Central Bank of Bolivia

Board

BOARD RESOLUTION NO. 173/2017

SUBJECT:

BOARD – MODIFICATION OF THE INTERNAL REGULATION FOR THE PREVENTION, DETECTION, CONTROL AND REPORT OF MONEY LAUNDERING, TERRORIST FINANCING AND/OR PREDICATE OFFENSES WITH A RISK MANAGEMENT APPROACH.

HAVING SEEN:

• The Political Constitution of the State promulgated on February 7, 2009.
• Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.
• The Internal Regulation for the Prevention, Detection, Control and Report of Money Laundering, Terrorist Financing and/or Predicate Offenses (ML, TF and/or PO) with a Risk Management Approach of the BCB approved by Board Resolution No. 112/2016 of June 22, 2016.
• The Manual of Operational Procedures for the Detection, Prevention, Control and Report of Money Laundering, Terrorist Financing and/or Predicate Offenses (ML, TF and/or PO) with a Risk Management Approach, approved by Administrative Resolution No. 001/2013 of January 2, 2013 issued by the UIF.
• Administrative Resolution No. UIF/064/2017 of August 29, 2017, of the Financial Investigations Unit (UIF).
• Circular EXT/UIF/DGE/5/2017 of October 19, 2017, of the UIF.
• Report BCB-DIR-RUIF-INF-2017-8 of November 29, 2017, of the Responsible Officer for coordination between the UIF and the BCB.
• Report BCB-GAL-SANO-DLBCI-INF-2017-386 of December 1, 2017, of the Legal Affairs Management.

CONSIDERING:

That the Political Constitution of the State in its Article 333 establishes that financial operations carried out by natural or legal persons, Bolivian or foreign, shall enjoy the right of confidentiality, except in judicial processes, in cases where the commission of financial crimes is presumed, in which fortunes are investigated and others defined by law. The instances called by law to investigate these cases shall have the authority to know said financial operations, without judicial authorization being necessary.

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//2. Board Resolution No. 173/2017

That the aforementioned Fundamental Norm in its Article 327 determines that the BCB within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency to contribute to economic and social development.

That Law No. 1670 in its Article 6 empowers the BCB to execute monetary policy and regulate the quantity of money and the volume of credit according to its monetary program, being able to this effect to issue, place and acquire securities and carry out other open market operations.

That said Law, in its Article 44 provides that the highest authority of the BCB is its Board, which is responsible for defining its policies, specialized regulations of general application and internal norms; as well as establishing administrative, operational and financial strategies of the BCB, approving their respective short and medium term programs.

That likewise in subsections a) and o) of its Article 54) determines that the Board of the BCB has the authority to issue the necessary norms so that the Issuing Entity complies with its functions, competencies and faculties assigned by Law; as well as to approve the Regulations, by two thirds of the votes of the totality of its members, without the need for any additional administrative act.

That the Internal Regulation for the Prevention, Detection, Control and Report of ML, TF and/or PO, with a Risk Management Approach of the BCB, in its Article 8 determines that the Responsible Officer must prepare and propose modifications or the update of said Regulation.

That the cited Regulation in its Article 61 determines that a copy of the Board Resolution modifying the Internal Regulation for the Prevention, Detection, Control and Report of ML, TF and/or PO with a Risk Management Approach, must be sent to the UIF within twenty (20) business days following its modification.

That the Manual of Operational Procedures for the Detection, Prevention, Control and Report of ML/TF and/or PO of the UIF, in its Article 1 provides that it is mandatory compliance for all obligated subjects, is intended to establish operational procedures to detect, prevent, control and report operations presumably linked to ML, TF and/or PO with a Risk Management Approach.

That said Manual in subsection d) of its Article 16, provides that the obligated subjects in the case of legal persons must minimally, among others, have a copy of the Tax Identification Number (NIT).

That the UIF through Administrative Resolution No. UIF/064/2017, in its first provision determines to modify the regulation for the detection, prevention, control and report of ML, TF and/or PO, regarding the presentation of the NIT, among which is subsection d)

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//3. Board Resolution No. 173/2017

of Article 16 of the Manual of Operational Procedures for the Detection, Prevention, Control and Report of Money Laundering, Terrorist Financing and/or Predicate Offenses, including the phrase "if applicable". Likewise, in its second provision it establishes that non-compliance will be sanctioned according to current regulations.

That, through Circular EXT/UIF/DGE/5/2017, addressed to the Responsible Officers before the UIF, it makes known, application and strict compliance, Administrative Resolution No. UIF/064/2017, of modification of operational procedures.

That in its Report BCB-DIR-RUIF-INF-2017-8, the Responsible Officer UIF of the BCB, concludes that through Administrative Resolution No. UIF/064/2017, the UIF modifies the Manual of Operational Procedures approved by Resolution 001/2013 of 01.02.2013, as far as the update of the Internal Regulation of the BCB for the Prevention, Detection, Control and Report of ML, TF and/or PO with a Risk Management Approach approved by Board Resolution No. 112/2016 of June 22, 2016 is concerned, including in subsection d) of Article 16, the words "if applicable".

That through Report BCB-GAL-SANO-DLBCI-INF-2017-386, the Legal Affairs Management concludes that the modification of the Internal Regulation for the Prevention, Detection, Control and Report of ML, TF and/or PO with a Risk Management Approach obeys the compliance of instructions issued by the UIF to the obligated subjects within the framework of the detection, prevention, control and report of ML/TF and/or PO and does not contravene the legal regulations issued by said entity, being the competence of the Board to consider its approval by two thirds of the votes of the totality of its members in accordance with what is established in subsection o) of Article 54 of Law No. 1670 and numeral 29) of Article 11 of the Statute.

THEREFORE,

THE BOARD OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1. Approve the modification to the Internal Regulation for the Prevention, Detection, Control and Report of ML, TF and/or PO with a Risk Management Approach, as follows:

WHERE IT READS:

Article 16 (Customer Identification – Legal Person).- The BCB, in the case of Legal Persons, must minimally have the following information:

a. Corporate Name. b. Type of commercial company.
c. Main Activity.

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//4. Board Resolution No. 173/2017

d. Copy of Tax Identification Number (NIT). e. Copy of the registration certificate in the Commercial Registry or registration in the Autonomous Governments of the Departments and/or Municipalities of the Plurinational State of Bolivia or another public institution that accredits its legal existence. f. Address of main office and branches. g. Bylaws or internal regulations of the legal person. h. Copy of the Deed of Social Constitution and its modifications.
i. Power of Attorney of the Legal Representative.
j. Commercial References. k. Telephone Numbers.
l. Financial Statements.
(...)

SHALL READ:

"Article 16 (Customer Identification – Legal Person).- The BCB, in the case of Legal Persons, must minimally have the following information:

a. Corporate Name. b. Type of commercial company.
c. Main Activity.
d. Copy of Tax Identification Number (NIT), if applicable (document not required for legal persons exempt by law from this obligation). e. Copy of the registration certificate in the Commercial Registry or registration in the Autonomous Governments of the Departments and/or Municipalities of the Plurinational State of Bolivia or another public institution that accredits its legal existence. f. Address of main office and branches. g. Bylaws or internal regulations of the legal person. h. Copy of the Deed of Social Constitution and its modifications.
i. Power of Attorney of the Legal Representative.
j. Commercial References. k. Telephone Numbers.
l. Financial Statements.
(...)"

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//5. Board Resolution No. 173/2017

Article 2.- Send a legalized copy of this Resolution to the UIF, through the General Management within the period provided in Article 61 of the Internal Regulation for the Prevention, Detection, Control and Report of ML, TF and/or PO with a Risk Management Approach.

Article 3.- The modification approved by this Resolution, shall enter into force from the day of its approval.

Article 4.- The Presidency and the General Management of the BCB are in charge of the execution and compliance of this Resolution.

La Paz, December 5, 2017

Luis Baudoin Olea
Renald Polo Rivero
Abraham Pérez Alandia
Sergio Velarde Vera
Gabriel Herbas Camacho