Circular 17/2014 — Information that Financial Entities Must Provide to Credit Reporting Agencies

(First Section) OFFICIAL GAZETTE Friday, October 3, 2014 BANCO DE MEXICO CIRCULAR 17/2014, addressed to General Warehouses, Guarantee Institutions, Insurance Institutions, Brokerage Firms, Multiple Banking Institutions, Development Banking Institutions, Public Entities whose main activity is the granting of credits, Economic Promotion Trusts constituted by the Federal Government, Credit Unions, Savings and Loan Associations; Community Financial Societies; Popular Financial Societies and Cooperative Savings and Loan Societies with operation levels I to IV; Financial Entities acting as Trustees in Trusts that grant or administer credit, loan or financing to the public, as well as to Regulated and Unregulated Multiple-Object Financial Societies, regarding the General Provisions applicable to the information that financial entities must provide to Credit Reporting Agencies.

A logo is placed at the margin, which says: Bank of Mexico.

CIRCULAR 17/2014
TO GENERAL WAREHOUSES,
GUARANTEE INSTITUTIONS, INSURANCE INSTITUTIONS, BROKERAGE FIRMS, MULTIPLE BANKING INSTITUTIONS, DEVELOPMENT BANKING INSTITUTIONS, PUBLIC ENTITIES WHOSE MAIN ACTIVITY IS THE GRANTING OF CREDITS, TRUSTS OF ECONOMIC PROMOTION CONSTITUTED BY THE FEDERAL GOVERNMENT, CREDIT UNIONS, SAVINGS AND LOAN ASSOCIATIONS; FINANCIAL SOCIETIES COMMUNITARIAN; POPULAR FINANCIAL SOCIETIES AND COOPERATIVE SAVINGS AND LOAN SOCIETIES WITH LEVELS OF OPERATION I TO IV; FINANCIAL ENTITIES THAT ACT AS TRUSTEES IN TRUSTS THAT GRANT OR ADMINISTER CREDIT, LOAN OR FINANCING TO THE PUBLIC, AS WELL AS TO THE MULTIPLE-OBJECT FINANCIAL SOCIETIES REGULATED AND UNREGULATED:

SUBJECT: GENERAL PROVISIONS APPLICABLE TO THE INFORMATION THAT THE FINANCIAL ENTITIES MUST PROVIDE TO THE CREDIT REPORTING AGENCIES.

The Bank of Mexico, with the objective of continuing the promotion of the sound development of the financial system, attentive to the reforms to various legal provisions regarding the reporting of credit operations to credit reporting agencies, included in the decree published in the Official Gazette of the Federation on January 10 of the current year, in particular, those by virtue of which financial entities, as this term is defined in the applicable regulations, are obliged to be users of said agencies, as well as to provide information in accordance with the Law to Regulate Credit Reporting Agencies, considers it convenient to establish appropriate terms and conditions so that such entities duly comply with said obligation.

For the above, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 of the Bank of Mexico Law, 20, paragraph third, and 67, fraction I of the Law to Regulate Credit Reporting Agencies, 22, 23 Bis 1 and 47 of the Law for the Transparency and Ordering of Financial Services, 87-C Bis of the General Law of Organizations and Auxiliary Activities of Credit, 4, paragraph first, 8, paragraphs fourth and seventh, 10, paragraph first, 14 Bis, in relation with 17, fraction I, and 14 Bis 1, paragraph first, in relation with 25 Bis 1, fraction IV, of the Internal Regulations of the Bank of Mexico, which provide for its attribution to issue provisions through the General Legal Direction and the General Direction of Affairs of the Financial System, respectively, as well as Second of the

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) Agreement on the Adscription of the Administrative Units of the Bank of Mexico, fractions I and X, has resolved to issue the following:

“GENERAL PROVISIONS APPLICABLE TO THE INFORMATION THAT FINANCIAL ENTITIES MUST PROVIDE TO CREDIT REPORTING AGENCIES.

CHAPTER I
Preliminary Provisions

1st. Objective and Definitions.- These provisions have as their objective to establish the terms and conditions to which Financial Entities must be subject when providing information regarding their Credit Operations to at least one Agency.

For the purposes of these provisions, the terms used herein shall have the same meaning as that indicated in article 2° of the Law to Regulate Credit Reporting Agencies (hereinafter, the Law). Additionally, for the purposes of these provisions, the following shall be understood, in singular and plural:

Contract: that which is celebrated between an Agency and a Financial Entity for the provision of the services indicated in article 5º of the Law.

Credits: the credits, loans or financing, that Financial Entities have granted to Clients.

Financial Entities:
the ones authorized to operate in national territory and which the laws recognize as such, including general warehouses, guarantee institutions, insurance institutions, brokerage firms, multiple banking institutions; as well as development banking institutions; Public Entities; Economic Promotion Trusts; credit unions; savings and loan associations, community financial societies; popular financial societies and cooperative savings and loan societies with operation levels I to IV; financial entities that act as trustees in trusts that grant Credit, loan or financing to the public, as well as to financial entities of multiple object regulated and unregulated.

Credit Information:
to that relative to Credit Operations carried out by Financial Entities with their respective Clients, which must be provided in the form and terms indicated in the forms and other requirements established by the Agencies.

Operations Analogous to
Credit Operations:
financial leasing, financial factoring or any other operation that may be determined with such character in accordance with the applicable provisions.

Credit Operations:
Credits and Operations Analogous to Credits.

Public Entities:
entities of the semi-public administration and other public entities referred to in the Federal Law of Semi-Public Entities, whose main activity, in accordance with the provisions governing their functioning and operation, is the granting of credits, including the Institute of the National Housing Fund for Workers, the Institute of Security and Social Services for State Workers in its capacity as administrator of the Housing Fund, the Institute of the National Fund for the Consumption of Workers and the National Financial Entity for Agricultural, Rural, Forestry and Fisheries Development, among others.

Economic Promotion
Trusts:
those public trusts referred to in article 3º of the Credit Institutions Law, including the Guarantee and Promotion Fund for Agriculture, Livestock and Poultry, the Guarantee and Promotion Fund for Fishing Activities, the Banking Operation and Financing Fund for Housing, the Special Fund of Technical Assistance and Guarantee for Agricultural Credits, the Special Fund for Agricultural Financing, the Mining Promotion Trust, the National Fund for Tourism Promotion, the National Popular Housing Trust Fund, the Military Housing Fund, among others.

CHAPTER II
Provisions Directed to Users

2nd. Obligation to provide information.- Financial Entities that celebrate Credit Operations in accordance with the regulations applicable to them must provide, to at least one Agency, the respective Credit Information in accordance with these provisions.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) 3rd. Form of providing information.- Financial Entities must provide the Agency in question the Credit Information of their Clients in a complete and truthful manner. For each Credit Operation, Financial Entities must deliver at least the information indicated in the Annex of these provisions, by means of forms and in the form and terms that, for said purposes, the Agency makes known to them.

4th. Delivery of Credit Information.- Financial Entities must periodically deliver to the Agency the Credit Information of new Credit Operations carried out and that which corresponds to update with respect to the previously reported. The delivery must be made within 30 days following that in which they delivered the last report. This, without prejudice to the updates they carry out in terms of the Law.

5th. Responsible for Credit Information.- Financial Entities have the obligation to notify in writing to the Agency the name of the person or persons responsible for providing the Credit Information referred to in the 3rd of these provisions and other obligations established by the Law. The aforementioned designation must fall on executives who are in the two immediate lower hierarchies to that of the general director of the Financial Entity in question, who must in turn have the responsibility within said institutions of the handling of Credit Information.

Likewise, Financial Entities must notify the Agency of the additions and removals of any of the persons referred to in the previous paragraph, within a maximum period of 15 days following that in which they carried out the addition or removal.

CHAPTER III
Non-Compliance

6th. Sanctions.- Non-compliance with these provisions will be sanctioned by the Bank of Mexico in terms of what is provided by articles 67 of the Law and 47 of the Law for the Transparency and Ordering of Financial Services, as well as other applicable provisions.

ANNEX
Information that Financial Entities must present to Agencies for each Credit Operation

a) INFORMATION CORRESPONDING TO NATURAL PERSONS The minimum requested information will be divided into four sections:
i. Client or Borrower (Client)
ii. Address
iii. Employment or Economic Activity
iv. Credit
The fields must be required and have a valid data.

i. Client
Number Field Name Description

1. Client RFC Federal Taxpayer Registry (RFC) of the Client, if homoclave is available include it.
2. First Name Full first name of the Client.
3. Second and other
   names
   Second and other names, if applicable, full of the Client; when the information is available.
4. Paternal Surname Paternal Surname of the Client.
5. Maternal Surname Maternal Surname of the Client; when the information is available.
6. Birth Date Day, month and year of the Client.

ii. Address
Number Field Name Description

1. Street Of the Client's Address.
2. Exterior Number Of the Client's Address.
3. Interior Number Of the Client's Address.
4. Neighborhood Of the Client's Address.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) Number Field Name Description
5. Delegation or
municipality
Of the Client's Address.
6. City Of the Client's Address.
7. State Of the Client's Address.
8. Postal Code Of the Client's Address.

iii. Employment or Economic Activity
Number Field Name Description

1. Name or corporate
   name of the employer
   Name of the Client's employer, whether name of a Natural Person or the Corporate Name of a company, complete.

iv. Credit
Number Field Name Description

1. User Key that
   reports the
   Credit
   Key of the User or Institution that reports the Credit.
2. Name of the User
   that reports the
   Credit
   Name of the User or Institution that reports the Credit.
3. Current Credit
   Number
   Credit Number assigned by the User that reports the Credit, in accordance with the contract.
4. Type of
   responsibility
   Responsibility that the Client has with the Credit.
5. Type of Credit Type of Credit that the Client has with the User or grantor.
6. Product Type Product type that the Client has with the User or grantor.
7. Currency Indicates the currency in which the Credit was granted to the Client.
8. Payment Frequency Periodicity with which payments are made.
9. Payment Amount Payment amount according to payment frequency.
10. Opening Date Day, month and year in which the User or grantor reports the opening of the
    Credit to the Client.
11. Date of the last
    payment
    Day, month and year in which the Client made the last payment.
12. Credit Amount at
    origination
    Credit Amount at origination in case of fixed payment or mortgage credits. In case of revolving credits it is the Credit limit at the opening of the line.
13. Term in months Original term of the Credit in months.
14. Date of the last
    disposition or purchase
    Day, month and year most recent in which the Client made the last purchase or disposition.
15. Date of the report,
    update or cutoff.
    Day, month and year in which the User or grantor performed the last update the credit record.
16. Maximum Credit
    used
    Maximum amount of Credit used.
17. Current Balance Total amount of pending debt to pay including interest,
    commissions or any other accessory.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) Number Field Name Description
18. Overdue Balance Amount of the overdue balance as of the report date, including principal,
ordinary interest, commissions, etc.
19. Payment form or
current payment
Code that indicates if the Credit is current (without delay) or has days of delay.
20. Date of the first
default
Date on which the Client defaulted for the first time on the requested payment of the Credit.
21. Unpaid Principal
Balance
Amount of Credit pending to amortize at the moment it has been updated by the User or grantors, excluding interest, commissions or any other accessory.
22. Amount of the last
payment
Amount of the last payment made by the Client.

b) INFORMATION CORRESPONDING TO NATURAL PERSONS WITH BUSINESS ACTIVITY The minimum requested information will be divided into four sections:
i. Client or Borrower (Client)
ii. Address
iii. Credit
iv. Credit Guarantees
The fields must be required and have a valid data.

i. Client
Number Field Name Description

1. Economic
   Activity
   Economic Activity (by sector).
2. Client RFC Federal Taxpayer Registry (RFC) of the Client, include homoclave.
3. First Name Full first name of the Client.
4. Second and other
   Names
   Second and other names, if applicable, full of the Client; when the information is available.
5. Paternal Surname Paternal Surname of the Client.
6. Maternal Surname Maternal Surname of the Client; when the information is available.

ii. Address
Number Field Name Description

1. Street Of the Client's Address.
2. Exterior Number Of the Client's Address.
3. Interior Number Of the Client's Address.
4. Neighborhood Of the Client's Address.
5. Delegation or
   municipality
   Of the Client's Address.
6. City Of the Client's Address.
7. State Of the Client's Address.
8. Country Of the Client's Address.
9. Postal Code Of the Client's Address.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section)
iii. Credit
Number Field Name Description

1. User Key that
   reports the
   Credit
   Key of the User or Institution that reports the Credit.
2. Name of the User
   that reports the
   Credit
   Name of the User or Institution that reports the Credit.
3. Current Credit
   Number
   Credit Number assigned by the User that reports the Credit, in accordance with the contract.
4. Type of Credit Type of Credit that the Client has with the User or grantor.
5. Currency Indicates the currency in which the Credit was granted to the Client.
6. Payment Frequency Periodicity with which payments are made.
7. Payment Amount Payment amount according to payment frequency.
8. Opening Date Day, month and year in which the User or grantor reports the opening of the
   Credit to the Client.
9. Date of the last
   payment
   Day, month and year in which the Client made the last payment.
10. Credit Amount at
    origination
    Credit Amount at origination in case of fixed payment or mortgage credits. In case of revolving credits it is the Credit limit at the opening of the line.
11. Term in months Original term of the Credit in months.
12. Date of the report,
    update or cutoff.
    Day, month and year in which the User or grantor performed the last update the credit record.
13. Maximum Credit
    used
    Maximum amount of Credit used.
14. Current Balance Total amount of pending debt to pay including interest,
    commissions or any other accessory.
15. Overdue Balance Amount of the overdue balance as of the report date, including principal,
    ordinary interest, commissions, etc.
16. Payment form or
    current payment
    Code that indicates if the Credit is current (without delay) or has days of delay.
17. Date of the first
    default
    Date on which the Client defaulted for the first time on the requested payment of the Credit.
18. Unpaid Principal
    Balance
    Amount of Credit pending to amortize at the moment it has been updated by the User or grantors, excluding interest, commissions or any other accessory.

iv. Credit Guarantees
Number Field Name Description

1. Guarantor RFC Federal Taxpayer Registry (RFC) of the Guarantor, include homoclave.
2. Name or Corporate
   Name
   Name or Corporate Name of the company, complete. In case that the Guarantor is a legal entity.
3. First Name First name of the Guarantor.
4. Second and other
   Names
   Second and other names, if applicable, full of the Guarantor; when the information is available.
5. Paternal Surname Paternal Surname of the Guarantor.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section) Number Field Name Description
6. Maternal Surname Maternal Surname of the Guarantor.
7. Street Of the Guarantor's Address.
8. Exterior Number Of the Guarantor's Address.
9. Interior Number Of the Guarantor's Address.
10. Neighborhood Of the Guarantor's Address.
11. Delegation or
Municipality
Of the Guarantor's Address.
12. City Of the Guarantor's Address.
13. State Of the Guarantor's Address.
14. Country Of the Guarantor's Address.
15. Postal Code Of the Guarantor's Address.
16. Type of Guarantor Indicator of whether the Guarantor is a natural person, natural person with business activity or
legal entity.

c) INFORMATION CORRESPONDING TO LEGAL ENTITIES The information is ordered in five sections according to its content:
i. Client or Borrower (Client)
ii. Address
iii. Shareholders
iv. Credit
v. Credit Guarantees
The fields must be required and have a valid data.

i. Client
Number Field Name Description

1. Economic
   Activity
   Economic Activity (by sector).
2. Client RFC Federal Taxpayer Registry (RFC) of the Client, include homoclave.
3. Name or corporate
   name
   Name or Corporate Name of the company, complete.
4. Portfolio
   Qualification
   Risk qualification of the regulatory methodology if applicable.

ii. Address
Number Field Name Description

1. Street Of the Client's Address.
2. Exterior Number Of the Client's Address.
3. Interior Number Of the Client's Address.
4. Neighborhood Of the Client's Address.
5. Delegation or
   municipality
   Of the Client's Address.
6. City Of the Client's Address.
7. State Of the Client's Address.
8. Country Of the Client's Address.
9. Postal Code Of the Client's Address.

Friday, October 3, 2014 OFFICIAL GAZETTE (First Section)
iii. Shareholders
Number Field Name Description

1. Company Name
   In case that the Shareholder is a legal entity.
2. First Name First name of the Shareholder, in case that the Shareholder is a
   natural person or natural person with business activity.
3. Second and other
   Names
   Second and other names, if applicable, full of the Shareholder, in case that the Shareholder is a natural person or natural person with business activity; when the information is available.
4. Paternal Surname Paternal Surname of the Shareholder, in case that the Shareholder is a
   natural person or natural person with business activity.
5. Maternal Surname Maternal Surname of the Shareholder, in case that the Shareholder is a
   natural person or natural person with business activity.
6. Participation
   Percentage
   Percentage of shares held by the Shareholder.

iv. Credit
Number Field Name Description

1. User Key that
   reports the
   Credit
   Key of the User or Institution that reports the Credit.
2. Name of the User
   that reports the
   Credit
   Name of the User or Institution that reports the Credit.
3. Current Credit
   Number
   Credit Number assigned by the User that reports the Credit, in accordance with the contract.
4. Type of Credit Type of Credit that the Client has with the User or grantor.
5. Currency Indicates the currency in which the Credit was granted to the Client.
6. Payment Frequency Periodicity with which payments are made.
7. Payment Amount Payment amount according to payment frequency.
8. Opening Date Day, month and year in which the User or grantor reports the opening of the
   Credit to the Client.
9. Date of the last
   payment
   Day, month and year in which the Client made the last payment.
10. Credit Amount at
    origination
    Credit Amount at origination in case of fixed payment or mortgage credits. In case of revolving credits it is the Credit limit at the opening of the line.
11. Term in months Original term of the Credit in months.
12. Date of the report,
    update or cutoff.
    Day, month and year in which the User or grantor performed the last update the credit record.
13. Maximum Credit
    used
    Maximum amount of Credit used.
14. Current Balance Total amount of pending debt to pay including interest,
    commissions or any other accessory.
15. Overdue Balance Amount of the overdue balance as of the report date, including principal,
    ordinary interest, commissions, etc.

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

Number Name Field Description
16. Form of payment or current payment
Code indicating whether the Credit is current (without delay) or has days of delay.
17. Date of first default
Date on which the Client first failed to make the requested payment of the Credit.
18. Outstanding principal balance
Amount of the Credit pending amortization at the time it was updated by the User or grantors, excluding interest, commissions, or any other accessory charges.

v. Credit Guarantees
Number Name Field Description

1. Tax ID of Guarantor Federal Taxpayer Registry (RFC) of the Guarantor, including homoclave.
2. Name or corporate name
   Name or Corporate Name of the company, complete. In case the Guarantor is a legal entity.
3. First name
   First name of the Guarantor.
4. Second and other names
   Second and other names, if applicable, complete of the Guarantor; when the information is available.
5. Paternal surname
   Paternal surname of the Guarantor.
6. Maternal surname
   Maternal surname of the Guarantor.
7. Street
   From the Address of the Guarantor.
8. Exterior number
   From the Address of the Guarantor.
9. Interior number
   From the Address of the Guarantor.
10. Neighborhood
    From the Address of the Guarantor.
11. Delegation or municipality
    From the Address of the Guarantor.
12. City
    From the Address of the Guarantor.
13. State
    From the Address of the Guarantor.
14. Country
    From the Address of the Guarantor.
15. Postal code
    From the Address of the Guarantor.
16. Type of Guarantor
    Indicator of whether the Guarantor is an individual, individual with business activity, or legal entity.

TRANSITORY PROVISIONS
FIRST.- These Provisions shall enter into force the day following their publication in the Official Gazette of the Federation. SECOND.- Financial Entities that as of the date of entry into force are not providing Credit Information to any Agency, shall have ninety days counted from the entry into force of these Provisions to begin providing said information.

Mexico, D.F., September 29, 2014.- The General Legal Director, Luis Urrutia Corral.- Rubric.- The General Director of Affairs of the Financial System, Jesús Alan Elizondo Flores.- Rubric. For any inquiries regarding the content of this Circular, please contact the Department of Authorizations, Queries and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000, Ext. 3200.