Circular 17/2011 — Modification of Circular 15/2011

CIRCULAR 17/2011 Mexico, D.F., July 25, 2011. TO MULTIPLE BANKING INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 15/2011

The Bank of Mexico, with the objective of continuing to promote the sound development of the financial system and to foster the proper functioning of payment systems, taking into consideration various inquiries from issuers of foreign currency bank cards regarding the inclusion of the names of natural persons who may use them on such cards, has deemed it appropriate to modify the regulation applicable to such bank cards, in order to promote the use of the product.

For the foregoing, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 and 26 of the Bank of Mexico Law; 46, fraction XXVI bis of the Credit Institutions Law; 3, fraction XII and 22 of the Law for Transparency and Orderly Regulation of Financial Services; as well as the first paragraph of Article 4°, the fourth and seventh paragraphs of Article 8°, the first paragraph of Article 10°, Article 12 Bis in relation to Article 20, fraction XI, the first paragraph of Article 14 Bis 1 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 the fourth paragraph of numeral M.12.7 provided for in Circular 15/2011, to read as follows:

M.1 PASSIVE OPERATIONS M.12. CHARACTERISTICS OF FOREIGN CURRENCY OPERATIONS

“M.12.7 BANK CARDS . . . Institutions may freely determine: a) the physical characteristics of the cards; b) their maximum balance; and c) their trade name. Notwithstanding the foregoing, the expiration date and the denomination or any other expression, symbol, emblem, or logo of the issuing institution must be clearly shown on the front of the cards. Likewise, the cards must show the name of the natural person who may dispose of the resources assigned to the cards. . . .”

TRANSITORY SINGLE. The modification made by this Circular to Circular 15/2011 shall take effect on July 28, 2011.