by the Regulation of the Integrated Payment Settlement System-LIP.

w) Chamber clearing account: Account opened at the Central Bank of Bolivia-BCB by Clearing and Settlement Chambers and by Securities Depository Entities for the settlement of the Net Multilateral Positions-NMP resulting from the compensation of Payment Instruments-PI and securities. These accounts cannot maintain balances at the end of the cycle.

x) Automatic account debit: Charge to the account of the ordering party, previously authorized by them, initiated by the beneficiary.

y) IT developments: Specialized computer programming for the issuance and/or administration of Electronic Payment Instruments-EPI and Payment Orders-PO that must comply with the regulations and procedures established by the supervision and surveillance bodies.

z) Electronic money: Monetary value stored in electronic devices that circulates through Payment Orders-PO. Electronic money is convertible into cash at nominal value at the request of the holder, user or beneficiary.
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aa) Electronic device or document: Electronic Payment Instrument-EPI that through communication networks, systems and specialized IT developments such as Internet Banking, Mobile Banking or others allows holders and/or users to originate Payment Orders-PO and/or make inquiries related to accounts associated with the instrument.

bb) Cash-out of Electronic Payment Instrument-EPI: Act by which an authorized entity delivers cash to the holder or user of the Electronic Payment Instrument-EPI charged to the associated account.

cc) Cash: Legal tender banknotes and coins.

d) Issuance of Electronic Payment Instrument-EPI: Action by which the Financial Intermediation Entity-FIE or Payment Service Entity-PSE authorized by the Financial System Supervision Authority-ASFI delivers an Electronic Payment Instrument-EPI to a holder or user.

ee) Issuer of Electronic Payment Instruments-EPI: Financial Intermediation Entity-FIE or Payment Service Entity-PSE authorized by the Financial System Supervision Authority-ASFI that in the course of its activity issues one or more Electronic Payment Instruments-EPI. The issuer is obligated to pay obligations generated by the use of the Electronic Payment Instrument-EPI.

ff) Payment Service Entities-PSE: These are complementary financial services companies authorized by the Financial System Supervision Authority-ASFI to provide the payment services contemplated in this Regulation.

gg) Accepting entity: Commercial or service establishment that accepts on its own behalf or on behalf of third parties Payment Orders-PO originated with one or more Electronic Payment Instruments-EPI.

hh) Securities Depository Entities: Joint-stock company with exclusive object authorized by the Financial System Supervision Authority-ASFI and registered in the Securities Market Registry, responsible for the custody, registration and administration of securities as well as the settlement and compensation of operations carried out with the securities subject to custody.

ii) Settlement entity: Entity with an account at the Central Bank of Bolivia-BCB that assumes responsibility for providing the necessary funds for the settlement of the Net Multilateral Positions-NMP of participants of a Clearing and Settlement Chamber, Payment Service Entity or Securities Depository Entity that do not have settlement accounts at the BCB. The settlement entity must be a participant in the Integrated Payment Settlement System-LIP, ```

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of Clearing and Settlement Chambers, Payment Service Entities or Securities Depository Entities.

jj) Due: Characteristic by which Payment Orders-PO originated and accepted must be settled or paid.

kk) Settlement guarantees: Mechanisms to ensure the settlement of Payment Orders-PO and/or securities, when a participant does not meet its obligations. Clearing and Settlement Chambers, Securities Depository Entities or Payment Service Entities-PSE will define the guarantees to be used within the framework of what is established in this Regulation as well as their execution procedure.

ll) Monetary guarantee: Deposit of a Payment Service Entity-PSE that backs the settlement of its operations.

mm) National draft: Electronic fund transfer within national territory for payment in cash, with the particularity that the ordering party and/or the beneficiary do not maintain an account associated with the Electronic Payment Instrument-EPI in the entities providing the service.

nn) Payment Instruments-PI: These are the physical or electronic forms or modalities that money takes and that allow a holder and/or user to transfer funds or execute Payment Orders-PO. The following are Payment Instruments-PI:

Cash
Check
Electronic devices or documents that allow originating fund transfers
Mobile wallet
Electronic cards (credit, debit and prepaid)

oo) Electronic Payment Instrument-EPI: Electronic device or document that allows the holder and/or user to originate Payment Orders-PO and/or make inquiries of accounts associated with the instrument. The Electronic Payment Instruments-EPI are:

The mobile wallet,
Electronic devices or documents that allow originating fund transfers,
Electronic cards (credit, debit and prepaid), and
Others authorized by the BCB Board of Directors.
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Banco Central de Bolivia
Directorio

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pp) Internet: Worldwide communication network that allows processing Payment Orders-PO through the use of electronic devices such as computers, mobile phones, tablets and others.

qq) Interconnection: Physical or virtual and logical connection of the IT developments of Financial Intermediation Entities-FIE, Payment Service Entity-PSE, Clearing and Settlement Chambers and Securities Depository Entities for the transmission of electronic information, among them Payment Orders-PO.

rr) Interoperable: Technical compatibility between the IT developments of Financial Intermediation Entities-FIE, Payment Service Entity-PSE, Clearing and Settlement Chambers and Securities Depository Entities for the processing of Payment Orders-PO.

ss) Computer Intrusion: Unauthorized access to IT developments with the purpose of manipulating them seeking to obtain some illegal benefit.

tt) Irrevocable or definitive: Condition or state by which Payment Orders-PO and accepted cannot be repudiated, denied, reversed or annulled by who generated them or by who received them.

uu) Consolidated limit: Maximum debtor amount in each monetary denomination and at the national level that a settlement entity can register in all compensation and settlement systems in which it participates.

vv) Net Multilateral Position Debtor Limit-NMPD: Maximum debtor amount in each monetary denomination and at the national level that a participant can register as Net Multilateral Position Debtor-NMPD during a cycle in a Clearing and Settlement Chamber, Payment Service Entity-PSE or Securities Depository Entity. This limit is not applicable to the Central Bank of Bolivia-BCB.

ww) Settlement: Debit or credit that settles obligations regarding Payment Orders-PO or securities between two or more participants, according to the results of the clearing. Settlement can be processed through: current and reserve accounts, reserve accounts, clearing chamber and settlement accounts.

xx) Payment Order-PO: Instruction or message by which a payer requests the transfer of funds to a beneficiary, deposits or withdraws cash, or makes cash withdrawals at merchants, using Payment Instruments-PI.

yy) Contactless Payment Order-PO: Payment Order-PO that for its processing requires that the Electronic Payment Instrument-EPI has physical contact with an electronic device, for example the insertion of a debit card in a Point of Sale Terminal-POS.

zz) Proximity Payment Order-PO: Payment Order-PO that is processed using a contactless reader (infrared reader or short-range communication or NFC for its acronym in English), not requiring that the Electronic Payment Instrument-EPI has physical contact with a device.

aaa) Payer: Natural or legal person who initiates or originates the Payment Order-PO from their account in favor of a beneficiary.

bbb) Payer authorizing: Natural or legal person who authorizes the automatic debit in their account in favor of a beneficiary.

ccc) Participant: Entity authorized in a Clearing and Settlement Chamber, Securities Depository Entities or a Payment Service Entity-PSE to send and receive Payment Orders-PO or securities.

ddd) Net Multilateral Position-NMP: Sum of the value of all Payment Orders-PO and securities in favor of a participant during a cycle, minus the sum of the value of all Payment Orders-PO and securities against it. If the result is positive, the participant is in a Net Multilateral Creditor Position-NMCP and if the result is negative, it is in a Net Multilateral Debtor Position-NMDP.

eee) Processing of Payment Order-PO: Series of actions performed by the entities covered by this Regulation from the sending of the Payment Order-PO request until its completion.

fff) Family remittance: Modality of international remittance corresponding to the sending of money as family aid.

ggg) International remittance: Electronic transfer of funds from/to abroad, with the particularities that the payer and/or the beneficiary do not maintain an account associated with the Electronic Payment Instrument-EPI.

hhh) Redemption of quotas: Operation through which the participant makes liquid or converts into cash the quotas of an open investment fund through the redemption of quotas executed by the Fund Administrator Society-FAAS.

iii) Payment service: Set of activities aimed at the issuance, acquiring, administration of Electronic Payment Instruments-EPI, processing of Payment Orders-PO, purchase and sale of foreign currency, sending and payment of international remittances, sending and receipt of internal transfers.

jjj) Session: Phase of a cycle in which clearings are carried out that do not involve settlement.

kkk) National payment system: With regard to this Regulation, the payment system is the set of rules, procedures, payment services, clearing and settlement, Electronic Payment Instruments-EPI and electronic payment channels that make possible the processing of Payment Orders-PO originated by natural and/or legal persons. The payment system makes possible the circulation of money in the national economy.

lll) Integrated Payment Settlement System-LIP of the BCB: It is the payment system administered by the Central Bank of Bolivia-BCB that allows its participants to carry out electronic transfers of funds between their participants.

mmm) Electronic card: Physical or virtual Electronic Payment Instrument-EPI that allows originating Payment Orders-PO and making inquiries about associated accounts. The following are considered electronic cards:

Credit card: Allows its holder and/or user to dispose of the funds of a credit line up to a financing limit.
Debit card: Allows its holder and/or user to dispose of the funds held in their associated account.
Prepaid card: Allows its holder and/or user to dispose of the stored money that was previously paid to the issuer of the Electronic Payment Instrument-EPI.

nnn) Point of Sale Terminal: Device that allows the use of Electronic Payment Instruments-EPI at points of sale of goods and services to process Contactless or Proximity Payment Orders-PO, the information is captured in paper vouchers or by electronic terminals designed to transmit the information. The Point of Sale Terminal is also known by its acronym in English: POS (Point of Sale).

ooo) Real time: Processing of Payment Orders-PO individually at the moment they are received.

ppp) Holder: Natural or legal person who maintains a contractual relationship with the issuer for the use of their Electronic Payment Instrument-EPI.

qqq) Electronic transfer of funds: These are money movements instructed electronically by the payer in favor of a beneficiary using Electronic Payment Instruments-EPI, which include in an enumerative and non-limitative manner electronic money movements between accounts belonging to the same natural and/or legal persons or to third-party accounts, transfers or remittances, automatic account debits, payments in case of being benefited by the provision of a service, purchase-sale of goods and foreign currency, payment for the fulfillment of obligations such as debts, rents, taxes and others.

rrr) User: Natural or legal person authorized by the holder to carry out operations with an Electronic Payment Instrument-EPI associated with their account. The user may or may not have a contractual relationship with the issuer of an Electronic Payment Instrument-EPI.

sss) Validity: Characteristic by which Payment Orders-PO originated with Electronic Payment Instruments-EPI have full legal effect between who issued them and who received them.

Article 4 (Operations of the Central Bank of Bolivia-BCB). Payment Orders-PO processed, cleared or settled in the systems administered by the Central Bank of Bolivia-BCB will be regulated in specific regulations.

Article 5 (General rights). The following are the rights of the entities covered by this regulation:

a) Participate in the electronic payment systems of the Central Bank of Bolivia-BCB. b) Receive remuneration for the services provided, which shall not exceed the maximum limits established by the Central Bank of Bolivia-BCB. c) Request information from the Central Bank of Bolivia-BCB related to the national payment system. d) Have access to information on the national payment system related to Electronic Payment Instruments-EPI that they administer.

Article 6 (General obligations). The following are the obligations of the entities covered by this regulation:

a) Comply with the regulations issued by the Central Bank of Bolivia-BCB and the Financial System Supervision Authority-ASFI as surveillance and supervision bodies. b) Send to the surveillance and supervision bodies within the established deadlines the information that these authorities require. c) The computer developments of Payment Service Entities-PSE, Clearing and Settlement Chambers and Securities Depository Entities must be interoperable and must interconnect.

d) Make available to the beneficiary the funds received by Payment Orders-PO immediately, in case of contingencies the funds must be delivered within a period not exceeding 3 business days from the start of the Payment Order-PO, after this period the funds will be returned to the payer.

e) Do not carry out automatic debits from the participant's or holder's accounts, unless they have express consent and authorization, which at all times will be renewable or revocable at the request of the payer.

f) Communicate to the surveillance and supervision bodies, prior to implementation, new services associated with the operations allowed within the framework of current legislation and regulations, as well as changes in operation, functioning and/or technology related to the processing of Payment Orders-PO.

g) Comply with the monitoring and control mechanisms on the legitimation of illicit gains defined by the Financial Investigations Unit with respect to money laundering and financing of terrorism.

h) Carry out permanent control and follow-up of the activities carried out by their financial and non-financial correspondents, developing adequate control procedures.

i) Hire special external audits of their operations and functioning related to Payment Orders-PO at the request of the Financial System Supervision Authority-ASFI.

j) Safeguard the databases preserving the integrity of the electronic records of the personal information of clients, of the data generated by the issuance and administration of Electronic Payment Instruments-EPI, processing of Payment Orders-PO and their clearing and settlement, financial, statistical and operational information, as well as any information they generate as a result of their activity for a minimum period of 10 years from the date of the last accounting entry. These data may only be disclosed with the written authorization of the holder and in the cases indicated in Article 473 of Law No. 393 on Financial Services.

k) Assume responsibility for the non-execution or defective execution of the Payment Orders-PO of the holder.

l) Have adequate software and hardware technological resources, with characteristics and procedures necessary to adequately carry out payment or clearing and settlement services.

m) Have secure and adequate computer developments, establish control and early warning measures in order to prevent the materialization of risks by computer intrusion, avoid the commission of fraud and others. These developments must generate reports that will be sent to the surveillance and supervision authorities and to the holder with the periodicity defined by these authorities.

n) In case of not having own partial or total technological support, maintain a contractual relationship with companies that provide technical support for payment, clearing and settlement services, in which, among others, the security mechanisms applied, the confidentiality and safeguarding of the transactions carried out are stipulated that ensure the continuity of the payment, clearing and settlement service.

o) Sign a written or electronic contract with the holder of the Electronic Payment Instrument-EPI in which the terms and conditions are stated clearly and understandably. For the subscription of contracts by electronic means, the holder must carry out the confirmation of acceptance of the service.

p) Financial entities cannot unilaterally modify the terms and conditions agreed in the contracts according to what is established in Article 86 of Law No. 393 on Financial Services. In case of modifying the contractual conditions, these must be communicated to the holder of the Electronic Payment Instrument-EPI and/or participant as well as to the Financial System Supervision Authority-ASFI with due advance notice and enabling the rescission of the contract in case the holder of the Electronic Payment Instrument-EPI and/or the participant does not agree with the modifications.

q) Provide clear, truthful, sufficient, timely, understandable and exact information, in physical or electronic form to the interested party in acquiring and/or using Electronic Payment Instruments-EPI, payment services or participating in clearing and settlement before the subscription of the contract.

r) Provide the holder or participant with a detail at least monthly of all transactions carried out including charges for commissions or other concepts, in physical or electronic form.

s) Attend to verbal and/or written claims due to a disagreement, prejudice, damage or grievance in the use of a payment service or reports of theft, cloning or loss of an Electronic Payment Instrument-EPI as established by the supervision body.

t) Apply self-assessments according to the formats established by the supervision and surveillance bodies and send the results to said bodies.

u) Do not carry out activities other than those authorized by the competent supervision body.

v) Others established by the surveillance and supervision bodies.

Article 7 (Tariffs and commissions).

I. The Central Bank of Bolivia-BCB, in coordination with the Financial System Supervision Authority-ASFI, and through a Resolution of its Board may approve the maximum applicable tariffs, commissions and other charges.

II. The entities covered by this regulation must send to the Financial System Supervision Authority-ASFI their initial tariffs, commissions and other charges for no objection and whenever they are modified, these must not exceed those established by the Central Bank of Bolivia-BCB.

Article 8 (Dissemination). Financial Intermediation Entities-FIE, Payment Service Entities-PSE, Clearing and Settlement Chambers and Securities Depository Entities covered by this Regulation must:

a) Train their personnel on the regulations issued by the surveillance and supervision bodies.

b) Inform the participants of the Clearing and Settlement Chambers and Securities Depository Entities about the internal rules and procedures.

c) Inform the holders of the Electronic Payment Instruments-EPI about their functionalities, the implemented innovations and the security measures for their correct use in order to prevent fraud and information infiltration.

d) Communicate to the holders and users of the Electronic Payment Instruments-EPI or participants their rights and obligations.

e) Display in a visible place the current tariffs, schedules and customer service numbers.

f) Others determined by the surveillance and supervision bodies.

Article 9 (Non-compliance with regulations). The entities covered by this Regulation that fail to comply with this rule will be sanctioned in accordance with current regulations.

TITLE II
PAYMENT SERVICES

CHAPTER I
ON THE PROVISION OF PAYMENT SERVICES

Article 10 (Permitted payment services).

I. Financial Intermediation Entities-FIE and Payment Service Entities-PSE authorized by the Financial System Supervision Authority-ASFI may provide one or more of the following payment services:

a) Issuance of Electronic Payment Instruments-EPI.

b) Administration of Electronic Payment Instruments-EPI.

c) Processing of Payment Orders-PO.

d) Acquiring.

e) Others to be approved by Resolution of the Board of the Central Bank of Bolivia-BCB.

II. Additionally, Payment Service Entities-PSE may carry out the clearing and settlement of Electronic Payment Instruments-EPI, prior to compliance with the rules referred to clearing and settlement chambers.

Article 11 (Other payment operations). The entities covered by this Regulation cannot carry out operations other than those contained in their operating license, in case of requiring the incorporation into their operation of any payment service or Electronic Payment Instrument-EPI, they must request authorization from the Financial System Supervision Authority-ASFI within the framework of what is established in paragraphs II and III of Article 120 of Law No. 393 on Financial Services, prior no objection of the Central Bank of Bolivia-BCB.

Article 12 (Obtaining operating license for Payment Service Entities-PSE).

I. For the provision of payment services, Payment Service Entities-PSE must have an operating license granted by the Financial System Supervision Authority-ASFI in accordance with what is established in articles 19 and 150 of Law No. 393 on Financial Services.

II. The operating license will specify the payment services that Payment Service Entities-PSE can carry out within the framework of what is established in this Regulation and in Law No. 393 on Financial Services.

III. The supervision body within the framework of its competencies may authorize Payment Service Entities-PSE to provide payment services different from those defined for their nature, prior coordination with the Central Bank of Bolivia-BCB.

IV. The Financial System Supervision Authority-ASFI will incorporate into its supervision scope the Payment Service Entities-PSE that habitually carry out these services, within the framework of paragraph III of article 19 of Law No. 393 on Financial Services.

Article 13 (Minimum requirements for the constitution of Payment Service Entities-PSE). The Financial System Supervision Authority-ASFI will determine the requirements for the constitution and obtaining of operating license for Payment Service Entities-PSE through specific regulation. Regarding technological, operational and administrative requirements, they must contemplate at least the following aspects:

a) Legal form of organization.

b) Definition of minimum capital.

c) When participating in clearing chambers, the establishment of monetary guarantee mechanisms or through collateralization of securities that back the continuity of their operations for the settlement of Payment Orders-PO.

d) Have a physical and technological infrastructure appropriate to the payment services to be provided, considering the number, complexity and nature in the provision of the same.

e) Have an organizational structure with defined, transparent and coherent lines of responsibility, as well as effective procedures for identification, measurement, monitoring, control, mitigation and disclosure of the risks to which the Payment Service Entity-PSE is or may be exposed, along with adequate internal control mechanisms, including administrative and accounting procedures. Such methods, procedures and mechanisms will be exhaustive and proportional to the nature, scale and complexity of the payment services provided by said entity.

f) Interoperability and interconnection with other computer developments for payment services.

g) Description of the operational process of payment services in all its stages and risk control mechanisms of settlement, within the framework of what is established by the surveillance and supervision authorities.

h) Contingency procedures and policies for business continuity.

i) Establish the rights, obligations and responsibilities of financial and non-financial correspondents.

j) Initial tariffs with the cost structure that supports them, within the framework of what is established in Article 7 Title I General Provisions of this Regulation.

Article 14 (Verification of requirements). It corresponds to the supervision body to verify the permanent compliance with the requirements established in this Regulation, and in case it considers necessary it will request the additional relevant information according to the nature of the service provided by each Payment Service Entity-PSE.

Article 15 (No objection to Financial Intermediation Entities-FIE). For the provision of payment services and according to their nature, Financial Intermediation Entities-FIE must process the no objection or authorization of the Financial System Supervision Authority-ASFI, according to the requirements that this authority defines in specific regulation.

Article 16 (Authorization for the clearing and settlement of Payment Orders-PO generated through Payment Instruments-PI). In case that the operation of Payment Service Entities-PSE implies a process of clearing and settlement of Payment Orders-PO, the Financial System Supervision Authority-ASFI will authorize the process verifying the compliance with the requirements established in Chapter V Of the Requirements for Clearing and/or Settlement of Transactions with Payment Instruments-PI and in Chapter VI Of the Clearing and Settlement of this Regulation.

Article 17 (Financial and non-financial correspondents).

I. Payment Service Entities-PSE may hire financial and non-financial correspondents who provide payment services on their behalf, for which they must sign a contract that specifies the rights and obligations between both parties. The Financial System Supervision Authority-ASFI will regulate the minimum content of said contracts.

II. Payment Service Entities-PSE will assume total responsibility for the payment services carried out by their financial and non-financial correspondents, assuming the economic damage caused in case of failing to provide the payment service.

CHAPTER II
ON PAYMENT SERVICE ENTITIES

Article 18 (Types of Payment Service Entities-PSE). With an enumerative and non-limitative character, the following entities authorized by the Financial System Supervision Authority-ASFI are considered as Payment Service Entities-PSE:

a) Electronic Card Administrator Companies: Legal person whose main activity is the administration of electronic cards, the processing