Circular 16/2014 — Modification of Circular 22/2010 Regarding ATM Commission Charges

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) 94

CIRCULAR 16/2014, addressed to Credit Institutions and Regulated Multiple-Object Societies, regarding the Modification to Circular 22/2010, concerning the charging of commissions related to agreements on automated teller machines.

At the margin a logo, which says: Bank of Mexico.

CIRCULAR 16/2014

TO CREDIT INSTITUTIONS AND REGULATED MULTIPLE-OBJECT SOCIETIES:

SUBJECT: MODIFICATION TO CIRCULAR 22/2010, WITH RESPECT TO THE CHARGING OF COMMISSIONS RELATED TO AGREEMENTS ON AUTOMATED TELLER MACHINES.

The Bank of Mexico, with the purpose of continuing the promotion of the sound development of the financial system and to foster the proper functioning of payment systems, considering the importance of maintaining competitive conditions and transparency in the charging of commissions by automated teller machine operating entities, in accordance with the reforms to Circular 3/2012 regarding agreements for the use of automated teller machine network infrastructures, has resolved to recognize in its Circular 22/2010 the circumstances regarding the charging of commissions related to such use, as provided for in the Law for Transparency and Ordering of Financial Services.

Therefore, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26 of the Bank of Mexico Law, 4, 4 Bis, 17 and 22 of the Law for Transparency and Ordering of Financial Services, 4, first paragraph, 8, paragraphs fourth and seventh, 10, first paragraph, 15, first paragraph, in relation to 20, fraction XI, 14 Bis 1, first paragraph, in relation to 25 Bis 1, fraction IV, and 25 Bis 2, fraction II, 14 Bis, first paragraph, in relation to 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 Payment Systems and Corporate Services, the General Directorate of Financial System Affairs, and the General Legal Directorate, respectively, as well as the Second of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions I, VIII and X, has resolved to modify the definition of "Issuer," "Financial Entity," "ATM Operator" in numeral 1, and numeral 7.2, as well as to add a fourth paragraph to numeral 7.1, of the "General Provisions Establishing Prohibitions and Limits on the Charging of Commissions" contained in Circular 22/2010, to read as follows:

GENERAL PROVISIONS ESTABLISHING PROHIBITIONS AND LIMITS ON THE CHARGING OF COMMISSIONS

1. DEFINITIONS

"... Issuer: Financial Entities that issue, as appropriate, debit, credit or prepaid bank cards, as well as those that allow their customers to perform, through automated teller machines, acts related to operations and services that they have contracted with them. Financial Entities: credit institutions and regulated multiple-object financial societies that maintain equity links with credit institutions. ... ATM Operator: the Financial Entity that allows its Clients or that allows both them and those of other Financial Entities to perform, through automated teller machines that are part of the infrastructure belonging to it, acts related to the operations and services contracted with said Financial Entities, as appropriate. ..."

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) 95

7. CHARGING OF COMMISSIONS FOR ATM OPERATIONS

"7.1 ... ... ... Only in the event that the ATM Operator has entered into the agreement referred to in Articles 84 and 85 of Circular 3/2012 of the Bank of Mexico, it may —with respect to acts related to the operations and services that clients of said Issuer perform through automated teller machines that are part of the infrastructure belonging to the said ATM Operator— exempt from charging Commissions or charge Commissions lower than those applicable to clients of other Issuers that are not part of said agreement."

"7.2 ATM Operators must display on their screens after the act to be performed is selected, and before the operation is authorized, one of the following legends, as appropriate:

"For this operation you will pay a commission of: ____ pesos, VAT included."

Or,

"No commission will be charged for this operation."

Additionally, in the event that the act consists of a cash withdrawal corresponding to a disbursement of a credit granted by the Issuer, one of the following legends must be displayed, as the case may be:

"For use of the credit line you will pay a commission of: ____ pesos, VAT included, to the Issuer of your card."

Or,

"For disbursement of the credit you will pay a commission of: ____ pesos, VAT included, to the institution granting the credit."

In all cases, the user must be given the opportunity to cancel the operation before performing it and at no cost.

Regarding Internal ATM Operations, only the legend corresponding to the Commission to be charged, whether for the use of the automated teller machine or for the disbursement of the credit, shall be displayed. The foregoing, in accordance with Articles 4 Bis and 17 of the Law for Transparency and Ordering of Financial Services."

TRANSITIONAL PROVISIONS

FIRST.- This Circular shall enter into force on the next banking day following its publication in the Official Gazette of the Federation.

SECOND.- With respect to those Financial Entities that, prior to the entry into force of this Circular, have obtained authorization from the Bank of Mexico to provide services through automated teller machine networks operated by the third party contemplated in such authorization, they may continue to operate, provided that they observe the principles contemplated in Article 17 of the Law for Transparency and Ordering of Financial Services.

THIRD.- ATM Operators must display on their screens the legends indicated in numeral 7.2 of this Circular, with respect to acts other than the use of credit or debit cards, starting from 180 days following the entry into force of this Circular.

Mexico, D.F., September 29, 2014.- The General Director of Payment Systems and Corporate Services, Lorenza Martínez Trigueros.- Signature.- The General Legal Director, Luis Urrutia Corral.- Signature.- The General Director of Financial System Affairs, Jesús Alan Elizondo Flores.- Signature.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) 96

For any inquiries regarding the content of this Circular, please contact the Department of Authorizations, Inquiries and Legal Control, at the phone numbers (55) 5237-2308, (55) 5237-2317 or (55) 5237- 2000, extension 3200.