BOARD OF DIRECTORS

BOARD RESOLUTION NO. 163/2024

SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVAL OF THE REGULATIONS FOR THE INTEGRATED PAYMENT SETTLEMENT SYSTEM

VIEWED:

• The Political Constitution of the State of February 7, 2009 (CPE).
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 393 of August 21, 2013, on Financial Services.
• The Digital Signature Regulation for the Payment System, approved by Board Resolution No. 075/2020 of August 11, 2020.
• The Regulation of the Deferred Settlement Module of the Integrated Payment Settlement System, approved by Board Resolution No. 078/2020 of August 25, 2020.
• The Regulation of the Integrated Payment Settlement System, approved by Board Resolution No. 141/2020 of December 8, 2020.
• The Regulation of Payment Services, Electronic Payment Instruments, Compensation and Settlement, approved by Board Resolution No. 079/2022 of September 6, 2022, and its modification.
• The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 095/2022 of October 6, 2022.
• Report BCB-GEF-SSPSF-DVSP-INF-2024-73 of November 21, 2024, issued by the Financial Entities Management (GEF).
• Report BCB-GAL-SANO-DLBCI-INF-2024-491 of November 26, 2024, issued by the Legal Affairs Management (GAL).

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CONSIDERING:

That the Political Constitution of the State in its Articles 327 and 328 determines that the BCB has the function of maintaining the stability of the internal purchasing power of the currency to contribute to economic and social development and among its attributions is to regulate the payment system.

That Law No. 1670 in its Articles 1 and 3 establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with legal domicile in the city of La Paz, it is the only monetary and exchange authority of the country, with administrative, technical and financial competence and specialized normative faculties of general application, in the manner and, with the scope established in said Law; being able to formulate policies of general application, among others, in matters of the payment system.

That Paragraph III of Article 8 of Law No. 393 provides that the Financial System Supervision Authority - ASFI, will issue specific regulation and supervise its compliance within the framework of the regulations issued by the Central Bank of Bolivia - BCB, in the scope of the payment system and paragraph I of Article 340 establishes that the rules for the creation, constitution and operation of clearing and settlement chambers will be issued by the Central Bank of Bolivia - BCB.

That Article 44 and items a), b) and o) of Article 54 of Law No. 1670, establish that the Board of Directors of the BCB is its highest authority responsible for defining its policies, specialized regulations of general application and internal rules, with attributions, among others, to issue regulations and adopt general decisions that would be necessary for the BCB to fulfill the functions, competencies and faculties assigned to it by Law, regulate the administration of payment systems between authorized financial entities and approve, modify and interpret the Statute and its Regulations by two-thirds of the votes of all its members, without the need for any additional administrative act.

That the Digital Signature Regulation for the Payment System aims to regulate the use and acceptance of the Digital Signature to provide security and validity to digital documents within the framework of the national payment system, in addition, it contains definitions regarding the payment system used in the Integrated Payment Settlement System.

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BOARD OF DIRECTORS

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That the Regulation of the Deferred Settlement Module of the Integrated Payment Settlement System aims to regulate the operation, operability, the compensation and settlement processes derived from the processing of electronic payment orders in the Deferred Settlement Module of the Integrated Payment Settlement System as well as establish the rights, obligations and responsibilities of its administrator and its participants.

That the Regulation of the Integrated Payment Settlement System aims to regulate the operation and operability of the Integrated Payment Settlement System, and establish the rights and responsibilities of its administrator, participants and its users.

That the Regulation of Payment Services, Electronic Payment Instruments, Compensation and Settlement aims to regulate the national payment system, the payment services and electronic payment instruments, the compensation and settlement of these instruments.

That items 1) and 3) of Article 5 of the BCB Statute provide that its Board of Directors has normative competence to issue specialized regulations in the fields assigned by Law and technical competence for the formulation of policies and the application of instruments that allow it to fulfill its object.

That items 1), 13) and 30) of Article 10 of the BCB Statute, establish that the Board of Directors of the Issuing Entity has the attributions to approve general decisions and issue the regulations that are necessary for the BCB to fulfill the functions, competencies and faculties assigned to it by Law, approve the regulations for the operation of the payment system; as well as approve, modify and interpret the Statute and Regulations of the BCB by two-thirds of the votes of all its members, without the need for an additional administrative act.

That paragraph I of Article 24, provides that the Resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of its members present in a meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.

That Article 26 of the BCB Statute, stipulates that the Board of Directors pronounces on matters within its competence through Resolutions. It can also do so through decisions that will be expressly recorded in the Minutes. Likewise, every draft Resolution of

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Board of Directors must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the Resolution corresponds and by a report from the Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That report BCB-GEF-SSPSF-DVSP-INF-2024-73 from the GEF, concludes that the need has been identified to merge the Regulations of the Integrated Payment Settlement System and the Differentiated Settlement Module that regulate the operation of both modules to guarantee the consistency and uniqueness of the regulations and avoid duplication and regulatory gaps, improving and clarifying aspects related to the treatment of financial stress situations to promote timely actions by the BCB, recommending the approval by the Board of Directors of the BCB.

That in report BCB-GAL-SANO-DLBCI-INF-2024-491 it concludes that in accordance with Report BCB-GEF-SSPSF-DVSP-INF-2024-73 the proposal for the Regulation of the Integrated Payment Settlement System will allow merging the Regulation of the Integrated Payment Settlement System and the Regulation of the Deferred Settlement Module of the Integrated Payment Settlement System to regulate the operation of both modules and thus guarantee the consistency and uniqueness of the regulations and avoid duplication and regulatory gaps, improving and clarifying aspects related to the treatment of financial stress situations to promote timely actions by the BCB, being the proposal legally viable; recommending the approval by the Board of Directors of the BCB.

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

Article 1.- Approve the Regulation of the Integrated Payment Settlement System in its eight (8) Chapters, sixty-eight (68) Articles and three (3) Additional Provisions, which form an integral part of this Resolution as an Annex.

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Article 2.- This Resolution will enter into force from its publication.

Article 3.- From the entry into force of this Resolution, Board Resolutions No. 078/2020 of August 25, 2020 and No. 141/2020 of December 8, 2020 are repealed.

Article 4.- The Presidency and the General Management are entrusted with the Compliance of this Resolution.

La Paz, November 27, 2024

SIGNED. ROGER EDWIN ROJAS ULO, Gumerindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert, Miguel Angel Marañón Urquidi, Víctor Gonzalo Calisaya Gomez. ```

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ANNEX

REGULATION OF THE INTEGRATED PAYMENT SETTLEMENT SYSTEM

CHAPTER I

GENERAL PROVISIONS

Article 1. (Object).

The object of this Regulation is to regulate the operation and operability of the Integrated Payment Settlement System (LIP) and establish the rights, obligations and responsibilities of its Administrator, its participants and its Query Users.

Article 2. (Scope of application).

The rules contained in this Regulation will apply to the Central Bank of Bolivia (BCB), to the participants and Query Users of the LIP as applicable.

Article 3. (Acronyms).

This Regulation will use the following acronyms:

a) APS: Pension and Insurance Supervision and Control Authority; b) ASFI: Financial System Supervision Authority; c) BCB: Central Bank of Bolivia; d) CCL: Clearing and Settlement Chamber; e) COASIF: Financial System Analysis Committee; f) EIF: Financial Intermediation Entities; g) EATE: Electronic Card Management Company; h) EDV: Securities Depository Entity; i) ESP: Payment Service Companies; j) ESPM: Mobile Payment Service Companies; k) Fondo RAL: Liquid Asset Requirement Fund; l) IEP: Electronic Payment Instruments; m) IP: Payment Instruments; n) LBTR: Real-Time Gross Settlement; o) LIP: Integrated Payment Settlement System;

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p) LND: Deferred Net Settlement; q) LPMND: Multilateral Net Debit Position Limit; r) ME: Foreign Currency (only US dollars); s) MLD: Deferred Settlement Module; t) MLH: Hybrid Settlement Module; u) MMA: Help Desk Module; v) MN: National Currency; w) MNUFV: National Currency with value maintenance in relation to the Housing Development Unit; x) MVDOL: National Currency with value maintenance in relation to the US dollar; y) OP: Payment Order; z) PMN: Multilateral Net Positions; aa) RSPIEPCL: Regulation of Payment Services, Electronic Payment Instruments, Compensation and Settlement; bb) TGN: General Treasury of the Nation; cc) UIF: Financial Investigations Unit;

Article 4. (Definitions).

For the purposes of this Regulation, the following definitions are established:

a) Administrator. Entity that manages the Compensation and Settlement processes of PO and provides payment services. These services may include the issuance of PI, provision of Settlement Accounts to participants, provision of technology, terminals or electronic devices, security mechanisms, communication management, preparation and dissemination of procedures and other accessory activities;

b) Authenticity. Quality of the digitally signed electronic document that allows verifying the identity of the participant who generates it;

c) Beneficiary: Natural or legal person who receives in their account the funds coming from a PO;

d) Clearing and Settlement Chamber: Complementary financial services company authorized by the ASFI whose object is the automatic and centralized processing of the Compensation and Settlement of POs generated from EPIs and other accessory activities; ```

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e) Digital certificate. It is a digitally signed digital document by an authorized certifying entity that links signature verification data to a signatory and confirms their identity. The Digital Certificate is valid only within the validity period, indicated in the Digital Certificate;

f) Cycle: Continuous processing time period of POs that includes the Compensation and settlement of the PMNs of the participants. The Cycle can have sessions;

g) Collateral. Assets that the participant maintains at the BCB, whose purpose is to guarantee the credits granted within the operation of the LIP;

h) Compensation: Process that includes: the transmission, reconciliation and, where applicable, the confirmation of the POs 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 PO;

i) Contingency. Unforeseen event that causes interruptions or failures in the normal functioning of the payment system and that must be communicated in a timely manner to the Administrator of the LIP;

j) Intraday credit. Credit granted for a period of less than one business day;

k) Overnight credit. Credit with a maturity of one working day for the following;

l) Receiving Account: Account belonging to the holder of the EPI that receives the funds resulting from a PO;

m) Settlement Account. Account opened at the BCB by the participants of the LIP to process POs in the system. Settlement Accounts are considered: current and reserve accounts; reserve accounts; settlement accounts of Clearing and Settlement Chambers, the Securities Depository Entity or Payment Service Companies and; Settlement Accounts opened by the BCB for other entities covered by this Regulation;

n) BCB Debits. Charge made by the BCB in the accounts of financial entities participating in the LIP, previously authorized by them;

o) Declaration of Contingency. Statement made by a participant of the LIP, through a duly authorized official, upon the occurrence of an event that prevents the normal operation of a participant. The Declaration of Contingency must be timely and evaluated by the Administrator of the LIP for its acceptance or rejection according to the procedure established in the Operational Guides of the LIP modules. ```

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p) Digital document. It is any digital representation of legally relevant acts, facts or data, regardless of the medium used for its fixation, storage or archiving;

q) Electronic document. Data message created, sent, communicated, received and stored by electronic means transmitted through the LIP. Electronic is understood as the use of technology that has electrical, digital, magnetic, wireless, optical, electromagnetic or other similar properties;

r) Payment Service Companies: They are complementary financial services companies authorized by the ASFI that carry out the following payment services defined by the BCB: issuance, acquiring, administration of EPIs, processing of POs, purchase and sale of foreign currency, sending and payment of international remittances, sending and receiving of internal transfers;

s) Certifying entity. Entity that issues digital certificates and provides services related to Digital Certification.

t) Settlement entity. Participating entity, of Clearing and Settlement Chambers, Payment Service Companies or Securities Depository Entities with an account at the BCB, that assumes the responsibility of providing the necessary funds for the settlement of the PMNs of participants of a CCL, ESP or EDV that do not have Settlement Accounts at the BCB;

u) Originating entity: Participant of the MLD or of a CCL in which a PO originates through the associated account;

v) Receiving entity: Participant of the MLD, or of a CCL in which, through an associated account, the entity is the recipient of a PO;

w) Due. Characteristic by which POs originated and accepted in a payment system must be settled or paid;

x) Digital signature. It is the electronic signature that identifies only its holder, created by methods that are under the absolute and exclusive control of its holder, susceptible to verification and is linked to the data of the Digital Document in such a way that any modification of them reveals its alteration. It allows to ensure Authenticity, Integrity and non-repudiation;

y) Automatic digital signature. Digital signature generated by a computer system, where the holder of the Digital Certificate delegates its use for defined tasks in it;

z) Settlement guarantees: Mechanisms that allow ensuring the settlement of POs when a participant does not comply with its obligations. The Clearing and Settlement Chambers and ESPs will define the guarantees to be used within the framework of what is established in this Regulation, as well as their execution procedure; ```

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aa) Operational Guide. Document approved by the Financial Entities Management of the BCB that describes the processes and procedures of the LIP modules, their schedules, the use of electronic communication forms, encoders for the POs, the suspension procedures and Contingency of the participants;

bb) IT Guide. Document approved by the Systems Management of the BCB that describes the generation of digital certificates, communication aspects, Digital Signature and the determination of the structure of electronic documents for their processing in the LIP;

cc) Integrity. Characteristic of the electronic data message or Digital Document, both with Digital Signature, that indicates that they have not been altered in the transmission process from its creation by the sender to the reception by the recipient;

d) Interconnection: Physical or virtual connection of the computer systems of the EIFs, ESPs, Brokerage Agencies, Investment Fund Management Companies, Pension Fund Management Companies, Securities Depository Entities and Clearing and Settlement Chambers for the transmission of POs and other electronic information;

ee) Interoperable: Technical capacity of the computer systems of the EIFs, ESPs, Brokerage Agencies, Investment Fund Management Companies, Pension Fund Management Companies, EDVs, CCLs, for the processing of POs, through compatible interfaces;

ff) Electronic Payment Instrument: Device or Electronic Document that allows the holder to originate POs and/or make queries of accounts associated with the Instrument;

gg) Irrevocable or definitive. Condition or state by which accepted POs cannot be repudiated, denied, reversed or annulled by who generated them or by who received them;

hh) Multilateral Net Debit Position Limit: Maximum debtor amount in each currency denomination and at the national level that a participant can register as PMND during a Cycle in a CCL, ESP and MLD;

ii) Settlement: Debit or credit whose purpose is to settle obligations derived from POs between two or more participants, according to the results of the Compensation;

jj) Real-Time Gross Settlement. Continuous (real-time) settlement of money or value transfer operations individually, that is, one by one, without netting;

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kk) Hybrid Settlement. Settlement system that combines characteristics of a LBTR system and an LND system. In a hybrid settlement payment system, payments are settled based on available liquidity. In addition, algorithms are included for queue management and Compensation of operations to better take advantage of liquidity;

ll) Deferred Net Settlement: Form of settlement where obligations by POs between participants are processed by the net balance of obligations and at a later moment than the sending and processing of individual orders, that is, by Cycles;

mm) Electronic communication message. Electronic document under a specific format, whose object is the exchange of information between the BCB and the participants of the LIP;

nn) Payment Order. Instruction or message by which an orderer requests the transfer of funds in favor of a Beneficiary that, by way of example and not limitation, considers:

1) Electronic fund transfers between natural and/or legal persons, which include payments in case of being benefited by the provision of a service, purchase-sale of goods, purchase and redemption of shares of Open Investment Funds, as well as payment for the fulfillment of obligations (taxes and other debts);

2) Deposit or withdrawal of cash, loading and realization of electronic money and the realization of EPIs in stores (the cash comes from the activities inherent to commerce);

oo) Participant. Entity authorized by the BCB to issue (originating participant) or receive (receiving participant) electronic documents on its own behalf or on behalf of third parties in the LIP;

pp) Processing of Electronic Payment Orders: Sequence of actions that begin with the sending of the fund transfer request, its validation, acceptance and conclude when the PO is finalized, that is, once the funds are credited to the Receiving Account, at which moment the PO is considered definitive and concluded from an operational and legal point of view;

qq) Non-Repudiation. Guarantee that an electronic data message or a Digital Document both digitally signed, cannot be denied in their authorship and content;

rr) Session: Phase of a Cycle in which compensations are carried out that do not involve Settlement;

ss) National payment system: With regard to this Regulation, the payment system is the set of rules, procedures, payment services, Compensation and ```

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Liquidity, PI and payment channels that make it possible to process POs originated by natural and/or legal persons. The payment system makes possible the circulation of money in the national economy;

tt) Holder: Natural or legal person who maintains a contractual relationship with the issuer for the use of their EPI.

uu) Fund transfer. Movement of funds generated by a payment order.

vv) Query User. Entity authorized by the BCB and enabled in the LIP that accesses the electronic query services of balances and statements of its accounts at the BCB.

ww) Valid. Characteristic by which all electronic documents accepted by a payment system produce full legal effects between who issued them and who received them.

CHAPTER II

CHARACTERISTICS AND FUNCTIONALITIES OF THE INTEGRATED PAYMENT SETTLEMENT SYSTEM

Article 5. (Integrated Payment Settlement System).

I. The LIP is the electronic payment system of the BCB.

II. This system is composed of a set of interrelated modules that facilitate the Interconnection of the national payment system: MLH and MLD.

III. It operates under a hybrid settlement scheme, which combines the security and timely final settlement characteristics of LBTR with the efficiency in the use of liquidity of LND for the management of POs with independent operational and functional.

Article 6. (Objectives of the Integrated Payment Settlement System).

The objectives