Circular 25/2008 — General Provisions for the Transfer of Salary and Other Labor-Related Benefits

Wednesday, June 11, 2008 OFFICIAL GAZETTE (First Section) 1 CIRCULAR 25/2008 regarding the general provisions for the transfer of salary and other labor-related benefits, in accordance with what is provided in Article 18 of the Law for Transparency and Orderly Regulation of Financial Services.

At the margin a logo that says: Bank of Mexico.

CIRCULAR 25/2008
TO CREDIT INSTITUTIONS:
SUBJECT: GENERAL PROVISIONS FOR THE TRANSFER OF SALARY AND OTHER LABOR-RELATED BENEFITS, IN ACCORDANCE WITH WHAT IS PROVIDED IN ARTICLE 18 OF THE LAW FOR TRANSPARENCY AND ORDERLY REGULATION OF FINANCIAL SERVICES.

The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 and 26 of the Bank of Mexico Law; 18 and 22 of the Law for Transparency and Orderly Regulation of Financial Services; 8th, third and sixth paragraphs, 10, as well as 14 in relation to 25 fraction II, 17 fraction I and 20 fraction IV of the Internal Regulations of the Bank of Mexico published in the Official Gazette of the Federation on September 30, 1994, whose last modification was published in said Official Gazette on May 9, 2008; as well as in the Single Article, fraction IV of the Agreement on the Attachment of Administrative Units of the Bank of Mexico; with the objective of promoting the proper functioning of payment systems and protecting the interests of the public, considering that:
a) On June 15, 2007, the "Decree by which the Law for Transparency and Orderly Regulation of Financial Services published in the Official Gazette of the Federation on January 26, 2004 is repealed, the Law for Transparency and Orderly Regulation of Financial Services is issued, and various provisions of the Credit Institutions Law and the Law for Protection and Defense of Users of Financial Services and the Law of the National Banking and Securities Commission are reformed, added, and repealed" was published in the Official Gazette of the Federation, and b) These reforms had, among other purposes, to strengthen the powers of this Central Institute to regulate the obligation that credit institutions have to transfer resources deposited in favor of their clients for the concept of salary and other labor-related benefits, to the credit institution that they choose, without charging them any penalty.

It has resolved to issue the following:
GENERAL PROVISIONS FOR THE TRANSFER OF SALARY AND OTHER LABOR-RELATED BENEFITS, IN ACCORDANCE WITH WHAT IS PROVIDED IN ARTICLE 18 OF THE LAW FOR TRANSPARENCY AND ORDERLY REGULATION OF FINANCIAL SERVICES.

1. DEFINITIONS
   For brevity, singular or plural, it will be understood by:

Wednesday, June 11, 2008 OFFICIAL GAZETTE (First Section) 2 CLABE: the standardized banking key used by credit institutions to identify bank deposit accounts of their account holders, for sending charge or credit instructions through payment systems. Client: the natural person who is the holder of an Ordering Account and a Receiving Account. Ordering Account: the bank deposit account at sight that a credit institution holds, in which a Client receives his salary and other labor-related benefits through the Payroll Service. Receiving Account: the bank deposit account at sight that a credit institution holds for the Client, to which his salary and other labor-related benefits will be transferred. Business Day: the days of the week, except Saturdays, Sundays, and those on which credit institutions are obliged to close their offices and branches, in terms of the general provisions issued for such effect by the National Banking and Securities Commission. Ordering Credit Institution: the credit institution that provides the Payroll Service and holds the Ordering Account. Receiving Credit Institution: the credit institution that holds the Receiving Account. Debit Card Number: the number that appears on the front of the debit card issued in favor of the holder of the Receiving Account. Payroll Service: the one provided by credit institutions to employers through which resources related to salaries and other labor-related benefits of their employees are deposited via electronic fund dispersion.

2. GENERAL PROVISIONS
   2.1 Clients may instruct the Ordering Credit Institution so that each time they receive their salary and other labor-related benefits in it, such resources are transferred to the Receiving Account.
   The transfer of resources must be made on the same Business Day on which they are available in the Ordering Account, so that on that same date they are credited in the Receiving Account.
   This without prejudice to the fact that, prior to the transfer, Ordering Credit Institutions may make charges in the Ordering Accounts: i) when so agreed with Clients to pay credits granted to them, or ii) in cases where Clients have authorized it through the direct debit service, for the recurring payment of goods and services.

2.2 The instruction referred to in the previous paragraph must contain at least the following requirements:
i) Client's Name;

Wednesday, June 11, 2008 OFFICIAL GAZETTE (First Section) 3 ii) Ordering Account Number; iii) Receiving Credit Institution, and iv) CLABE of the Receiving Account or Debit Card Number.
To this effect, the Ordering Credit Institution must provide to Clients who request it, a format containing the following text:
“Based on Article 18 of the Law for Transparency and Orderly Regulation of Financial Services, I hereby instruct that institution so that each time resources are deposited in my favor in account number ____________ (Ordering Account) for the concept of salary and labor-related benefits through the Payroll Service, these are transferred at no cost to my charge to the Receiving Account with CLABE number ________________ (eighteen digits) or to the Debit Card Number ___________________ (sixteen digits), which is held by _______________________ (Name of the credit institution). This being understood that such resources must be at my disposal on the same date they are available in the Ordering Account. This instruction will remain valid until the undersigned orders its cancellation.”

2.3 Clients may order the Ordering Credit Institution at any time to cancel the instruction to transfer their salary and other labor-related benefits to a Receiving Account.
The aforementioned cancellation will take effect no later than the third Business Day following that on which the Ordering Credit Institution receives it.

2.4 The instructions and cancellation orders referred to in these Provisions may be delivered in writing at any branch of the Ordering Credit Institution, during customer service hours. Ordering Credit Institutions must keep records that attest to the receipt and content of the received instructions and cancellation orders, and must deliver to the Client the corresponding acknowledgment number.

2.5 Credit institutions that hold Ordering Accounts must accompany the statements they send regarding such accounts in the months of October and April of each year, with a communication that includes the following legend:
“As the account holder, you have the right to instruct us in writing at any of our branches so that, at no cost to you, each time you receive resources in your account for the concept of salary and labor-related benefits, they are transferred to an account you hold at another credit institution. This being in accordance with what is provided in Article 18 of the Law for Transparency and Orderly Regulation of Financial Services and other applicable provisions.”

3. SENDING OF RESOURCES
   In order for Clients to identify fund transfers, the Ordering Credit Institution must send to the Receiving Credit Institution the data or information that the employer has assigned when making the deposit of the corresponding resources in the Ordering Account. Credit Institutions cannot charge Clients any amount for the sending and receipt of the transfer of resources referred to in these Provisions.

TRANSITORY PROVISION
UNIQUE.- These Provisions will enter into force on August 4, 2008.
Respectfully,
Mexico, D.F., June 9, 2008.- BANK OF MEXICO: The Director General of Financial System Analysis, José Gerardo Quijano León.- Signature.- The Director of Operational Systems and Payments, Ricardo Medina Alvarez.- Signature.- The Manager of Provisions to the Financial System, Eduardo Aurelio Gómez Alcázar.- Signature. For any consultation regarding the content of this Circular, please go to the Department of Authorizations, Consultations and Legal Control Control, located at Avenida 5 de Mayo number 2, sixth floor, Centro Neighborhood, Mexico City, D.F., C.P. 06059, or to the phones 5237.2308, 5237.3200 or 5237.2317.