Circular 10/2016 — Modifies Circular 3/2016 (SPID Reforms)

(First Section) OFFICIAL GAZETTE Thursday, November 3, 2016 BANCO DE MEXICO CIRCULAR 10/2016, addressed to Credit Institutions that offer money deposit accounts in foreign currency to legal entities with residence in national territory, regarding Modifications to Circular 3/2016 (Reforms to SPID).

At the margin a logo, which says: Bank of Mexico.
CIRCULAR 10/2016
TO THE CREDIT INSTITUTIONS THAT OFFER
MONEY DEPOSIT ACCOUNTS IN FOREIGN CURRENCY to LEGAL ENTITIES WITH RESIDENCE IN NATIONAL TERRITORY:
SUBJECT: MODIFICATIONS TO CIRCULAR
3/2016 (REFORMS TO SPID)

The Bank of Mexico, with the purpose of continuing to promote the sound development of the financial system and the proper functioning of the payment systems, has considered it convenient to make various adjustments to the General Provisions Applicable to Credit Institutions that intend to participate in the Payment Systems for Interbank Transfers of Funds in Dollars in order to reflect the modifications to the SPID Rules.

Therefore, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 2, 3, fraction I, 24, 31 and 35 Bis, of the Bank of Mexico Law, 10 and 19 of the Payment Systems Law, 22 of the Law for Transparency and Ordering of Financial Services, 4, first paragraph, 8, paragraphs fourth and seventh, 10, first paragraph, 17, fraction I, 20, fraction XI, and 25 Bis 1, fraction IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the Directorate of Central Banking Provisions, the Directorate of Payment Systems and the Directorate of Regulation and Supervision, respectively, as well as Second, fractions I, VIII and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, it has resolved to modify provision 2a., in the definition of “Credit Institutions”, “Transfer Order” and “SPID”, 13a. fractions II and VI, as well as to add fractions XII Bis., XII Ter., XXII Quater. and XXII Quinquies to the 13a., of the “General provisions applicable to credit institutions that intend to participate in the payment systems for interbank transfers of funds in dollars”, contained in Circular 3/2016, to remain in the following terms:

GENERAL PROVISIONS APPLICABLE TO CREDIT INSTITUTIONS THAT INTEND TO PARTICIPATE IN THE PAYMENT SYSTEMS FOR INTERBANK TRANSFERS OF FUNDS IN DOLLARS

2a. Definitions.-…
…
III. “Credit Institutions: to multiple banking and development banking institutions that, in terms of the Provisions, receive any or the following types of demand money deposits in accounts, with or without checkbooks,
opened in the name of legal entities that have their domicile in national territory: (i) those denominated in Dollars, and (ii) those denominated in pesos, national currency, with respect to which said institutions have chosen to offer to the respective account holders, according to the agreement they enter into for this purpose, the service of sending electronic fund transfers denominated in Dollars through the SPID in accordance with these Rules. …
VI. Transfer Order: to the unconditional instruction that a Participant issues in the name and on behalf of its Issuing Client that specifies in it or, in its case,
in the name and on its own behalf when there is no request from any Issuing Client, and sends it to another Participant, through the SPID, in terms of these Rules, so that the latter carries out the crediting that corresponds to a determined amount in Dollars in the

Thursday, November 3, 2016 OFFICIAL GAZETTE (First Section) account of the Beneficiary Client designated in said instruction. …
XII. SPID: the payment system named “Interbank Payment System in
Dollars” that allows the sending, processing and settlement of Transfer Orders interbank, in order to transfer, through electronic means, determined amounts in Dollars to accounts of demand deposits denominated in that currency, with or without checkbooks payable in the Mexican Republic, opened only in the name of legal entities that have their domicile in national territory. …” 13a. Obligations of Participants.- …
I. …
“II. At all times have at least one compliance officer for the SPID in charge of ensuring compliance with the applicable regulations to the SPID in matters of risks related to the use of the SPID in the commission of illicit activities and, a responsible person in charge of ensuring compliance with the rest of the applicable regulations to the SPID in matters that do not involve such risks.
III. to V. …
VI. Refrain from offering demand deposit accounts in Dollars with or without checkbooks
payable in the Mexican Republic to legal entities that do not have their domicile in national territory in the terms that the Bank of Mexico establishes;
VII. to XII. …
XII Bis. Refrain from sending Transfer Orders in its own name when the respective transfers are requested by third parties; XII Ter. Refrain from processing fund transfers to money deposit accounts denominated in Dollars opened in another Participant in the name of the legal entities beneficiaries of said transfers, through transfers in that same Participant of the resources coming from accounts opened in its own name in said Participant; XII Quater. Refrain from issuing Transfer Orders or accepting those Accepted Transfer Orders issued by the SPID referred to the issuing client or beneficiary client, as the case may be, that has sent or received any transfer previously through the SPID with respect to which any alert has been generated in the automated systems that the Participant itself has, in order to detect unusualness in said transfer or inconsistencies of these with the information that is known to the Participant, without the latter having carried out the review and, in its case, obtained the additional necessary information to verify the commission of illicit activities related to the use of the SPID; XII Quinquies. Refrain from making or receiving fund transfers from those clients or users with respect to which Participants have not complied with the requirements related to the use of the SPID in the commission of illicit activities, referred to the first paragraph of this Rule;
XIII. to XVIII. …”
TRANSITORY
SINGLE.- This Circular will enter into force on the Banking Business Day following its publication in the Official Gazette of the Federation. Mexico City, October 28, 2016.- The Director of Regulation and Supervision, Viviana Garza Salazar.- Signature.- The Director of Central Banking Provisions, Mario Ladislao Tamez López Negrete.- Signature.- The Director of Payment Systems, Miguel Ángel Díaz Díaz.- Signature.

(First Section) OFFICIAL GAZETTE Thursday, November 3, 2016 For any consultation regarding the content of this Circular, please contact the Department of Authorizations, Consultations and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000 Ext. 3200.-2000 Ext. 3200.