Regulatory Alerts2023-12-20 | Circular 19/2023Added · Updated
Circular 19/2023 — Modifies Circular 4/2012
The Bank of Mexico modifies Annex 1 of Circular 4/2012 to update risk management requirements for entities conducting derivative operations. The amendments require the establishment of an Independent Risk Management Unit (UAIR) reporting directly to the risk committee, mandate the inclusion of climate and environmental risks in risk assessments, and impose stricter controls on business continuity planning with a maximum two-hour recovery time for alternate centers. Additionally, the rules enforce annual validation of valuation models by independent experts, specific conduct standards for staff, and enhanced internal audit and operational verification procedures for all authorized derivative products.
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