Regulatory Alerts2011-06-20 | Circular 15/2011Added
Circular 15/2011 — Modifies Circular 2019/95
The Bank of Mexico amends section M.12.7 of Circular 2019/95 to update regulations for foreign currency prepaid bank cards, allowing institutions to determine card physical characteristics, maximum balances, and commercial names while requiring clear display of expiration dates, issuer branding, and authorized user names on the card front. The amendment permits the use of CLABE or 16-digit card identification numbers for electronic fund transfers to these cards and prohibits their use for electronic fund transfers. These changes take effect on August 15, 2011, with cards activated prior to that date remaining valid until their expiration under the previous regime.
CIRCULAR 15/2011 Mexico, D.F., June 20, 2011. TO MULTIBANK INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95
The Bank of Mexico, in order to continue promoting the sound development of the financial system and taking into consideration the modifications made to the regulation applicable to passive operations in national currency through Circular 14/2011, has resolved to make modifications to the provisions applicable to foreign currency prepaid bank cards.
Therefore, based on Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Articles 24, 26, and 31 of the Bank of Mexico Law; Article 46, fraction XXVI bis of the Credit Institutions Law; Article 3, fraction XII, and Article 22 of the Law for Transparency and Ordering of Financial Services; as well as Article 4, first paragraph, Articles 8, fourth and seventh paragraphs, 10, first paragraph, 12 Bis in relation to Article 20, fraction XI, 14 Bis 1, first paragraph in relation to Article 25 Bis 1, fraction IV, as well as Article 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Strategy, Risks and Payment Systems, the General Directorate of Financial System Affairs, and the Central Banking Provisions Directorate, respectively; as well as Article 2 of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions III, IX, and XI, it has resolved to modify section M.12.7 of Circular 2019/95, to read as follows:
M.1 PASSIVE OPERATIONS M.12. CHARACTERISTICS OF OPERATIONS IN FOREIGN CURRENCY
“M.12.7 BANK CARDS
Institutions may issue bank cards in Foreign Currency, which shall be means of withdrawal and payment.
For the acquisition of these cards, it will not be necessary to sign a contract, and the provisions of the 19th of the “General Provisions referred to in Article 115 of the Credit Institutions Law” issued by the Secretariat of Finance and Public Credit must be complied with.
The resources assigned to such cards will constitute a liability of the institution itself.
Institutions may freely determine: a) the physical characteristics of the cards; b) their maximum balance; and c) their commercial name. Notwithstanding the foregoing, the expiration date, the denomination or any other expression, symbolism, emblem, or logo of the issuing institution, as well as the name of the natural person who may dispose of the resources assigned to said cards, must be clearly shown on the front of the cards.
Such cards may be used within the national territory, as well as abroad, provided that they are not used to make electronic fund transfers.
Additionally, the provisions contained in sections M.11.11.13.; M.11.11.14.; M.11.11.16., fraction II, third paragraph; fraction III, subsections a) subsections i) to iii) and b) first paragraph of this Circular shall apply to bank cards in Foreign Currency.
For the purpose of making deposits to bank cards in foreign currency through electronic fund transfers, the CLABE, if assigned by the institutions, or the 16-digit identification numbers of the corresponding card may be used.”
TRANSITIONAL PROVISIONS
FIRST. This Circular shall enter into force on August 15, 2011.
SECOND. Cards that have been activated before the date indicated in Transitional Provision First may be used until the expiration of their validity in accordance with the regime applicable at the time of their activation.