Circular 23/2020 — Modifies Circular 3/2012

116 DIARIO OFICIAL Viernes 5 de junio de 2020 BANCO DE MEXICO CIRCULAR 23/2020 directed to credit institutions, regulated multiple-object financial societies that maintain equity links with credit institutions, and the National Financial Development Company for Agriculture, Rural, Forestry and Fisheries, regarding modifications to Circular 3/2012 (deposit accounts for adolescents and provisional maximum amounts for level 2 accounts).

At the margin a logo, which says: Bank of Mexico.- "2020, Year of Leona Vicario, Meritorious Mother of the Fatherland".

CIRCULAR 23/2020 TO CREDIT INSTITUTIONS, REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS AND THE NATIONAL FINANCIAL DEVELOPMENT COMPANY FOR AGRICULTURE, RURAL, FORESTRY AND FISHERIES: SUBJECT: MODIFICATIONS TO CIRCULAR 3/2012 (DEPOSIT ACCOUNTS FOR ADOLESCENTS AND PROVISIONAL MAXIMUM AMOUNTS FOR LEVEL 2 ACCOUNTS)

The Bank of Mexico, with the purpose of continuing to promote the sound development of the financial system, protect the interests of the public and foster the proper functioning of payment systems, in consideration of the reforms to the Credit Institutions Law carried out by decree published in the Official Gazette of the Federation on March 27, 2020, pursuant to which Article 59 of said Law empowers the Bank of Mexico to determine, through general provisions, the characteristics, transaction level, limitations, requirements, terms and conditions of accounts opened in the name of adolescents, from the age of fifteen completed, without the intervention of their representatives, has deemed it necessary to establish the characteristics and conditions that allow said persons to open and operate the referred accounts in conditions adequate to the purposes recognized in the cited Law. In addition to the above, given the circumstances derived from the COVID-19 pandemic, which have motivated an increase in requests for payroll and personal loans by individuals, and in particular, those who are only holders of level 2 money demand deposit accounts referred to in the "Applicable Provisions to the operations of credit institutions, regulated multiple-object financial societies that maintain equity links with credit institutions and the National Financial Development Company for Agriculture, Rural, Forestry and Fisheries", issued by this Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, as it has been modified by subsequent resolutions, this Central Institute considers it convenient to increase, on a provisional basis, the limit of monthly credits that these Provisions impose for that level of account.

For the above, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 and 26, of the Bank of Mexico Law, 22 of the Law for Transparency and Ordering of Financial Services, [48, 48 Bis 2 and] 59, of the Credit Institutions Law, 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 12, first paragraph, in relation to 19 Bis, fraction V, 12 Bis, first paragraph, in relation to 20 Quáter, fraction IV, 14 Bis, first paragraph, in relation to 17, fraction I, and 14 Bis 1, first paragraph, in relation to 25 Bis 1, fraction IV, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Banking Operations, the General Directorate of Payment Systems and Market Infrastructures, the General Legal Directorate and the General Directorate of Financial System Affairs, respectively, as well as Second, fractions I, VI, X and XVII, of the Agreement on the Attachment of Administrative Units of the Bank of Mexico, has resolved to modify the index, the definition of "Pattern" of Article 2 and Article 14, third paragraph, as well as add Article 24 Bis to the "Applicable Provisions to the operations of credit institutions, regulated multiple-object financial societies that maintain equity links with credit institutions and the National Financial Development Company for Agriculture, Rural, Forestry and Fisheries", contained in Circular 3/2012, to remain in the following terms:

APPLICABLE PROVISIONS TO THE OPERATIONS OF CREDIT INSTITUTIONS, REGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS AND THE NATIONAL FINANCIAL DEVELOPMENT COMPANY FOR AGRICULTURE, RURAL, FORESTRY AND FISHERIES

INDEX ... SECOND TITLE OPERATIONS WITH THE PUBLIC CHAPTER I PASSIVE OPERATIONS Section I Passive operations in national currency ... Section C Other provisions relating to Deposits and loans ...

"Article 24 Bis.- Adolescent Deposit Accounts" ... Definitions Article 2º.- ... ... "Pattern: the person who makes the deposits of Labor Benefits in the respective Ordering Accounts, as well as, in their case, in the adolescent accounts referred to in Article 24 Bis of these Provisions, as part of a Payroll Service contracted by them, or by means of the transfer of funds or the making of electronic fund transfers derived from transfer orders executed by that person." ... Operation Levels "Article 14.- ... I. to IV. ... In level 2 accounts, Institutions may receive monthly deposits in addition to the limit established in the following cases: a) up to the equivalent in national currency to six thousand UDIS, provided that the origin of the resources comes exclusively from subsidies related to government programs supporting specific sectors of the population, and b) up to the equivalent in national currency to fifteen thousand UDIS, provided that the origin of the resources comes exclusively from the disbursement of a payroll or personal loan granted to the account holder by the same depositing Institution." ... "Adolescent Deposit Accounts Article 24 Bis.- Institutions may receive, pursuant to Article 59, third paragraph, of the Credit Institutions Law, any of the Deposits indicated in Article 7, fractions I to V, of these Provisions, from adolescent persons, from the age of fifteen completed, without the intervention of their representatives, provided that said persons have completed at least fifteen years of age at the time of the celebration of the respective Deposit contract.

Institutions that decide to abstain from offering the opening of deposit accounts in the name of the aforementioned adolescent persons must inform the Bank of Mexico of this, as well as their reasons, through a declaration presented to the attention of the Central Banking Authorizations and Consultations Management, no later than twenty Banking Business Days after the day on which they have taken said decision, through the corresponding officials or bodies.

Likewise, in the event that Institutions decide to offer the opening of the aforementioned Deposit accounts, they must inform the Bank of Mexico of the policies they will follow for the offering of said accounts to the respective public. Additionally, the Institutions referred to in this paragraph must inform the Bank of Mexico, in the month of January of each year, in the form and terms that the Financial System Information Directorate will notify them to that effect, the number of those accounts that they have requested to open and that they have not carried out their opening, as well as the reasons for it.

The Deposits indicated in the first paragraph of this article must comply with the characteristics, transaction levels, limitations, requirements, terms and conditions indicated in these Provisions for the types of Deposits that correspond, except for the following:

I. They may only be denominated in pesos, national currency.

II. The sum of the deposits made in a calendar month in the same account of the type of Deposit in question may not exceed the equivalent to three thousand UDIS.

To perform the calculation in UDIS of the limits indicated in this article, Institutions must take the value of said accounting unit from the last Day of the calendar month prior to the month in question.

To determine the maximum amount of deposits during a calendar month, for the purposes of this fraction, Institutions may exclude amounts related to interest and other agreed accessories, refunds for electronic fund transfers and any other bonus that said Institutions make for the use or management of the corresponding Deposit account.

III. In the case of those Deposits referred to in this article that correspond to Demand Deposits, the Accounts that Institutions open may only be level 2, pursuant to what is established in Article 14 of these Provisions for this type of Deposit and, in this case, the additional limit of six thousand UDIS indicated in the third-to-last paragraph of that same article, regarding deposits of resources from subsidies related to government programs supporting specific sectors of the population, will not apply to them.

Institutions may issue debit cards in the name only of the holders of the respective Demand Deposit Accounts when said persons so request, so they may not issue debit cards in the name of third parties as additional cardholders to those corresponding to said holders.

IV. As an exception to what is provided by Article 9 of these Provisions, the resources that Institutions receive for deposit in the accounts of the Deposits referred to in this article will only correspond, in the terms of Article 59, fourth paragraph, of the Credit Institutions Law, to those from government programs, as well as Labor Benefits deposited directly by their Pattern and, in their case, from other Deposit accounts opened in the name of the same holder. In all cases, deposits to the accounts of the Deposits subject of this article may only be made through transfers or electronic fund transfers derived from Deposit accounts opened in the same or other Institutions, as the case may be.

In virtue thereof, Institutions will not allow the deposit of resources in cash or by any means other than the referred transfers or electronic fund transfers.

Without prejudice to the foregoing, in the event that Institutions, pursuant to Article 17, first paragraph, of these Provisions, offer to the holders of the level 2 Accounts they maintain open, the execution of transfer or electronic fund transfer operations that said holders instruct against the respective Accounts, such Institutions must offer that same type of operation to the account holders referred to in this article.

V. In order for account holders to be able to immediately dispose of the deposited resources that correspond to government programs or Labor Benefits, Institutions may only deposit in Demand Deposit Accounts those resources that are transferred directly by the respective public institutions or Patterns, as the case may be. Regarding those adolescent persons who are workers of the dependencies and institutions referred to in the Federal Law of Workers in the Service of the State, Regulatory of Section B) of Article 123 Constitutional, only those who, given what is provided by Article 13 of said Law, have more than the sixteen years of age indicated in said article may celebrate Labor Benefits Deposits.

Without prejudice to the foregoing, the adolescent persons referred to in this article may open with those Institutions that so decide accounts corresponding to any of the Deposits indicated in the first paragraph of this same article, other than Demand Deposits, in order to transfer to them the respective resources corresponding to government programs or Labor Benefits that have been previously deposited in the referred Demand Deposit Accounts.

For the purposes of what is provided in this fraction, Institutions that have decided to offer the opening of Demand Deposit Accounts to adolescent persons pursuant to this article, must allow those who, in their case, receive resources from Labor Benefits that they indicate that, in the respective Accounts, deposits of this type of resources will be made.

Additionally, the Institutions referred to in this paragraph will consider as Labor Benefits Deposits provided for in this fraction those that Patterns request said Institutions to celebrate in the name of adolescent persons who are contracted workers by them.

In the case of those Demand Deposit Accounts that Institutions open to receive resources corresponding to Labor Benefits pursuant to what is provided in this fraction, with the purpose that the Institution in question can ensure that said Accounts are opened for those effects, as well as identify the respective Patterns, it must collect from the account holder or the Pattern, as the case may be, at the time that said account holder or Pattern requests to open the corresponding Account, any of the following documents: a) a pay stub; b) a copy of the employment contract, or c) a letter issued by the Pattern indicating that the adolescent person in whose name the Account would be opened is their worker. Additionally, for the same purposes referred to in this paragraph, Institutions must comply with one of the following requirements:

a) Collect, at the time of the request to open the referred Account, a copy of the identification document in the name of said adolescent person issued by the Mexican Institute of Social Security or the Institute of Security and Social Services for State Workers, as the case may be, or well

b) Allow transfers or transfers of resources corresponding to Labor Benefits only from those persons indicated in the respective transfer or transfer orders that include their respective Federal Taxpayer Registry key, with homoclave, validated by said Institutions before the Tax Administration Service.

VI. Notwithstanding what is provided by Article 17, first paragraph, of these Provisions, the depositing Institutions referred to in this article must only allow the receipt of electronic fund transfers or transfers made by public institutions that have in their charge the execution of government programs, whose resources are susceptible of being delivered in Deposit accounts and, among their beneficiaries, adolescents from the age of fifteen completed are included, as well as by Patterns that Institutions have previously identified as those responsible for depositing the amounts corresponding to Labor Benefits of the account holders indicated in this article.

Additionally, the depositing Institution must receive transfers or electronic fund transfers from Deposit accounts opened in the same Institution or in another, as appropriate, pursuant to this article, in the name of the same holder of the account opened in said Institution, as well as those transfers carried out under the provisions of Title Two, Chapter III, Section II (Transfer of salary, pensions and other labor benefits), of these Provisions, provided that the sum of the deposits made in the respective account in a calendar month does not exceed the amount equivalent to three thousand UDIS indicated in fraction II of this article.

VII. Institutions may make charges to the accounts of the Deposits indicated in this article corresponding to the execution of Direct Debits, mandates or any other charge instructions for the payment of goods and services, with the exception of credits, loans or financing of any type.

VIII. Institutions may agree with the account holders referred to in this article that, in the event that no deposit is made in the respective Deposit accounts during a period of no less than six consecutive months and the account balance is zero, the expiration of the respective contracts will occur on the next Banking Business Day after the termination of said period and, consequently, said Institutions may proceed to close such accounts. In these cases, Institutions must notify the respective account holders, no later than one month prior to the one in which the indicated period will expire, that, if the condition indicated in this fraction is verified, the respective contract will expire on the specific date indicated in said communication. The referred notification must be made by the communication means that Institutions have agreed to that effect with their respective account holders.

IX. Demand Deposit Accounts that Institutions decide to offer to open in the name of adolescents pursuant to this article must also be opened in the same Institutions as Basic Payroll Accounts or Basic Accounts for the General Public, as appropriate to the resources deposited in them, pursuant to what is established to that effect in the General Provisions that Establish Prohibitions and Limits to the Charging of Commissions, issued by the Bank of Mexico through Circular 22/2010, published in the Official Gazette of the Federation on July 26, 2010, as they remain modified pursuant to subsequent resolutions.

Likewise, the Institution to whom a request is made to open a Demand or savings Account referred to in this article must offer, in the first place, the opening of a basic payroll account or a basic account for the general public exempt from the charging of commissions, as the case may be, in terms of the Provisions cited in the previous paragraph. In the event that the respective account holder has rejected opening the basic account that corresponds pursuant to the above, the Institution must collect their express declaration of not having accepted to open the respective account exempt from the charging of commissions.

X. Once the holder of the account of any of the Deposits referred to in this article reaches the age of majority, the depositing Institution must maintain the same terms and conditions for said Deposit that are indicated in this article for a period of no more than six months, during which, unless otherwise agreed, the Institution must transform said Account into a basic account for the general public, pursuant to the Provisions cited in the previous fraction, or, if it corresponds to a Deposit Account to receive Labor Benefits, it must be transformed into a basic demand payroll account pursuant to such Provisions."

Viernes 5 de junio de 2020 DIARIO OFICIAL 121 TRANSITORY PROVISIONS FIRST.- This Circular will enter into force the day after its publication in the Official Gazette of the Federation.

SECOND.- The modification to the third-to-last paragraph of Article 14 will remain in force from the date indicated in the previous Transitory Provision until December 31, 2020. Consequently, from January 1, 2021, said paragraph will be modified in the following terms:

"Operation Levels Article 14.- ... ... I. to IV. ... In level 2 accounts, Institutions may receive monthly deposits in addition to the limit established up to the equivalent in national currency to six thousand UDIS, provided that the origin of the resources comes exclusively from subsidies related to government programs supporting specific sectors of the population. ..."

Mexico City, May 29, 2020.- BANK OF MEXICO: The General Director of Central Banking Operations, Gerardo Israel García López.- Rubric.- The General Director of Payment Systems and Market Infrastructures, Manuel Miguel Ángel Díaz Díaz.- Rubric.- The General Legal Director, Luis Urrutia Corral.- Rubric.- The General Director of Financial System Affairs, José Luis Negrín Muñoz.- Rubric.

For any inquiries regarding the content of this Circular, please contact the Central Banking Authorizations and Consultations Management, at the phones 55 5237-2308, 55 5237-2317 or 55 5237-2000 Ext. 3200.