Circular 16/2017 — Modifications to Circular 3/2012 (Dollar Transfers)

72 (First Section) OFFICIAL GAZETTE Tuesday, August 1, 2017

CIRCULAR 16/2017 addressed to Credit Institutions and the National Agricultural, Rural, Forestry and Fisheries Development Financial Institution, regarding Modifications to Circular 3/2012 (Dollar Transfers).

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

CIRCULAR 16/2017

TO CREDIT INSTITUTIONS AND THE NATIONAL AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT FINANCIAL INSTITUTION:

SUBJECT: MODIFICATIONS TO CIRCULAR 3/2012 (DOLLAR TRANSFERS)

The Bank of Mexico, with the purpose of continuing to promote the proper functioning of payment systems and the sound development of the financial system, has determined to clarify the obligation that institutions allowing their corporate client customers to make dollar fund transfers directed to accounts denominated in that same currency in the name of corporations constituted and domiciled in national territory may only be carried out through an electronic payment system that allows the execution of such dollar transfers, 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. Additionally, with the objective of improving liquidity administration in the Dollar Interbank Payment System (SPID), the Bank of Mexico has decided to extend the schedule during which participants can deposit or withdraw resources from their accounts in the SIAC-BANXICO for system operation.

For the foregoing, based on Articles 28, sixth and seventh paragraphs, of the Political Constitution of the United Mexican States, 24 and 31, of the Bank of Mexico Law, 22 of the Law for Transparency and Regulation of Financial Services, 4, first paragraph, 8, fourth and seventh paragraphs, 10, first paragraph, 15, first paragraph in relation to 20, fraction XI, 17, fraction I, 19 Bis 1, 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 General Directorate of Payment Systems and Corporate Services, the Directorate of Central Bank Provisions, the Directorate of Operational Support, and the Directorate of Regulation and Supervision, respectively, as well as Article Two, fractions I, VI, VIII and X, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, it has resolved to modify Articles 48 Bis, first paragraph, 126, first paragraph, fraction II, 129, first paragraph, and 129 Bis, first paragraph, fraction I, second paragraph, and last paragraph, of the "Provisions applicable to the operations of credit institutions and the National Agricultural, Rural, Forestry and Fisheries Development Financial Institution," contained in Circular 3/2012, to read as follows:

PROVISIONS APPLICABLE TO THE OPERATIONS OF CREDIT INSTITUTIONS AND THE NATIONAL AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT FINANCIAL INSTITUTION

"Additional Characteristics of Dollar Demand Deposits with or without Checkbooks

Article 48 Bis.- Regarding Dollar Demand Deposits, with or without checkbooks, payable in the Mexican Republic, that Institutions maintain through Accounts opened in the name of corporations constituted in accordance with the laws of the United Mexican States, which, furthermore, in terms of what is provided in Article 46, fraction I, subsection b), of these Provisions, have their domicile in national territory, such Institutions must carry out all electronic fund transfers denominated in Dollars originating from such Accounts, for credit to that same type of Account in another Institution opened in the name of a corporation with those characteristics, exclusively through an electronic payment system that allows the execution of that type of dollar transfers, 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. Likewise, the Institution that maintains Accounts referred to in this article, opened in the name of the aforementioned corporations, may only accept, for credit to such Accounts, those electronic fund transfers denominated in Dollars originating from Accounts in national currency or Foreign Currencies in other Institutions opened in the name of corporations with the same characteristics, when such transfers are processed through any of the payment systems mentioned.

..."

"Receipt of Dollars

Article 126.- ... I. ... II. Regarding the Dollar Account for SPID Funding, from 07:45:00 to 15:10:00 hours. ... ..."

"Transfers

Article 129.- Institutions may request from the Bank of Mexico, through the SIAC-BANXICO: (i) during the schedule from 08:00:00 to 14:30:00 hours corresponding to all International Banking Business Days, the sending of same-day value Dollars, to correspondents they have abroad, or (ii) during the schedule from 08:00:00 to 15:10:00 hours corresponding to all International Banking Business Days, the sending of same-day value Dollars, to correspondents that, for exclusive purposes of their operation with the SPID, they have in the United States of America, through the charge to their Dollar Account or their Dollar Account for SPID Funding as applicable. ... ... ..."

"Transfers between SIAC-BANXICO and SPID

Article 129 Bis.- ... I. ... Additionally, each International Banking Business Day at 17:15:00 hours, the Bank of Mexico will credit to the Institution's Dollar Account for SPID Funding the total balance of its SPID Account, and II. ... Institutions may request the transfer orders referred to in this article exclusively between 08:00:00 and 14:54:59 hours of each International Banking Business Day, and transfers resulting from such orders will have same-day value date."

TRANSITORY PROVISIONS

FIRST.- The provisions of Articles 126, first paragraph, fraction II, 129, first paragraph, and 129 Bis, first paragraph, fraction I, second paragraph, and last paragraph, shall enter into force on August 11, 2017.

SECOND.- The provisions of Article 48 Bis, first paragraph, shall enter into force on February 1, 2018.

Mexico City, July 28, 2017.- The General Director of Payment Systems and Corporate Services, Lorenza Martínez Trigueros.- Initials.- The Director of Central Bank Provisions, Mario Ladislao Tamez López Negrete.- Initials.- The Director of Regulation and Supervision, Viviana Garza Salazar.- Initials.- The Director of Operational Support, Joaquín Rodrigo Cano Jáuregui Segura Millán.- Initials.

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