Board Resolution No. 151/2015 Approving the Modification of the Regulation on Monetization, Distribution and Destruction of Monetary Material

BOARD RESOLUTION NO. 151/2015

SUBJECT: TREASURY MANAGEMENT - APPROVES THE MODIFICATION OF THE REGULATION ON MONETIZATION, DISTRIBUTION AND DESTRUCTION OF MONETARY MATERIAL

SEEN:
The Political Constitution of the State promulgated on February 7, 2009.
Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).
The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005 and subsequent modifications.
Law No. 483 of January 25, 2014 of the Plurinational Notary.
The Regulation on Monetization, Distribution and Destruction of Monetary Material, approved by Board Resolution No. 061/2015 of April 28, 2015.
Report BCB-GTES-SOMM-DOMM-INF-2015-13 of August 21, 2015, from the Treasury Management.
Report BCB-GAL-SANO-INF-2015-336 of August 24, 2015, from the Legal Affairs Management.

CONSIDERING:
That the Political Constitution of the State establishes in its Article 328 that the attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, are: to determine and execute monetary policy, execute exchange policy, regulate the payments system, authorize the issuance of currency and administer international reserves. That by virtue of the provisions in Articles 1 and 3 of Law No. 1670, the BCB is the sole monetary and exchange authority of the country with administrative, technical and financial competence and specialized regulatory powers of general application, being empowered to formulate policies on monetary, exchange and payments system matters. That the aforementioned Law in its Articles 10, 11, 13 and 54, paragraphs a), o) and m), establishes the functions of the BCB regarding the issuance of banknotes and metal coins, as well as the attributions of the Board to authorize and supervise the printing, issuance and destruction of monetary material, being empowered to dictate the norms and adopt the general decisions that were necessary for its compliance. That in accordance with Article 30 of Law No. 1670, all financial intermediation entities and financial services, whose operation is authorized by the Superintendency of Banks and Financial Entities, remain subject to the normative competence of the BCB, regarding their relationship as monetary, exchange and payments system authority. That Article 67 of the Statute of the Central Bank of Bolivia establishes that the Monetary Operations Management is responsible for establishing the requirements for the acquisition, distribution, destruction and administration of monetary material. That Article 26 of the Plurinational Notary Law, establishes that government notaries will exercise notarial service on the facts, acts and legal businesses in which central level State entities or the autonomous territorial entities of their jurisdiction intervene, observing the provisions provided in the aforementioned Law. That by Board Resolution No. 065/2015 the Regulation on Monetization, Distribution and Destruction of Monetary Material was approved, in force as of May 4, 2015. That the Treasury Management through Report BCB-GTES-SOMM-DOMM-INF-2015-13, recommends the modification of Article 14 of the Regulation on Monetization, Distribution and Destruction of Monetary Material, and requests the Legal Affairs Management to carry out the corresponding legal analysis. That the Legal Affairs Management through Report BCB-GAL-SANO-INF-2015-336 concludes that the modification of the Regulation on Monetization, Distribution and Destruction of Monetary Material in the terms expressed in Report BCB-GTES-SOMM-DOMM-INF-2015-13, is legally procedent, as it is supported by the current legal system, being the competence of the Board of the Issuing Entity to consider its approval by two-thirds of the votes of the totality of its members, in
accordance with the provisions in paragraph o) of Article 54 of Law No. 1670 and numeral 29 of Article 11 of the Statute of the BCB.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Approve the Modification of Article 14 of the Regulation on Monetization, Distribution and Destruction of Monetary Material, according to the following terms:

1/3. R.D. No. 151/2015

The verification of the monetary material to be destroyed will be carried out by a group composed of the Treasury Manager or a server of the GTES designated by him, the Deputy Manager of Monetary Material Operations, the Head of the Unused Bills Area, a representative designated by the General Manager and a Notary of Faith. These last two must supervise the complete destruction process and give evidence of the same. In each destruction session the corresponding Record will be drawn up, leaving evidence of the cuts, number of packages, number of pieces, value of the destroyed material and of the verification by sampling of said material. The Record will be signed by all participants.

SHOULD READ:
"Article 14. (Supervision)
The verification of the monetary material to be destroyed will be carried out by a group composed by the Treasury Manager or a server of the GTES designated by him, the Deputy Manager of Monetary Material Operations, the Head of the Unused Bills Area, a representative designated by the General Manager and the Government Notary. These last two must supervise the complete destruction process and give evidence of the same. In each destruction session the corresponding Record will be drawn up, leaving evidence of the cuts, number of packages, number of pieces, value of the destroyed material and of the verification by sampling of said material. The Record will be signed by all participants."

Article 2.- This modification enters into force as of its approval.

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

La Paz, August 25, 2015

NMI/
Paulo Zabaleta Estrada

Alvarez Alandia
Sergio Velarde Vera

Reynaldo Yujra Segarra
Pablo Rivera