Circular 17/2018 — Modification of Circular 13/2017

Monday, December 24, 2018 OFFICIAL GAZETTE (First Section)

BANK OF MEXICO

CIRCULAR 17/2018 addressed to credit institutions and other companies that professionally provide the Fund Transfer Service, regarding the reform to the General Provisions applicable to participants in the Interbank Electronic Payment System (SPEI), in matters of Risk Mitigation.

A logo appears at the margin, stating: Bank of Mexico.

CIRCULAR 17/2018

TO CREDIT INSTITUTIONS AND OTHER COMPANIES THAT PROFESSIONALLY PROVIDE THE FUND TRANSFER SERVICE:

SUBJECT: REFORM TO THE GENERAL PROVISIONS APPLICABLE TO PARTICIPANTS IN THE INTERBANK ELECTRONIC PAYMENT SYSTEM (SPEI), IN MATTERS OF RISK MITIGATION.

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, as well as the protection of the public's interests, has considered it necessary to strengthen the measures adopted to robustify the security of fund transfers originating from client accounts that may imply greater risk, by establishing homogeneous practices regarding the treatment to be given to these accounts, in order to promote appropriate conditions for a risk control environment that provides certainty and confidence to both participants in payment systems and users.

Therefore, the Bank of Mexico, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States; Articles 2, 3, fraction I, 24, and 35 Bis of the Bank of Mexico Law; Articles 10 and 19 of the Payment Systems Law; Article 22 of the Law for Transparency and Ordering of Financial Services; Articles 4, first paragraph, 8, paragraphs fourth and seventh, 10, first paragraph, 12 first paragraph in relation to Article 20, fraction XI, and 14 Bis first paragraph in relation to 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 Operations and Payment Systems and the General Legal Directorate, respectively; as well as Article Second, fractions VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to modify fraction VIII of Article 15a of the General Provisions applicable to credit institutions and other companies that professionally provide the fund transfer service, as well as to participants in payment systems administered by the Bank of Mexico and other interested parties wishing to act as participants in said systems, contained in Circular 13/2017, to read as follows:

GENERAL PROVISIONS APPLICABLE TO CREDIT INSTITUTIONS AND OTHER COMPANIES THAT PROFESSIONALLY PROVIDE THE FUND TRANSFER SERVICE, AS WELL AS TO PARTICIPANTS IN PAYMENT SYSTEMS ADMINISTERED BY THE BANK OF MEXICO AND TO OTHER INTERESTED PARTIES WISHING TO ACT AS PARTICIPANTS IN SAID SYSTEMS

“15a. Obligations of SPEI Participants.- SPEI Participants, in addition to what is established in Article 13a of these Rules, must comply with the following obligations:

I. to VII. ....

VIII. Regarding any particular account that, in accordance with the previous fraction VII, they have opened in the name of any of the clients referred to in the previous fraction VI, refrain from opening series accounts, linked to said account, that the client in question may, in turn, offer to their users for the sending or receiving of fund transfers through SPEI in favor of said client, except in those cases where the client demonstrates, to the satisfaction of the respective SPEI Participant, that it meets the characteristics and requirements expressly provided for this purpose in the Internal Norms;

IX. to XVII. ….”

TRANSITORY

SINGLE.- The provisions of this Circular shall enter into force on the twentieth Banking Business Day following its publication in the Official Gazette of the Federation.

(First Section) OFFICIAL GAZETTE Monday, December 24, 2018

Mexico City, December 19, 2018.- The General Director of Operations and Payment Systems, Jaime José Cortina Morfín.- Signature.- The General Legal Director, Luis Urrutia Corral.- Signature.

For any inquiries regarding the content of this Circular, please contact the Central Bank Authorizations and Consultations Department, at telephone numbers (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000 Ext. 3200.