Circular 3/2015 — Modifications to Circular 3/2012 (Transfers to SPEI)

Tuesday, March 3, 2015 OFFICIAL GAZETTE (First Section)

BANK OF MEXICO

CIRCULAR 3/2015 addressed to Credit Institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development, regarding Modifications to Circular 3/2012 (transfers to SPEI).

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

CIRCULAR 3/2015

TO CREDIT INSTITUTIONS AND TO THE NATIONAL FINANCIAL INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT:

SUBJECT: MODIFICATIONS TO CIRCULAR 3/2012 (TRANSFERS TO SPEI).

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, and in consideration of the adjustments made to the regulation in order to facilitate the use of mobile devices in processing operations processed through the Interbank Electronic Payment System (SPEI), according to which participating credit institutions in said payment system would need to have sufficient liquidity to allow them to carry out the timely processing of said operations during the extended operating hours of that system, has determined to establish a mechanism that allows said institutions to obtain the liquidity they require, through transfers of funds that they carry out from their corresponding Single Account held by the Bank of Mexico to the respective account they maintain in the SPEI.

For the above reason, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 24 of the Bank of Mexico Law, 4, first paragraph, 8, paragraphs fourth and seventh, 10, first paragraph, 14 Bis, in relation to 17, fraction I, 19 Bis, fraction V, and 20, fraction XI, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Direction, the National Operations Direction and the Payment Systems Direction, respectively, as well as Second, fractions VI, VIII and X, of the Agreement on the Attachment of the Administrative Units of the Bank of Mexico, it has resolved to modify the Index, as well as articles 122, 123 and 125, and add the definition of “SPEI Account” in article 2, an article 122 Bis, as well as Annex 27, to the “Provisions applicable to the operations of Credit Institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development”, contained in Circular 3/2012, to remain in the following terms:

“PROVISIONS APPLICABLE TO THE OPERATIONS OF CREDIT INSTITUTIONS AND OF THE NATIONAL FINANCIAL INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT”

INDEX

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TITLE THREE

OPERATIONS WITH THE BANK OF MEXICO

CHAPTER II

OPERATIONS IN ACCOUNTS AT THE BANK OF MEXICO

Section I Operations in national currency

“Article 122 Bis.- Transfers to SPEI”

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ANNEXES

...

“Annex 27 Model of communication by which Institutions authorize and instruct the Bank of Mexico to carry out transfers from their Single Account to their SPEI Account”

Definitions

(First Section) OFFICIAL GAZETTE Tuesday, March 3, 2015

“Article 2nd.- For brevity, in singular or plural, in these Provisions it will be understood by:

...

SPEI Account: that which is denominated in national currency that each Institution maintains in the SPEI in terms of what is provided by Circular 17/2010 of the Bank of Mexico.

...”

Transfer of funds

“Article 122.-...

The operating hours of the SIAC-BANXICO will begin at 19:00 hours of each Banking Business Day and end at 18:25 of the following Banking Business Day. The value date of all operations carried out in the referred schedule will correspond to the Banking Business Day in which said schedule concludes.

Transfer orders of funds relative to operations celebrated between Institutions, as well as those celebrated between these and the Bank of Mexico, may be instructed through the SIAC-BANXICO from the start of the operating schedule indicated in the previous paragraph and until 16:30 hours of the following Banking Business Day.

The orders referred to in this paragraph may have same-day value date or next-day value date, as indicated in the respective order by the Institution instructing the transfer.

The Bank of Mexico may determine different schedules than those indicated in the two previous paragraphs, which will be made known to Institutions through the electronic or telecommunications medium that the Bank of Mexico itself establishes for such effect.”

“Transfers to SPEI

Article 122 Bis.- Institutions that are participants in the SPEI may request the transfer of resources from their Single Account to their SPEI Account, in accordance with one of the following alternatives:

I. Through transfer orders that they send through the SIAC-BANXICO from 19:00 hours of each Banking Business Day and until 18:00:00 hours of the following Banking Business Day. Such orders will have as value date the Banking Business Day in which said schedule concludes.

Without prejudice to the foregoing, the Bank of Mexico may determine different schedules than those indicated above, which it will make known to Institutions through the electronic or telecommunications medium that the Bank of Mexico itself establishes for such effect.

II. Through transfer orders sent by the Bank of Mexico so that each Banking Business Day, at the start of SPEI operations, resources are transferred from the Institution's Single Account to its SPEI Account, based on the payment capacity of the Institution in question, which the Bank of Mexico has determined on the previous Banking Business Day. The referred payment capacity will be equivalent to the positive balance resulting from subtracting from the amount of the guarantee that the Institution itself may grant in terms of article 115 of these Provisions the following concepts:

(i) the amount of the overdraft that, if any, the Institution has in its Single Account at the moment of the start of SPEI operations; (ii) the amount of the obligations owed by the Institution in question and in favor of the Bank of Mexico to be paid at the start of operations of the SIAC-BANXICO on the Banking Business Day following that in which the resources are sent in terms of this fraction II, and (iii) the reserved amount that, if any, the Institution itself determines through the SIAC-BANXICO.

The transfer referred to in the previous paragraph will be registered at the start of operations of both the SIAC-BANXICO and the SPEI, in the respective Single Account and SPEI Account of the Institution in question, on the Banking Business Day following that in which the payment capacity of the Institution in question is determined in accordance with what is provided in the previous paragraph.”

Interbank transaction schedule

Tuesday, March 3, 2015 OFFICIAL GAZETTE (First Section)

“Article 123.- The Bank of Mexico will execute between 18:05:00 and 18:25:00 hours the orders for transfer of funds between the Single Accounts held for Institutions, provided that such transfers originate from credit operations that are celebrated exclusively and directly between the Institutions themselves.

...

...”

Request

“Article 125.-...

Without prejudice to the foregoing, for the purposes of what is provided in article 122 Bis, fraction II, of these Provisions, the Institution in question must send to the Bank of Mexico a written communication granting its corresponding authorization to the Bank itself, drafted in terms of Annex 27 of these Provisions, which must be signed by those who have the authority to exercise acts of dominion on behalf of the Institution. For this effect, Institutions must present to the Management of Operation and Business Continuity of the Payment Systems certified and simple copies of the notarial testimony in which the authority of the person intending to sign it is recorded, as well as a simple copy of their official identification.

The documentation referred to in the immediate previous paragraph must be presented with at least five Banking Business Days in advance to the date on which the Institution in question requests for the first time the transfer of resources in accordance with the aforementioned article 122 Bis, fraction II, of these Provisions.”

“ANNEX 27

Model of communication by which Institutions authorize and instruct the Bank of Mexico to carry out transfers from their Single Account to their SPEI Account

(PAPER WITH LETTERHEAD OF THE CREDIT INSTITUTION)

“Mexico, D.F., on ___ of ___________ of __.

BANK OF MEXICO

Management of Operation and Business Continuity of the Payment Systems

Avenida 5 de Mayo No. 6

Col. Centro, C.P. 06059, Mexico, D.F.

Present.

(The full name of the Credit Institution) hereby authorizes and instructs the Bank of Mexico so that at the opening of operations of each Banking Business Day of the Interbank Electronic Payment System (SPEI), it carries out the charge in the Single Account held for us and the subsequent credit in our SPEI Account up to the amounts that correspond, due to the transfers provided in article 122 Bis, fraction II, of the “Provisions applicable to the operations of credit institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development”.

The authorization and instruction subject of this present, may only be modified or revoked through communication with autograph signature addressed to the Management of Operation and Business Continuity of the Payment Systems, and that this is delivered to that Central Bank with, at least, one Banking Business Day in advance to the date on which the respective modification or revocation is intended to take effect.

Sincerely,

(Name, signature and position of the official or officials of the institution with authority to exercise acts of dominion)”

TRANSITORY PROVISIONS

FIRST.- This Circular will enter into force on March 6, 2015, except for what is provided in the following transitory article.

SECOND.- From the Banking Business Day following the publication of this Circular in the Official Gazette of the Federation until the date of its entry into force, Institutions may present to the Management of Operation and Business Continuity of the Payment Systems of the Bank of Mexico the communication and documentation referred to in article 125 of the Provisions, without the deadline provided in the third paragraph of said article being applicable to them.

(First Section) OFFICIAL GAZETTE Tuesday, March 3, 2015

Mexico, Federal District, on February 27, 2015.- The General Legal Director, Luis Urrutia Corral.- Initials.- The Director of National Operations, Alfredo Sordo Janeiro.- Initials.- The Director of Payment Systems, Manuel Miguel Ángel Díaz Díaz.- Initials.

For any consultation regarding the content of this Circular, please contact the Management of Authorizations, Consultations and Legal Control, at the phones (55) 5237-2308, (55) 5237-2317 or (55) 5237-2000 Ext. 3200.