Board Resolution No. 216/2012

BOARD RESOLUTION NO. 216/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT — REGULATION FOR THE SALE OF US DOLLARS THROUGH BCB COUNTERS AND/OR STATE-MAJORITY FINANCIAL INTERMEDIATION ENTITIES.

HAVING 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).
Law No. 291 of September 22, 2012, on Modifications to the General State Budget (PGE-2012).
Supreme Decree No. 1423 of December 5, 2012, which regulates the sale of US dollars through the BCB and/or state-majority financial intermediation entities.
The BCB Board Resolution No. 031/2009 of March 31, 2009 on the Foreign Exchange Operations Regulation, modified by B.D. No. 153/2012 of August 22, 2012.
The letter from the Ministry of Economy and Public Finances MEFP/NTPI/TU/DTGN/N° 378/2012 of December 5, 2012.
Presidential Decision No. 003/2012 of December 12, 2012.
The Report from the Monetary Operations Management BCB-GOM-INF-2012-13 of December 17, 2012.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-399 of December 14, 2012.

CONSIDERING:
That Law No. 291 in its article 90 establishes the creation throughout the national territory of the Tax on the Sale of Foreign Currency (IVME), with a transitional period of thirty-six (36) months, with banking and non-banking financial entities and exchange houses as passive subjects. It also establishes that the Central Bank of Bolivia is exempt from the payment of this tax.

That Law No. 291 in its article 100 establishes that, in order to guarantee the liquidity of US dollars demanded by the national economy, the BCB must sell US dollars to the general public, through its own counters and/or through financial intermediation entities.

That Supreme Decree 1423 in its article 12 establishes that the BCB must sell US dollars to the general public, through its own counters and/or through financial intermediation entities with state majority participation and that for this purpose, the Monetary Authority will issue a specific regulatory norm.

That the BCB Board Resolution No. 031/2009 of the Foreign Exchange Operations Regulation, modified by B.D. No. 153/2012, in its article 21 determines that entities supervised by the Financial System Authority and exchange houses will sell US dollars to their clients and users at an exchange rate no greater than one (1) cent of Boliviano from the official BCB sale exchange rate in effect on the date of each operation.

That the Ministry of Economy and Public Finances through note MEFP/NTPI/TU/DTGN/N° 378/2012 requests the BCB to issue the respective specific norm in order to comply with Supreme Decree No. 1423, within the scope of its competencies, considering that the Tax on the Sale of Foreign Currency enters into force the day after the publication of said Supreme Decree.

That for the purposes indicated in the preceding considerations, the BCB must issue a specific regulatory norm.

That by Presidential Decision 003/2012, the Regulation for the Sale of US Dollars through BCB counters and/or State-Majority Financial Intermediation Entities was approved temporarily, starting Thursday, December 13, 2012.

That the Monetary Operations Management, through Report BCB-GOM-INF-2012-13, recommends approving the Regulation for the sale of US dollars through the counters of the Central Bank of Bolivia (BCB) and/or financial intermediation entities with state majority participation.

That the Legal Affairs Management through Report BCB-GAL-SANO-INF-2012-399 concludes that there is no legal impediment for the Board to approve a Regulation for a banking entity with state majority participation since it falls within the framework of the Sale of US Dollars in BCB Treasury Counters and the legal order.

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

Article 1.- Approve the Regulation for the Sale of Dollars through BCB counters and/or state-majority financial intermediation entities, which, in the Annex, forms part of this Board Resolution, which will enter into force on the day of its approval.

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

La Paz, December 18, 2012

Marco Zaleta
Gustavo Blackett Alcala
Aldana
Hugo Dorado Aranthar

ANNEX
REGULATION FOR THE SALE OF US DOLLARS THROUGH BCB COUNTERS AND/OR STATE-MAJORITY FINANCIAL INTERMEDIATION ENTITIES

CHAPTER I
GENERAL PROVISIONS

Article 1. (Background). This Regulation is issued within the framework of the additional ninth and tenth provisions of Law No. 291 of September 22, 2012, through which the Tax on the Sale of Foreign Currency (IVME) is created and it is established that the Central Bank of Bolivia (hereinafter: BCB), to guarantee the liquidity of US dollars demanded by the national economy, must sell US dollars to the general public through its own counters and/or through financial intermediation entities with state majority participation (hereinafter: Entity); as well as by what is provided in article 12 of Supreme Decree No. 1423 of December 5, 2012, which establishes that the Monetary Authority will issue a specific regulatory norm for this effect.

Article 2. (Object). This Regulation aims to regulate the procedure applicable to the sale of US dollars through BCB counters and/or through the Entity.

Article 3. (Scope of application). The provisions contained in this Regulation extend to the sale operations of US dollars through BCB counters and/or through Entity entities.

Article 4. (Exemption from IVME). The sale of US dollars carried out by the BCB through its own counters and/or the Entity is exempt from the payment of the IVME as established in the Additional Ninth Provision of Law No. 291.

CHAPTER II
PROCEDURE FOR THE SALE OF US DOLLARS THROUGH BCB COUNTERS

Article 5. (Sales operations). The sales operations of US dollars framed in Law No. 291 and Supreme Decree No. 1423, will be processed through the customer service counters, in the cash area of the BCB.

Article 6. (Applicable exchange rate). Any sale of US dollars carried out by the BCB through its own counters, will be carried out at the official sale exchange rate in effect on the date of each operation.

Article 7. (Information Registration). For each sale operation of US dollars, the buyer must present their Identity Document and a photocopy. The cashier will register the following information:

For Natural Persons

• Names and surnames
• Date of birth
• Nationality
• Number and place of issuance of the Identity Document (Identity Card, RUN or Passport)
• Marital Status
• Home address
• Profession
• Economic activity or main occupation
• Office/home/mobile phones
• Origin of Funds*
• Purpose of the Transaction*

When the buyer acts on behalf of a legal entity, they must present a Specific, Broad, and Sufficient Power of Attorney granted by said entity. Additionally, the cashier will register the following information:

For Legal Entities

• Trade name
• Main activity
• Tax Identification Number
• Address of the main office and branches
• Phones
• Origin of Funds*
• Purpose of the Transaction*

The information marked with an asterisk will be filled in for sales equal to or greater than $US 3,000 (Three Thousand 00/100 US Dollars) or in cases where the BCB Risk Management determines.

Article 8. (Delivery and Receipt of Currency). The cashier will receive in national currency the amount equivalent to the quantity of dollars required and will deliver to the interested party the quantity of US dollars required, at the official sale exchange rate.

Article 9. (Treasury Receipt). As proof of the transaction carried out, the teller will deliver to the interested party the respective Treasury Receipt duly signed.

Article 10. (Procedures applicable to the Sale of US Dollars). The Monetary Operations Management will prepare the respective Internal Procedure Manuals for their approval by General Management.

CHAPTER III
SALE OF US DOLLARS THROUGH STATE-MAJORITY FINANCIAL INTERMEDIATION ENTITIES

Article 11. (Applicable Exchange Rate). The sale of US dollars to be carried out through the Entity will be carried out at an exchange rate no greater than one (1) cent of Boliviano from the official BCB sale exchange rate in effect on the date of each operation.

Article 12. (Operational Conditions). The operational conditions inherent to the service to be provided by the Entity for the sale of US dollars, will be established in an Operational Manual prepared by the Monetary Operations Management which will form an integral part of the contract to be signed.

CHAPTER IV
SUBMISSION OF INFORMATION TO THE UIF

Article 13. (Information to the Financial Investigation Unit). The BCB and the Entity will submit to the UIF the information on the sale operations of US dollars that have been carried out, within the framework of what is required by said Institution.