Circular 37/2020 — Modifying Circular 4/2019

Wednesday, September 30, 2020 OFFICIAL GAZETTE

CIRCULAR 37/2020 addressed to Credit Institutions and Financial Technology Institutions, regarding the modifications to Circular 4/2019 (General Provisions Applicable to Credit Institutions and Financial Technology Institutions in Operations Conducted with Virtual Assets).

A logo appears at the margin, stating: Bank of Mexico.- "2020, Year of Leona Vicario, Meritorious Mother of the Fatherland".

CIRCULAR 37/2020

TO CREDIT INSTITUTIONS
AND FINANCIAL TECHNOLOGY INSTITUTIONS:

SUBJECT: MODIFICATIONS TO CIRCULAR 4/2019
(GENERAL PROVISIONS APPLICABLE TO CREDIT INSTITUTIONS AND FINANCIAL TECHNOLOGY INSTITUTIONS IN OPERATIONS CONDUCTED WITH VIRTUAL ASSETS).

The Bank of Mexico, through Circular 4/2019 published in the Official Gazette of the Federation on March 8, 2019, issued the General Provisions Applicable to Credit Institutions and Financial Technology Institutions in Operations Conducted with Virtual Assets (hereinafter, "Provisions"), and in accordance with the Second Transitory Provision of said Provisions, they were submitted to public consultation for a period of 60 Banking Business Days.

From the analysis of the comments received during said public consultation, it was identified that it is necessary to clarify in provision 11th of Chapter III of the Provisions, regarding the characteristics that the Institutions referred to in the Provisions must meet to carry out the contracting of third parties, that the authorization of the Board of Directors must refer to the governing body of the Institution and not to that of the third party with whom it is intended to contract.

Therefore, 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, 16, 30, 32 and 88, of the Law to Regulate Financial Technology Institutions, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 12 Bis, first paragraph in relation to 20 Quater, fraction IV, and 14 Bis, first paragraph in relation to 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant the authority to issue provisions through the General Directorate of Payment Systems and Market Infrastructures and the General Legal Directorate, respectively, as well as Second, fractions X and XVII, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, it has resolved to modify fraction II of provision 11th of the "General Provisions Applicable to Credit Institutions and Financial Technology Institutions in Operations Conducted with Virtual Assets", issued by the Bank of Mexico on March 8, 2019, to read as follows:

GENERAL PROVISIONS APPLICABLE TO CREDIT INSTITUTIONS AND FINANCIAL TECHNOLOGY INSTITUTIONS IN OPERATIONS CONDUCTED WITH VIRTUAL ASSETS

CHAPTER III

CONTRACTING OF THIRD PARTIES

"11th. Request for authorization to contract third parties.-...
...
I. ...
a) to h)...
II. Approval of the Governing Body of the Institution, which must state that:
a) and b)...
III. a) to VIII.)."

TRANSITORY

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

Mexico City, September 23, 2020.- The General Director of Payment Systems and Market Infrastructures, Manuel Miguel Ángel Díaz Díaz.- Initials.- The General Legal Director, Luis Urrutia Corral.- Initials.

For any inquiries regarding the content of this Circular, please contact the Directorate of Authorizations and Sanctions of Central Banking, at telephone numbers 55 5237-2308, 55 5237-2317 or 55 5237-2000 Ext. 3200.