Banco Central de Bolivia

Directorio

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BOARD RESOLUTION NO. 203/2016

SUBJECT: FINANCIAL ENTITIES MANAGEMENT - APPROVES THE REGULATION OF THE DEFERRED SETTLEMENT MODULE (MLD) OF THE INTEGRATED PAYMENT SETTLEMENT SYSTEM (LIP)

VIEWED:

• The Political Constitution of the State.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia.
• Law No. 393 of August 21, 2013, on Financial Services.
• Law No. 164 of August 8, 2011, General of Telecommunications, Information and Communication Technology.
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005 of October 21, 2005, and its modifications.
• The Legal Reserve Regulation approved by BCB Board Resolution No. 107/2016, of June 14, 2016.
• The Regulation of Payment Services, Electronic Payment Instruments, Compensation and Settlement approved by BCB Board Resolution No. 134/2015 of July 28, 2015, and its modifications.
• The Internal Regulation for the Prevention, Detection, Control and Reporting of Money Laundering, Terrorism Financing and/or Preceding Crimes with a Focus on Risk Management approved by Board Resolution No. 77/2015 of May 12, 2015.
• The Regulation of the Integrated Payment Settlement System approved by BCB Board Resolution No. 061/2014 of June 10, 2014, and its modifications.
• The Digital Signature Regulation for the Payment System approved with BCB Board Resolution No. 086/2004 of June 22, 2004, and its modifications.
• The Report of the Financial Entities Management BCB-GEF-SSPSF-DVSP-INF-2016-58 of September 26, 2016.

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The Report of the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2016-259 of October 5, 2016.

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 Law No. 1670 in its articles 1, 2 and 3 states that the object of the Central Bank of Bolivia is to ensure the stability of the internal purchasing power of the national currency, for whose compliance and within the framework of its administrative, technical, financial and specialized regulatory competence, it formulates policies of general application in monetary, exchange and payment system matters.

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, for whose compliance and within the framework of its administrative, technical, financial and specialized regulatory competence, it formulates policies of general application in monetary and payment system matters.

That Law No. 1670 in its articles 30 and 37 stipulates that financial intermediation entities and financial services, whose operation is authorized by the Superintendence of Banks and Financial Entities, currently the Financial System Supervisory Authority, are subject to the regulatory competence of the Central Bank of Bolivia regarding the administration of the payment system.

That Law No. 1670 in its article 54 item 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 between 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 regulation and supervise its compliance within the framework of the regulation issued by the Central Bank of Bolivia in the field of the payment system.

That Law No. 393 on Financial Services establishes in paragraph IV of article 124 that the Financial System Supervisory Authority and the Central Bank of Bolivia, according to their competencies, will issue regulation that establishes the procedure and security regulations for operations, as well as the minimum requirements that entities must meet to carry out activities of electronic banking, telephone banking and through mobile devices, regulatory norm mandatory compliance by financial entities that provide the service.

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That Law No. 164 provides in its Article 78 that they have legal and evidentiary validity: a) the act or legal transaction carried out by a natural or legal person in a digital document and approved by the parties through digital signature, celebrated by electronic means or other of greater technological advancement, b) the electronic data message, c) the digital signature.

That, the BCB Board of Directors in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulations of general application and internal rules, being empowered to issue norms and adopt general decisions that are necessary for the fulfillment of the functions, competencies and powers assigned by Law to the Issuing Entity, as established in articles 44 and 54 item o) of Law No. 1670 and articles 9, 11 and 24 of the BCB Statute.

That the Legal Reserve Regulation in articles 26 and 27, state that the resources invested by each participant in the RAL Fund will serve as guarantee for the liquidity credits they request from the Central Bank of Bolivia, indicates the conditions and defines that it will be the Open Market Operations Committee that will determine the interest rates that will be applied to liquidity credits guaranteed by the RAL Fund in the first and second tranche.

That the Regulation of the Integrated Payment Settlement System has the object of regulating the functioning and operability of the system and establishing the rights, obligations and responsibilities of its administrator, its participants and its query users.

That the Regulation for the Prevention, Detection and Control of Money Laundering establishes the guidelines that Financial Intermediation Entities and Auxiliary Financial Services Companies must comply with, to contribute to the Plurinational State of Bolivia in the prevention, detection and control of money laundering.

That the Report of the Financial Entities Management states that it is necessary to facilitate the approval of the Regulation of the Deferred Settlement Module as part of the tasks of the consolidation of the Integrated Payment Settlement System to contribute to the interconnection of national low-value electronic payments and increase financial inclusion in the country, allowing regulated financial entities in the country a regulatory framework that allows their operational and geographical integration.

That the Report of the Legal Affairs Management states that there is no legal impediment for the Board of Directors of the Central Bank of Bolivia to consider the approval of the draft Regulation of the Deferred Settlement Module of the Integrated Payment Settlement System and recommends its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

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Article 1.- Approve the Regulation of the Deferred Settlement Module-MLD of the Integrated Payment Settlement System-LIP in its VII Chapters, 47 Articles and 3 Transitional Provisions which form part of the present Resolution as an annex.

Article 2.- This Regulation will enter into force from its approval.

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

La Paz, October 18, 2016

Marcelo Zabalaga Estrada
Sergio Velarde Vera
Ronald Polo Rivero
Luis Baudoin Olea

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ANNEX

REGULATION OF THE DEFERRED SETTLEMENT MODULE-MLD OF THE INTEGRATED PAYMENT SETTLEMENT SYSTEM-LIP

CHAPTER I

GENERAL PROVISIONS

Article 1 (Object of the Regulation). The object of this Regulation is to regulate the functioning, operability, the compensation and settlement processes derived from the processing of Electronic Payment Orders-EPO in the Deferred Settlement Module-MLD of the Integrated Payment Settlement System-LIP as well as to establish the rights, obligations and responsibilities of its administrator and its participants.

Article 2 (Scope of application). The norms contained in this Regulation will apply to the Central Bank of Bolivia-BCB and to the participants of the Integrated Payment Settlement System-LIP.

Article 3 (General regulatory framework). Participants of the Deferred Settlement Module-MLD must comply with this Regulation, the Regulation of the Integrated Payment Settlement System-LIP approved by BCB Board Resolution No. 061/2014 of June 10, 2014 and its modifications, Digital Signature Regulation for the Payment System approved with BCB Board Resolution No. 086/2004 of June 22, 2004 and its modifications, Regulation of Payment Services, Electronic Payment Instruments, Compensation and Settlement approved by BCB Board Resolution No. 134/2015 of July 28, 2015 and its modifications and Operational and IT Guide of the Deferred Settlement Module-MLD.

Article 4 (Definitions). For the purposes of this Regulation, the following definitions are established:

a) End-Client Applications: They are computer developments in three versions: standard, lightweight and desktop that include internet banking features and standard functionalities that allow holders of accounts opened in participating entities: register beneficiary accounts, process Electronic Payment Orders-EPO, consult historical information of processed Electronic Payment Orders-EPO and their status, in addition to establishing and changing their access password.

b) Beneficiary: Natural or legal person who receives in their account the funds coming from an Electronic Payment Order-EPO.

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c) Clearing and Settlement Chamber: Complementary financial services company authorized by the Financial System Supervisory Authority-ASFI whose object is the automatic and centralized processing of the compensation and settlement of Electronic Payment Orders-EPO generated from Electronic Payment Instruments-EPI and other accessory activities.

d) Cycle: Continuous processing time period of Electronic Payment Orders-EPO that comprises the compensation and settlement of the Net Multilateral Positions-NMP of the participants. The cycle can have sessions.

e) Compensation: Process that comprises: the transmission, reconciliation and, where applicable, the confirmation of Electronic Payment Orders-EPO 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 Electronic Payment Order-EPO.

f) Associated account: It is the account through which the holder of an account opened in a participating entity originates or receives funds coming from an Electronic Payment Order-EPO, which can be a checking account, savings account, mobile wallet account and those that allow the use of credit and prepaid cards.

g) Settlement account: Account opened at the Central Bank of Bolivia-BCB by participants of the Integrated Payment Settlement System-LIP that allows processing Electronic Payment Orders-EPO through that system. Settlement accounts are considered:

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

h) Clearing chamber account: Account opened at the Central Bank of Bolivia-BCB by Clearing and Settlement Chambers, Payment Services Companies-PSC with the purpose of processing the settlement of the Net Multilateral Positions-NMP resulting from the compensation of Electronic Payment Instruments-EPI. This type of account cannot maintain balances at the end of the cycle.

i) Receiving account: Account belonging to the holder of the Electronic Payment Instrument-EPI that receives the funds resulting from an Electronic Payment Order-EPO.

j) Computer developments: Specialized computer programming for the issuance and/or administration of Electronic Payment Instruments-EPI and Electronic Payment Orders-EPO that must comply with the regulations and procedures established by the Financial System Supervisory Authority-ASFI and Central Bank of Bolivia-BCB.

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k) Payment Services Companies-PSC: They are complementary financial services companies authorized by the Financial System Supervisory Authority-ASFI that carry out the following payment services defined by the Central Bank of Bolivia-BCB: issuance, acquiring, administration of Electronic Payment Instruments-EPI, processing of Payment Orders-PO, buying and selling of foreign currency, sending and paying of international remittances, sending and receiving of internal drafts.

l) Originating Entity: Participant of the Deferred Settlement Module-MLD or of a Clearing and Settlement Chamber in which a holder through their associated account originates an Electronic Payment Order-EPO.

m) Receiving Entity: Participant of the Deferred Settlement Module-MLD or of a Clearing and Settlement Chamber in which through their associated account a holder is the beneficiary of an Electronic Payment Order-EPO.

n) Settlement Guarantees: They are mechanisms that allow ensuring the settlement of Electronic Payment Orders-EPO when a participant does not comply with its obligations. Clearing and Settlement Chambers and Payment Services Companies-PSC will define the guarantees to be used within the framework of what is established in this Regulation as well as their execution procedure.

o) Interconnection: Physical or virtual and logical connection of the computer developments of Financial Intermediation Entities-FIE, Payment Services Companies-PSC, brokerage agencies, investment fund management companies, pension fund management companies and Clearing and Settlement Chambers for the transmission of electronic information, among them Electronic Payment Orders-EPO.

p) Interoperable: Technical compatibility between the computer developments of Financial Intermediation Entities-FIE, Payment Services Companies-PSC, brokerage agencies, investment fund management companies, pension fund management companies and Clearing and Settlement Chambers for the processing of Electronic Payment Orders-EPO.

q) Electronic Payment Instrument-EPI: Electronic device or document that allows the holder to originate Electronic Payment Orders-EPO and/or make queries of associated accounts with the Instrument.

r) Net Multilateral Position Debtor Limit-NMPDB: Maximum debtor amount in each currency 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 Services Company-PSC and Deferred Settlement Module-MLD.

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s) Settlement: Debit or credit that aims to settle obligations derived from Electronic Payment Orders-EPO between two or more participants, according to the results of the compensation.

t) Deferred Net Settlement-LNS: Form of settlement where the settlement of obligations by Electronic Payment Orders-EPO between participants is carried out by the net balance of the obligations and at a later moment than that of the sending and processing of individual orders, that is, by cycles.

u) Payment Order-PO: Instruction or message by which an orderer requests the assignment and/or transfer of funds through the use of Payment Instruments-PI, in favor of a beneficiary, which, by way of example and not limitation, considers:

i. Electronic transfers between natural and/or legal persons, which includes payments in case of being benefited by the provision of a service, purchase-sale of goods and payment for the fulfillment of obligations (debts, taxes and others);

ii. Deposit or withdrawal of cash, loading and cashing of electronic money and the cashing of Electronic Payment Instruments-EPI in businesses (the cash comes from the business's own activities).

v) High-value Payment Orders-PO: They are Payment Orders-PO originated and received by participants of the Hybrid Settlement Module-HSM.

w) Low-value Payment Orders-PO: They are Payment Orders-PO originated and received by holders of accounts opened in the participating entities of the Deferred Settlement Module-MLD.

x) Electronic Payment Order-EPO: Instruction or message by which an orderer requests the transfer of funds in favor of a beneficiary using an electronic device or document through a computer system and communication networks.

y) Participant of the Deferred Settlement Module-MLD: It is a participating entity of the Hybrid Settlement Module-HSM of the Integrated Payment Settlement System-LIP that through an adherence contract to the Deferred Settlement Module-MLD can process Electronic Payment Orders-EPO.

z) Net Multilateral Position-NMP: It is the sum of the value of all Electronic Payment Orders-EPO in favor of a participant during a cycle, minus the sum of the value of all Electronic Payment Orders-EPO against it. If the result

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is positive, the participant is in a Net Multilateral Position Creditor-NMPC and if the result is negative, it is in a Net Multilateral Position Debtor-NMPD.

aa) Processing of Electronic Payment Orders-EPO: Sequence of actions that begin with the sending of the fund transfer request, its validation, acceptance and that conclude when the Electronic Payment Order-EPO is finalized, that is, once the funds are credited to the receiving account, at which moment the Electronic Payment Order-EPO is considered definitive and concluded from the operational and legal point of view.

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

cc) National payment system: With regard to this Regulation, the payment system is the set of norms, procedures, payment services, compensation and settlement, Electronic Payment Instruments-EPI and electronic payment channels that make possible the processing of Electronic Payment Orders-EPO originated by natural and/or legal persons constituted as holders in the Plurinational State of Bolivia.

dd) Holder: Natural or legal person that maintains a contractual relationship with the issuer for the use of its Electronic Payment Instrument-EPI.

CHAPTER II
OF THE INTEGRATED PAYMENT SETTLEMENT SYSTEM-LIP

Article 5 (Integrated Payment Settlement System-LIP). It is a computer development of the Central Bank of Bolivia-BCB composed of a set of interrelated modules that facilitates the interconnection of the national payment system.

Article 6 (Objectives of the Integrated Payment Settlement System-LIP). The objectives of the Integrated Payment Settlement System-LIP are the following:

I. Implement computer developments that facilitate the interconnection of the participants of the Integrated Payment Settlement System-LIP for the processing of Electronic Payment Orders-EPO.

II. Provide computer developments so that holders of accounts opened in the participating entities of the Integrated Payment Settlement System-LIP can interconnect and process Electronic Payment Orders-EPO in the national payment system.

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III. Implement computer developments that allow electronic negotiation for the purchase-sale of US dollars and offer the excess money of the participants in accounts at the Central Bank of Bolivia-BCB.

Article 7 (Functionalities and Structure of the Integrated Payment Settlement System-LIP). The Integrated Payment Settlement System-LIP has a modular structure for the processing of Electronic Payment Orders-EPO in real time and deferred time, compensation and settlement, electronic negotiation, credit disbursement, guarantee administration, information, reports, help desk and contingencies.

Article 8 (Modules of the Integrated Payment Settlement System-LIP). Each module of the Integrated Payment Settlement System-LIP corresponds to a development phase:

I. Phase 1 - Hybrid Settlement Module-HSM: It is the computer development that interconnects its participants for the processing of high-value Electronic Payment Orders-EPO in real time and deferred time, granting of liquidity credits and control of settlement guarantees. Regulated by the Regulation of the Integrated Payment Settlement System and its modifications.

II. Phase 2 - Deferred Settlement Module-MLD: It is the computer development that facilitates electronic fund transfers to natural or legal persons holding accounts opened in the participating entities of the Hybrid Settlement Module-HSM, for the processing of low-value Electronic Payment Orders-EPO with Deferred Net Settlement-LNS.

III. Phase 3 - Electronic Negotiation Module-MNE: This computer development allows participating entities of the Hybrid Settlement Module-HSM to negotiate electronically and online through a direct real-time connection the purchase-sale of US dollars and offer the excess money they could have in their accounts at the Central Bank of Bolivia-BCB.

CHAPTER III
OF THE DEFERRED SETTLEMENT MODULE-MLD

Article 9 (Deferred Settlement Module-MLD). Component of the Integrated Payment Settlement System-LIP developed and administered by the Central Bank of Bolivia-BCB whose main object is to promote the interconnection of the computer developments of the participants and provide holders of accounts opened in participating entities with mechanisms to process Electronic Payment Orders-EPO between accounts of the entire financial system, manages the compensation and settlement of these orders and provides additional applications.

Article 10 (Operations). The Deferred Settlement Module-MLD carries out the following operations:

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a) Transmits electronic messages from its participants and Clearing and Settlement Chambers.

b) Electronically signs messages received from participants and Clearing and Settlement Chambers.

c) Performs automatic multilateral netting of Electronic Payment Orders-EPO.

d) Manages the settlement of Net Multilateral Positions-NMP.

e) Registers and controls settlement guarantee mechanisms.

f) Manages the collection of commissions and fines from participants.

Article 11 (Applications).

I. The Deferred Settlement Module-DSM, additionally, has the following applications:

a) "Agent Interface" to facilitate integration through web services.

b) "End User" (internet banking) standard version.

c) "End User" (internet banking) desktop hardware version.

d) "End User" (internet banking) lightweight version.

e) "End User" (mobile banking) Android version for processing Electronic Payment Orders-EPO using mobile devices.

II. The end-user applications are computer developments that will allow holders of accounts opened in participating entities to: register beneficiary accounts, process Electronic Payment Orders-EPO, consult historical information on processed Electronic Payment Orders-EPO and their status, as well as set and change their access password.

III. The use of the aforementioned applications is optional; participants are responsible for their customization, extension of functionalities, updates, and maintenance.

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Article 12 (Messaging and Communication Standard). To guarantee the interconnection of the computer developments of the national payment system, the Central Bank of Bolivia-CBBo through a circular from its General Management will communicate the messaging and communication standard that will be used by participants of the Deferred Settlement Module-DSM and the Clearing and Settlement Chambers.

CHAPTER IV

OF THE ADMINISTRATION OF THE DEFERRED SETTLEMENT MODULE-DSM

Article 13 (Administrator). The Central Bank of Bolivia-CBBo is the Administrator of the Deferred Settlement Module-DSM through the Financial Entities Management.

Article 14 (Obligations of the Administrator). The Administrator of the Deferred Settlement Module-DSM has the following obligations:

a) Ensure the availability and operability of the Deferred Settlement Module-DSM during the hours in which the cycles are enabled for the processing of Electronic Payment Orders-EPO.

b) Transmit the received electronic documents.

c) Apply computer security procedures that minimize risks in the process of electronic documents through the Deferred Settlement Module-DSM.

d) Make online information of their transactions available to each participant.

e) Ensure correct and timely clearing and settlement of each participant up to the Net Multilateral Position Debtor Limit-NMPDL or the value of their settlement guarantee.

f) Electronically remit, within the deadlines established in the Operational and IT Guide of the Deferred Settlement Module-DSM, the information for fund provisioning that allows settlement to all its participants.

g) Execute the settlement of the Net Multilateral Positions-NMP of all participants.

h) Preserve the electronic documents of the Electronic Payment Orders-EPO with their corresponding digital signature, for a period of ten (10) years after the document is processed.
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i) Register in its system the value of the Net Multilateral Position Debtor Limit-NMPDL or of the settlement guarantee for each of its participants and by currency denomination.

j) Draft and keep updated an Operational and IT Guide of the Deferred Settlement Module-DSM.

k) Establish and apply contingency procedures.

l) Deliver the optional applications to participants who request them.

Article 15 (Approval, modification of the Operational and IT Guide of the Deferred Settlement Module-DSM). The General Management of the Central Bank of Bolivia-CBBo will approve the Operational and IT Guide of the Deferred Settlement Module-DSM and its modifications by Resolution, which will be brought to the knowledge of participants through an External Circular.

Article 16 (Contingency Authorization). The Administrator of the Deferred Settlement Module-DSM will authorize or reject the declaration of contingency of any participant. The contingency procedures will be established in the Operational and IT Guide of the Deferred Settlement Module-DSM.

Article 17 (Schedules). The Deferred Settlement Module-DSM will work in a continuous scheme for the processing of Electronic Payment Orders-EPO. The schedules of the settlement cycles will be established in the Operational and IT Guide of the Deferred Settlement Module-DSM.

I. In order to guarantee the interoperability of the computer developments of the participants, the daily settlement cycles will be synchronized between the Clearing and Settlement Chambers and the Deferred Settlement Module-DSM.

Article 18 (Tariffs). The tariffs for participants of the Deferred Settlement Module-DSM will form part of the "Table of commissions for services of the Central Bank of Bolivia-CBBo" approved annually by its Board of Directors. The collection procedure will be defined in the Operational and IT Guide of the Deferred Settlement Module-DSM. This charge will be debited with the defined periodicity from the settlement accounts of the participants.

I. Electronic Payment Orders-EPO sent or received from and by the Deferred Settlement Module-DSM to and from Clearing and Settlement Chambers will have no cost for the Deferred Settlement Module-DSM nor for the Clearing and Settlement Chambers.
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II. The participating entities of the Deferred Settlement Module-DSM will apply to the holders of the Electronic Payment Orders-EPO service the tariff scheme defined by the Central Bank of Bolivia-CBBo through a Board of Directors Resolution.

Article 19 (Fines). The Central Bank of Bolivia-CBBo will establish the fines applicable to the operation of the Deferred Settlement Module-DSM in the "Table of fines" approved by its Board of Directors. The collection procedure will be defined in the Operational and IT Guide of the Deferred Settlement Module-DSM. By way of example and not limitation, the following omissions will be subject to the collection of fines:

a) For Electronic Payment Orders-EPO not responded to by the receiving entity in the number of requests and time limit foreseen for the operation of the Deferred Settlement Module-DSM.

b) For Electronic Payment Orders-EPO that have exceeded the defined guarantee limit and have not entered the clearing and settlement of a cycle.

The collection for fines will be automatically debited from the participants' accounts in the Integrated Payment Settlement System-LIP at the end of the daily settlement cycles of the Deferred Settlement Module-DSM.

Article 20 (System Security).

I. To guarantee the security of the operations processed in the Deferred Settlement Module-DSM, electronic signature will be used as a security mechanism for transactions on self-signed digital certificates or from a public or private certification entity legally established in the country. The procedure for the exchange of digital certificates will be defined in the Operational and IT Guide of the Deferred Settlement Module-DSM.

II. For the processing of Electronic Payment Orders-EPO, participating entities must apply what is defined by the Central Bank of Bolivia-CBBo on Minimum Operational Security Requirements for Electronic Payment Instruments-EPI.

Article 21 (Limitation of Liability). The Central Bank of Bolivia-CBBo will not be responsible for the legality of the origin or final destination of the resources processed to effect fund transfers using the computer development of the Deferred Settlement Module-DSM.

Article 22 (Compliance with the regulations of the Financial Investigations Unit-FIU). Participating entities must comply with the "Know Your Customer" policy regarding the holder, as well as "Due Diligence" procedures and other provisions issued by the Financial Investigations Unit-FIU relative to the Prevention, Detection, Control, and Reporting of Money Laundering; must ```

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consider at minimum the identification data and all pertinent documentation related to customer knowledge.

CHAPTER V

OF THE PARTICIPANTS OF THE DEFERRED SETTLEMENT MODULE-DSM

Article 23 (Participants). The following entities may participate in the Deferred Settlement Module-DSM of the Integrated Payment Settlement System-LIP:

I. The General Treasury of the Nation-TGN and Central Bank of Bolivia-CBBo.

II. Financial Intermediation Entities-FIE, Mobile Payment Service Companies-MPSC, Brokerage Agencies, Investment Fund Management Companies, Pension Fund Administrators authorized by the Financial System Supervision Authority-ASFI or by the Pension and Insurance Supervision and Control Authority-APS as applicable, in this sense they must meet the following minimum requirements:

a) Be participants in the Hybrid Settlement Module-HSM of the Integrated Payment Settlement System-LIP.

b) Send a note to the General Management of the Central Bank of Bolivia-CBBo requesting to be participants in the Deferred Settlement Module-DSM and fully accepting compliance with the provisions of this Regulation.

c) Sign the participation contract of the Deferred Settlement Module-DSM.

Article 24 (Interconnection and Interoperability Requirements). Clearing and Settlement Chambers that process Electronic Payment Orders-EPO that are participants in the Integrated Payment Settlement System-LIP must interconnect and be interoperable with the Deferred Settlement Module-DSM.

I. Clearing and Settlement Chambers must equate their control procedure and rejection mechanism for Electronic Payment Orders-EPO that cannot enter the clearing and settlement process of a cycle for having exceeded the guarantee limit with that of the Deferred Settlement Module-DSM of the Integrated Payment Settlement System-LIP. This procedure will be described in the Operational and IT Guide of the Deferred Settlement Module-DSM.

II. Participants of the Integrated Payment Settlement System-LIP must interconnect their computer developments to a Clearing and Settlement Chamber of Electronic Payment Orders-EPO or to the Deferred Settlement Module-DSM to allow the processing of Electronic Payment Orders-EPO between accounts of holders of the financial system.
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III. Participants of the Integrated Payment Settlement System-LIP must make the necessary adjustments to their computer developments so that the processing of Electronic Payment Orders-EPO is carried out automatically.

Article 25 (Requirements to be enabled as a participant). The entity to be enabled as a participant of the Deferred Settlement Module-DSM must meet the technical requirements and enablement procedures defined in the Operational and IT Guide of the Deferred Settlement Module-DSM; these requirements will be verified by the Systems Management and the Financial Entities Management of the Central Bank of Bolivia-CBBo.

Article 26 (Adhesion Contract). Participants of the Hybrid Settlement Module-HSM of the Integrated Payment Settlement System-LIP through the subscription of an adhesion contract may be participants of the Deferred Settlement Module-DSM.

Article 27 (Enablement and suspension of participants). Through an External Circular of the General Management of the Central Bank of Bolivia-CBBo, the date from which a participant will be enabled or suspended to carry out operations through the Deferred Settlement Module-DSM will be communicated. The procedures and deadlines for suspension will be established in the Operational and IT Guide of the Deferred Settlement Module-DSM.

Article 28 (Grounds for suspension). Participants will be suspended from the Deferred Settlement Module-DSM who incur in one or more of the following grounds:

a) The valid digital certificate used for operation in the Deferred Settlement Module-DSM or in the Hybrid Settlement Module-HSM is suspended.

b) The participant is suspended in the Hybrid Settlement Module-HSM.

c) Failure to pay a liquidity credit for the settlement of Net Multilateral Position Debtor-NMPD.

Article 29 (Obligations of participants). Participants of the Deferred Settlement Module-DSM have the following obligations:

a) Comply with the provisions contained in this Regulation.

b) Set their Net Multilateral Position Debtor Limit-NMPDL or the amount by currency denomination of their guarantee for settlement and communicate it to the Central Bank of Bolivia-CBBo.
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c) Monitor their Net Multilateral Position-NMP and limit of value of their guarantee.

d) Act promptly to maintain the necessary guarantee for the processing of their Electronic Payment Orders-EPO.

e) Guarantee the availability and operational continuity of their computer developments during the operating hours of the Deferred Settlement Module-DSM established in the Operational and IT Guide.

f) Assume the risks derived from the clearing and settlement of their operations.

g) Take the necessary actions to ensure continuous connection with the computer developments of the Deferred Settlement Module-DSM and its participants.

h) Respond to Electronic Payment Orders-EPO received in a settlement cycle within the time period established in the Operational and IT Guide of the Deferred Settlement Module-DSM.

i) Respond to requests from participants during the hours of the different operational cycles of the Deferred Settlement Module-DSM.

j) Take the necessary actions to ensure that Electronic Payment Orders-EPO that are pending due to having exceeded the established guarantee limit enter the clearing of the current cycle and are settled.

k) Credit the amounts corresponding to the holders' accounts, once the Electronic Payment Orders-EPO meet all validations required by the Deferred Settlement Module-DSM and therefore can be cleared and settled.

l) Safeguard the source code of the optional applications provided by the Central Bank of Bolivia-CBBo and use them only for the purposes described in this Regulation and in the Operational and IT Guide of the Deferred Settlement Module-DSM.

m) Respond to holder claims regarding controversies arising from the processing of Electronic Payment Orders-EPO through the Deferred Settlement Module-DSM.

n) Pay the tariff of the Deferred Settlement Module-DSM established in the "Table of commissions for services of the Central Bank of Bolivia-CBBo" approved annually by its Board of Directors.
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Article 30 (Rights of participants). Participants of the Deferred Settlement Module-DSM have the following rights:

a) Access the functionalities of the Deferred Settlement Module-DSM on equal conditions.

b) Obtain information about their operations in the manner established in this Regulation and the Operational and IT Guide of the Deferred Settlement Module-DSM.

c) Be informed about any changes in the rules governing the operation of the Deferred Settlement Module-DSM.

d) Receive at the close of each cycle, the total payment of their Net Multilateral Position Creditor-NMPC.

Article 31 (Rejection of Electronic Payment Orders-EPO). Participants may not reject processing requests for Electronic Payment Orders-EPO that they receive for grounds other than those defined in the Operational and IT Guide of the Deferred Settlement Module-DSM.

Article 32 (Resolution of disputes). Disputes arising between the Central Bank of Bolivia-CBBo and participants of the Deferred Settlement Module-DSM will be resolved through the fiscal coercive route.

Article 33 (Liability for economic losses). Participants of the Deferred Settlement Module-DSM will be responsible for economic losses caused by non-compliance with the norms contained in the general regulatory framework, the Operational and IT Guide of the Deferred Settlement Module-DSM, and any other related regulation.

Article 34 (Liability for Electronic Payment Orders-EPO). Participants will assume responsibility for their Electronic Payment Orders-EPO sent and will use mechanisms that guarantee the continuous and reliable operation of their computer developments.

I. The Central Bank of Bolivia-CBBo, as administrator of the Deferred Settlement Module-DSM, will not be responsible for errors, omissions, internal technical failures, or others related to the processing of Electronic Payment Orders-EPO carried out by participants.

II. Participants are responsible for the connections they make to their own and third-party computer developments, equipment, or networks at their own risk.
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Central Bank of Bolivia
Board of Directors

//19. R.D. N° 203/2016

III. The Central Bank of Bolivia-CBBo will not be responsible for interruptions in communications or in the functioning of the services provided by the Deferred Settlement Module-DSM when these are due to strikes, social disturbances, war, terrorism, catastrophic natural phenomena, or any other circumstance arising from force majeure and/or fortuitous event.

IV. Liability for service interruption affecting the processing of data or communications of the Deferred Settlement Module-DSM that are under control, ownership, or responsibility of the Central Bank of Bolivia-CBBo will be limited to the transmission of Electronic Payment Orders-EPO whose execution had been interrupted or affected and will not cover lost profits, unperceived interest, fines, or any type of sanction or indemnity arising from the delay in the fulfillment of the Electronic Payment Order-EPO.

Article 35 (Liability for the use of optional applications provided by the Central Bank of Bolivia-CBBo).

I. Participants will assume total responsibility for the use of the optional applications provided by the Central Bank of Bolivia-CBBo for the processing of Electronic Payment Orders-EPO.

II. Participants have the responsibility to safeguard the source code of the applications and use the applications only for the purposes described in this Regulation and in the Operational and IT Guide of the Deferred Settlement Module-DSM.

III. Participants may not commercialize the applications provided by the Central Bank of Bolivia-CBBo.

IV. The Central Bank of Bolivia-CBBo, as administrator of the Deferred Settlement Module-DSM, will not be responsible for errors, omissions, internal technical failures, or other nature in the use of the applications for the processing of Electronic Payment Orders-EPO. Liability for adjustments, customizations, extension of functionalities, and maintenance of the applications that are made on the initial functionalities remains at the risk of the participants of the Deferred Settlement Module-DSM even when these have been recommended, required, or approved by the Central Bank of Bolivia-CBBo.

CHAPTER VI
OF THE CLEARING AND SETTLEMENT IN THE DEFERRED SETTLEMENT MODULE-DSM
SECTION I
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Central Bank of Bolivia
Board of Directors

//20. R.D. N° 203/2016

CLEARING

Article 36 (Clearing Guidelines). Clearing will be carried out in compliance with the following guidelines:

1. In a consolidated manner at the national level and by currency denomination.

2. Under the multilateral netting modality.

3. Applying and controlling the guarantee mechanisms for settlement.

4. Clearing and Settlement Chambers that integrate with the Deferred Settlement Module-DSM will consolidate a single Net Multilateral Position-NMP corresponding to all Electronic Payment Orders-EPO sent and received by their participants during the operation cycle.

5. Applying the rejection mechanism for Electronic Payment Orders-EPO that have not entered the clearing process for: a) having exceeded the value of their settlement guarantee; b) not having responded to validation requests within the time limit and number of attempts defined in the Operational and IT Guide of the Deferred Settlement Module-DSM.

SECTION II
NET MULTILATERAL POSITION DEBTOR LIMIT

Article 37 (Net Multilateral Position Debtor Limit-NMPDL).

I. The Net Multilateral Position Debtor Limit-NMPDL is the maximum debtor amount that a participant can have during the cycle to ensure the settlement of their Net Multilateral Position Debtor-NMPD at the end of the same.

II. The maximum debtor amount will correspond to a percentage determined by each participant according to the settlement guarantee they use in the Deferred Settlement Module-DSM.

III. In the case of using the Liquid Asset Requirement Fund-LARF as a settlement guarantee, the limit for each participant must not exceed the equivalent of 95% of the total amount that at the time of calculation is deposited in the Liquid Asset Requirement Fund-LARF account of the participant by currency denomination.

Article 38 (Expansion and reduction of the Net Multilateral Position Debtor Limit-NMPDL).

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