Circular 12/2017 — Modifications to Circular 3/2016

Friday, June 2, 2017 OFFICIAL GAZETTE (First Section) 126 BANCO DE MEXICO CIRCULAR 12/2017 addressed to participants in the SPID, regarding Modifications to Circular 3/2016 (Reforms to SPID).

A logo appears at the margin, stating: Banco de México.

CIRCULAR 12/2017 TO PARTICIPANTS IN THE SPID: 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 payment systems, has deemed it convenient to adjust the General Provisions Applicable to Credit Institutions that intend to participate in Payment Systems for Interbank Transfers of Funds in Dollars, in order to establish homogeneous treatment with respect to the requirements established for participants in the Interbank Payment System in Dollars (SPID) in terms of the Rules applicable to said Payment System issued by the Bank of Mexico through Circular 4/2016 and modified by the most recent resolution contained in Circular 10/2017.

For the above reason, 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, 14 Bis, first paragraph, in relation to 17, fraction I, 14 Bis 1, first paragraph, in relation to 25 Bis 1, fraction IV, and 20, fraction XI, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Directorate, General Directorate of Financial System Affairs and Directorate of Payment Systems, respectively; as well as Second, fractions I, VIII and X, of the Agreement on the Attachment of Administrative Units of the Bank of Mexico, it has resolved to modify provision 13a., fractions VI, XII Quater, as well as to add a fraction XII Sexies to 13a. of the “General provisions applicable to credit institutions that intend to participate in 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 PAYMENT SYSTEMS FOR INTERBANK TRANSFERS OF FUNDS IN DOLLARS

“13a. Obligations of Participants.- … I.a V. …

125 (First Section) OFFICIAL GAZETTE Friday, June 2, 2017

VI. Refrain from offering interbank electronic fund transfers through an electronic payment system that allows for the execution of such transfers in Dollars, whose internal rules are authorized by the Bank of Mexico, or which is administered by the Bank of Mexico in accordance with the Payment Systems Law, to legal entities that are not incorporated or do not have their domicile in national territory in the terms established by the Bank of Mexico;

VII. to XII.Ter. …

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, whose data have matched the general lists or particular resolutions indicated below, without the Participant itself having carried out the review and, if applicable, obtained the additional necessary information to verify that said client does not correspond to the person included in such lists or resolutions:

a) general lists or particular resolutions issued by competent authorities regarding persons with respect to which credit institutions in general are obliged by law to suspend their operations, or b) official lists regarding persons with respect to which financial institutions, national or foreign, are obliged by law to suspend their operations, issued by the competent authorities that the correspondent with which the Participant in question holds a deposit account in Dollars to operate in the SPID must observe;

XII. Quinquies. …

XII. Sexies. In the event that, as a result of the processing of Accepted Transfer Orders, alerts are generated in the automated systems available to the Participant in question for the purpose of detecting unusualness in the respective transfers or inconsistencies of these with the information known to said Participant regarding the issuing client and beneficiary client, as the case may be, give attention to said alerts with greater priority and speed than that established in their ordinary processes, in proportion to the additional risk that could derive from said transfers;

XIII to XVIII. …”

TRANSITORY SINGLE.- This Circular shall enter into force on the day of its publication in the Official Journal of the Federation.

Mexico City, May 31, 2017.- The General Legal Director, Luis Urrutia Corral.- Signature.- The General Director of Financial System Affairs, Jesús Alan Elizondo Flores.- Signature.- The Director of Payment Systems, Manuel Miguel Angel Díaz Díaz.- Signature.

Friday, June 2, 2017 OFFICIAL GAZETTE (First Section) 126 For any inquiries 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.