Circular 16/2022 — Modifications to Circular 1/2022 (Transitional Rules)

Tuesday, December 13, 2022 OFFICIAL GAZETTE 1 BANK OF MEXICO CIRCULAR 16/2022 addressed to the participants of the Interbank Electronic Payment System and other interested parties acting with such status, regarding the Modifications to Circular 1/2022 (Transitional Rules).

A logo appears at the margin, stating: Bank of Mexico. - “2022, Year of Ricardo Flores Magón”.

CIRCULAR 16/2022 TO THE PARTICIPANTS OF THE INTERBANK ELECTRONIC PAYMENT SYSTEM AND OTHER INTERESTED PARTIES ACTING WITH SUCH STATUS:

SUBJECT: MODIFICATIONS TO CIRCULAR 1/2022 (TRANSITIONAL RULES)

The Bank of Mexico, with the purpose of continuing to promote the proper functioning of payment systems, as well as promoting the healthy development of the financial system and the protection of public interests, with the commitment to continue providing the population with digital payment services in a secure and efficient environment for innovation, has resolved to modify Circular 1/2022, in order to defer the effective dates provided in the Transitional Rules of Circular 1/2022 regarding the provision of indirect participation services in the Interbank Electronic Payment System (SPEI), the sending of fund transfers identifying the beneficiary solely by the ten digits of the account holder's mobile phone number, and the strengthening of remittance processing.

For the above reason, based on articles 28, sixth and seventh paragraphs, of the Political Constitution of the United Mexican States, 2, sections I, IV and VIII, and 6 of the Payment Systems Law, 22 of the Law for Transparency and Ordering of Financial Services, 4, first paragraph, 8, fourth and eighth paragraphs, 10, first paragraph, 14 Bis, first paragraph, in relation to 17, section I, and 20 Quáter, section IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Directorate and the Directorate of Policy and Studies of Payment Systems and Market Infrastructures, respectively, as well as Second, sections X and XVII, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to modify the transitional provisions FOURTH, second paragraph, SIXTH, SEVENTH, NINTH, FIFTEENTH, first paragraph, SIXTEENTH, SEVENTEENTH, NINETEENTH, TWENTIETH, first and second paragraphs, TWENTY-FIRST, first and second paragraphs, TWENTY-SECOND and TWENTY-THIRD; add the third paragraph to the FOURTH, the third and fourth paragraphs to the TWENTY-SECOND and TWENTY-FIFTH, as well as repeal the first paragraph of the FOURTH, of Circular 1/2022, published in the Official Gazette of the Federation on March 23, 2022, to remain in the following terms:

“TRANSITIONAL … FOURTH.- Repealed.

With respect to Participants who, upon the entry into force of this Circular, materially provide their Clients with services materially equivalent to the Indirect Participation Services provided for in the applicable Rules of this Circular, they shall have until June 19, 2023, to assign the CLABE sets under the same terms established in the third, fourth and fifth paragraphs of the 9th of the SPEI Rules included in this Circular, to those Clients to whom they provide such equivalent services, which shall include the digits that will identify, in each of said CLABEs, each of those Clients, as well as require them to, in turn, assign each of those CLABEs to accounts substantially similar to the Indirect Client Accounts provided for in the 2nd, section XXI Bis, of the Rules included in this Circular, that said Clients open to their respective clientele from the aforementioned entry into force date of this Circular.

As an exception to what is provided in the preceding paragraph, Participants who fall under the circumstance of said paragraph shall not be obligated to assign CLABE sets under the terms of said paragraph to those Clients who, no later than June 18, 2023, have presented to the Administrator their application for admission to SPEI as a Participant, in accordance with the 57th of the SPEI Rules. In the event that said Clients, within a maximum period of one hundred eighty natural days from when they presented their respective admission application, do not obtain the Administrator’s determination to admit them as SPEI Participants, in terms of what is established in the 64th of the Rules, the respective Participants shall assign the CLABE sets, in accordance with the third, fourth and fifth paragraphs of the 9th of the SPEI Rules included in this Circular, within a period no greater than one hundred eighty additional natural days counted from the expiration of the previous period.”

“SIXTH.- The additions to the 9th, seventh paragraph, as well as sections I and II, and to the 9th Bis., section IV, subsection a), second paragraph, of the Rules provided for in this Circular, shall enter into force on February 23, 2023.

Without prejudice to the foregoing, from the entry into force of this Circular until February 22, 2023, Participants may obtain the consent referred to in the 9th Bis., section IV, subsection a), second paragraph, of the Rules provided for in this Circular, from those Clients who, prior to the entry into force of the additions mentioned in the preceding paragraph, have enabled the software programs for the generation and processing of Collection Messages or CoDi Transfer Orders, in accordance with what is provided in said Rule 9th Bis., section IV, subsection a), second paragraph. In this case, the aforementioned Participants shall present to the Administrator, no later than February 23, 2023, the information indicated in the 9th, seventh paragraph, of the SPEI Rules provided for in this Circular, in accordance with what is provided in that same Rule.”

“SEVENTH.- The modifications to the 2nd, section XXXIV, 9th Bis., section IV, first paragraph of subsection b), and section V, subsection a), 19th, second paragraph of section I and subsection b) of section IV, 25th, section VI, 46th, subsection e) of section III, and 71st, section IV, of the Rules provided for in this Circular, shall enter into force on May 25, 2023.”

“NINTH.- The modifications to the 7th Bis., sections I, third and fourth paragraphs, II, III, IV, V, VI and XI, 9th Bis., fourth paragraph of section II, first paragraph of section III, subsections c), d) and e) of section IV, 10th, section I, 16th, first paragraph, as well as sections I and II, 20th, first and fifth paragraphs, 23rd, first paragraph, as well as sections II, IV, VIII and IX, 27th, section II and last paragraph, 43rd, first paragraphs, as well as subsection a) of section II, 46th, eleventh paragraph resulting from the addition of the respective paragraphs to said Rule, as indicated below, 51st Bis., first paragraph, 59th Bis., section I, 73rd, section II, and 86th, first and second paragraphs and section II, as well as the additions of the 6th, last paragraph, 7th Bis., second and fifth paragraphs of section I, 7th Ter., 9th, third, fourth and fifth paragraphs, 9th Bis., second, third and fifth paragraphs of section II, section II Bis, second paragraph of subsection a) and last paragraph of section III, third paragraph of subsection a), second paragraph of subsection b) and second paragraph of subsection e) of section IV, subsection a Bis) with its numerals 1 and 2, last paragraph of subsection d), second paragraph of subsection e), second paragraph of subsection f), second and fourth paragraphs of subsection g), second paragraph of subsection h), and second paragraph of subsection i), last paragraph of section V, as well as the third, fourth, fifth and sixth paragraphs of said Rule, Section I Bis 1 (Obligations corresponding to the provision of Indirect Participation Services), 9th Bis 1., 9th Bis 2., 9th Bis 3., 9th Bis 4., 9th Bis 5., 9th Bis 6., 9th Bis 7., 9th Bis 8., 9th Bis 9., Section I Bis 2 (Transfer instructions corresponding to the provision of Indirect Participation Services), 9th Bis 10., 12th, last paragraph, 16th Bis., 19th, second and penultimate paragraphs, 20th, last paragraph, 20th Bis., 27th, second paragraph, 31st, second paragraph, 43rd, second paragraph, 46th, fourth paragraph, 72nd, second paragraph of section I, as well as sections I Ter, II Bis and V, 73rd, third paragraph of section I, 74th, second paragraph, 86th, sections I Bis and III Bis, 89th, second paragraph, and 100th, third, fourth and fifth paragraphs, of the Rules provided for in this Circular, shall enter into force on June 19, 2023.”

“FIFTEENTH.- The Participant who falls under the circumstance referred to in the 5th Bis., section I, of these Rules, shall deliver to the Administrator a report with the characteristics provided for in the 74th of the SPEI Rules, in terms of the modifications provided for in this Circular, in which said Participant verifies the compliance with the information security, operational risk management and certification requirements established in the 58th, sections I, II and III, of the Technological Infrastructure necessary for the operation of the SPEI Instances in accordance with the Rules indicated in Transitional Rule SECOND. The delivery of the aforementioned report shall be made no later than February 28, 2023.

…”

“SIXTEENTH.- During the period between May 12, 2022, and June 18, 2023, Participants shall send Transfer Orders derived from indirect participation schemes referred to in Transitional Rule NINTH, using the payment type format specifically established for said period within section 8 of the Manual.”

Tuesday, December 13, 2022 OFFICIAL GAZETTE 3 “SEVENTEENTH.- Participants shall have until June 19, 2023, to designate, in accordance with what is provided in the 59th, 59th Bis. and 59th Bis 1. of the SPEI Rules, in terms of the modifications provided for in this Circular, the substitutes for the persons responsible for SPEI regulatory compliance and for SPEI information security officers, respectively.”

“NINETEENTH.- The report referred to in the 9th Bis 7., section VII, shall be presented, for the first time, no later than July 20, 2023 and, subsequently, in accordance with the period established in said section.”

“TWENTIETH.- CoDi Transfer Orders, from the entry into force of this Circular until February 21, 2023, shall be subject to the following timeframes: I. and II. … From February 22, 2023, CoDi Transfer Orders shall be subject to the timeframes provided in the cited Rules.”

“TWENTY-FIRST.- CoDi Transfer Orders that the Participants in question process as part of Indirect Participation Services provided to their Clients, in accordance with the applicable Rules of this Circular, during the period between June 19, 2023, and until December 8, 2023, shall be subject to the following timeframes: I. to V. … From December 9, 2023, CoDi Transfer Orders that the Participants in question process as part of Indirect Participation Services shall be subject to the timeframes provided in the cited Rules.”

“TWENTY-SECOND.- Participants who, until February 23, 2023, materially provide or offer services equivalent to Indirect Participation Services to their Clients, shall notify the Bank of Mexico, no later than that same date, whether they decide to offer said Indirect Participation Services to their Clients in accordance with the applicable SPEI Rules to that circumstance of SPEI, once they enter into force on June 19, 2023, or whether they decide not to offer said Indirect Participation Services from that date. In this case, the aforementioned Participants who decide to offer the Clients mentioned the Indirect Participation Services, in accordance with the applicable Rules provided for in this Circular, shall notify the Clients to whom they provide materially equivalent services that, no later than June 19, 2023, they must sign the Indirect Participation Service Contract that said Participants prepare in accordance with what is provided in the 9th Bis 4. of the SPEI Rules. For these purposes, the parties may determine the signing of a new contract or a modifying agreement that includes the elements established in the SPEI Rules for the Indirect Participation Service Contract.

In the event that the Participant’s Client decides not to enter into the aforementioned contract or modifying agreement referred to in the preceding paragraph, the Participant shall reject, no later than June 19, 2023, the Send Requests that this Client issues to process, on behalf of its respective clientele, fund transfers through SPEI, as well as the Transfer Orders Accepted by SPEI that said Participant receives and that correspond to transfers that said Client offers to carry out on behalf of its clientele.

Likewise, in the event that, on February 23, 2023, the Participant decides not to provide Indirect Participation Services as indicated in the first paragraph of this Transitional Rule, it shall notify its Clients to whom it provides services materially equivalent to Indirect Participation Services, no later than that date, and, no later than June 19, 2023, it must cease the operation of said services.

From February 23, 2023, only those Participants who, prior to the start of the service provision, have notified the Administrator may continue to provide services materially equivalent to Indirect Participation Services. In this case, the aforementioned Participants may continue providing the aforementioned services until June 19, 2023.”

“TWENTY-THIRD.- Participants who, on the date of entry into force of the general provisions issued by the Bank of Mexico regarding clearing houses for indirect participation fund transfers, as provided for in the 9th Bis 1., first paragraph, of these Rules, materially provide or offer services equivalent to Indirect Participation Services to their Clients, may continue providing said services provided that, during the first thirty natural days counted from that entry into force date, they present to the Bank of Mexico their respective authorization requests to operate as said clearing houses. Likewise, in the event that the publication of the aforementioned provisions takes place after the date of June 19, 2023, corresponding to the entry into force indicated in Transitional Rule NINTH, second paragraph, above, those Participants who offer Indirect Participation Services in accordance with these Rules may continue providing said services, provided that they present their respective authorization requests to operate as the aforementioned clearing houses within the same period as previously referred to. In the aforementioned circumstances, the corresponding Participants may continue offering the mentioned services until they obtain the indicated authorizations within a period no greater than one hundred eighty natural days counted from the entry into force of the cited provisions.”

“TWENTY-FIFTH.- That entity that, on the one hand, has fallen under the circumstance of the eighth transitional provision of the “Decree by which the Law to Regulate Financial Technology Institutions is issued and various provisions of the Credit Institutions Law, the Securities Market Law, the General Law of Organizations and Auxiliary Credit Activities, the Law for Transparency and Ordering of Financial Services, the Law to Regulate Credit Information Societies, the Law for Protection and Defense of Financial Services Users, the Law to Regulate Financial Groups, the Law of the National Banking and Securities Commission and, the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin”, published in the Official Gazette of the Federation on March 9, 2018, and that, on the other hand, derived from the application presented in accordance with said transitional provision, has obtained, prior to the entry into force of this Circular, the authorization of the National Banking and Securities Commission, in accordance with applicable regulations, to organize and operate as an electronic payment fund institution that, in turn, is subject to compliance with the conditions established therein for said authorization to take effect, may enter into the Indirect Participation Service Contract with the Participant in question that allows it to acquire the status of Indirect Participant and carry out the respective operations until such time as the aforementioned authorization takes effect.

The Participant providing Indirect Participation Services to the entity referred to in the preceding paragraph shall stipulate in the respective Indirect Participation Service Contract the obligation of said entity to inform it of the date on which the authorization referred to in said paragraph enters into force or the resolution of the National Banking and Securities Commission notifying the non-compliance with the established conditions or the expiration of the period imposed for these effects. Likewise, the aforementioned Indirect Participation Service Contract shall stipulate the obligation of the Participant to rescind said contract one hundred seventy natural days after whichever of the following dates corresponds: (a) June 19, 2023, provided that, on that date, the aforementioned entity has not obtained the authorization referred to in this paragraph or (b) the date prior to June 19, 2023, on which the aforementioned entity was notified of the resolution previously indicated in this paragraph. During the aforementioned one hundred seventy-day period, the Participant shall not assign new CLABE sets to the Accounts of the Indirect Clients of these entities. Likewise, during the first thirty natural days of said period, the Participant shall deliver to the Administrator, in accordance with what is established in the 98th of the Rules, the work plan of the referred entity that establishes the activities they will carry out to cease offering SPEI services to Indirect Clients prior to the rescission of the Indirect Participation Service Contract.

The Participant providing Indirect Participation Services to the entity referred to in this Transitional Rule shall not be obligated to assign the CLABE sets, as well as the digits that will identify each of said CLABEs, in accordance with what is provided in the third paragraph of the 9th of these Rules, in the event that said entity, no later than June 19, 2023, has presented to the Administrator its application for admission to SPEI as a Participant, in accordance with the 57th of these Rules.”

TRANSITIONAL SINGLE.- This Circular shall enter into force on the next Banking Business Day following its publication in the Official Gazette of the Federation.

Tuesday, December 13, 2022 OFFICIAL GAZETTE 5 Mexico City, December 1, 2022.- BANK OF MEXICO: General Legal Director, Luis Urrutia Corral.- Rubric.- Director of Policy and Studies of Payment Systems and Market Infrastructures, Othón Martino Moreno González.- Rubric.

For any inquiries regarding the content of this Circular, the Bank of Mexico is at your disposal through the Directorate of Central Bank Authorizations and Sanctions at telephone (55) 5237-2000 extension 3200.