Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 142/2017

SUBJECT: FINANCIAL ENTITIES MANAGEMENT - APPROVES THE REVOCATION OF BOARD RESOLUTIONS NO. 118/2011 AND NO. 043/2014.

VIEWED:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia.
• Law No. 393 of August 21, 2013, on Financial Services.
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005 of October 21, 2005, and its modifications.
• Board Resolution No. 118/2011 of September 20, 2011.
• Board Resolution No. 043/2014 of May 6, 2014.
• Board Resolution No. 134/2015 of July 28, 2015.
• Board Resolution No. 071/2017 of May 23, 2017.
• The note from the Financial System Supervisory Authority ASFI/DSC/R-10467/2017 of June 6, 2017.
• The Report from the Financial Entities Management BCB-GEF-SSPSF-DVSP-INF-2017-54 of October 4, 2017.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-281 of October 6, 2017.

CONSIDERING:

• That the Political Constitution of the State establishes in its article 328 that it is an attribute of the Central Bank of Bolivia, 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 public interest and can only be exercised with prior authorization from the State, in accordance with the Law.
• That Law No. 1670 of the Central Bank of Bolivia, in its articles 1, 2, and 3, states that the object of the Issuing Entity is to ensure the stability of the internal purchasing power of the national currency and, within the framework of its administrative, technical, financial, and specialized regulatory competence, formulates policies of general application in monetary, exchange, and payment system matters.

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• That articles 30 and 37 of the aforementioned Law stipulate that entities of the financial intermediation and financial services system, whose operation is authorized by the Superintendency of Banks and Financial Entities, currently the Financial System Supervisory Authority, are subject to the regulatory competence of the Central Bank of Bolivia.
• That its article 54 subsection b) provides that it is an attribute of the Board of Directors of the Central Bank of Bolivia to regulate the administration of payment systems among authorized financial entities.
• That Law No. 393 on Financial Services establishes in paragraph III of article 8 that the Financial System Supervisory Authority will issue specific regulations and supervise their compliance within the framework of the regulations issued by the Central Bank of Bolivia in the area of the payment system.
• That the Board of Directors of the Central Bank of Bolivia, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulations of general application, and internal rules, and is empowered to issue norms and adopt general decisions that may be necessary for the fulfillment of functions, as well as to regulate the administration of payment systems among authorized financial entities, competencies and powers assigned by Law to the Issuing Entity, as established in articles 44 and 54 subsections b) and o) of Law No. 1670 and articles 9, 11, and 24 of the Statute of the Central Bank of Bolivia.
• That Board Resolution No. 118/2011 authorizes SERVIRED S.A. as a Clearing and Settlement Service Entity for the performance of clearing and settlement activities for electronic fund transfer orders (shared agencies and national money orders).
• That Board Resolution No. 043/2014 authorizes UNILINK S.A. as a Clearing and Settlement Service Entity for the performance of clearing and settlement activities for electronic fund transfer orders generated through electronic fund transfers, virtual offices, and national money orders.
• That Board Resolution No. 134/2015 regulates payment services, electronic payment instruments, clearing, and settlement.
• That Board Resolution No. 071/2017 modifies the Regulation on Payment Services, Electronic Payment Instruments, Clearing, and Settlement, and in its article 11 establishes the revocation of Board Resolutions No. 118/2011 and No. 043/2014 once SERVIRED S.A. and UNILINK S.A. initiate the process to obtain an Operating License from the Financial System Supervisory Authority.

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• That the Financial System Supervisory Authority, through note ASFI/DSC/R-10467/2017, communicated to the Central Bank of Bolivia that the companies UNILINK S.A. and SERVIRED S.A. are in the process of obtaining the Operating License.
• That the Report from the Financial Entities Management BCB-GEF-SSPSF-DVSP-INF-2017-54 recommends proceeding with the revocation of Board Resolutions No. 118/2011 and No. 043/2014.
• That the Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-281 states that there is no legal impediment for the Board of Directors of the Central Bank of Bolivia to consider the revocation of Board Resolutions No. 118/2011 and No. 043/2014 and recommends their approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- In compliance with what is established in article 11 of Board Resolution No. 071/2017, which modifies the First Final Provision of Board Resolution No. 134/2015, as of the date of this resolution, Board Resolutions No. 118/2011 and No. 043/2014 are revoked, which authorized ServiRed S.A. and UNILINK S.A. respectively, to carry out clearing and settlement activities.

Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 10, 2017

Pedro Ramos Sánchez
Luis Baudoin Olea
Ronald Pullo Rivero
Abraham Pérez Alandia
Sergio Velarde Vera