Circular 6/2008 — Modifications to Circular 2019/95

"2008, Año de la Educación Física y el Deporte" CIRCULAR 6/2008 Mexico City, February 19, 2008. TO THE INSTITUTIONS OF MULTIPLE BANKING: SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95. The Bank of Mexico, based on Articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 3, fraction I, 7, fraction VII, 24 and 31 of the Bank of Mexico Law; 22 of the Law for Transparency and Ordering of Financial Services; 8th, third and fourth paragraphs, 10, 17, fraction I and 20, fraction IV, which grant the Directorate of Central Banking Regulations and the Directorate of Operational Systems and Payments, respectively, the authority to participate in the issuance of regulations, all of them from the Internal Regulations of the Bank of Mexico published in the Official Journal of the Federation on September 30, 1994, whose last modification was published in said Official Journal on April 26, 2007; with the objective of continuing to promote the proper functioning of our country's payment systems, considering that: a) It is convenient to modify the operating schedule of the SIAC-BANXICO so that these institutions can settle transfers between themselves and with this Central Bank through said payment system during a wider schedule, and b) It is necessary to establish an alternative payment settlement procedure for the operations carried out by institutions that operate with CLS Bank International, in case any contingency arises in the operation of the Interbank Electronic Payment System (SPEI). It has resolved to modify, the second paragraph of section M.72.31., as well as add section M.71.12.5; a third paragraph to section M.72.31. and Annex 29 of Circular 2019/95, to remain in the following terms:

2 M.71.1 NATIONAL CURRENCY CASH DEPOSITS AT THE BANK OF MEXICO "M.71.12.5. Institutions intending to conduct operations with CLS Bank International must authorize the Bank of Mexico so that, in the event that any contingency arises in the Interbank Electronic Payment System (SPEI), which prevents them from sending Payment Orders in favor of the aforementioned CLS Bank International or receiving payments from this entity: i) charge the Unique Account held for them, up to the amount of the payments they must settle to said entity, and ii) credit the aforementioned Unique Account with the amounts sent to them by CLS Bank International. For the purposes of what is provided in this section, institutions must grant a mandate in favor of the Bank of Mexico in accordance with Annex 29 of this Circular, signed by person(s) with authority to perform administrative acts, for which they must present to the Sub-Management of National Operations Implementation -located at Avenida 5 de Mayo number 2, mezzanine, Centro Neighborhood, Postal Code 06059, Mexico City- a simple copy certified for comparison, of the deed in which the granting of the aforementioned powers is recorded, as well as a simple copy of their official identification(s). The submission of the documentation referred to in the previous paragraph must be made at least ten banking business days in advance of the date on which they intend to initiate operations with CLS Bank International." M.72.3 TRANSFER OF FUNDS IN NATIONAL CURRENCY. "M.72.31. … Fund transfer orders related to operations conducted between institutions, as well as those conducted between them and the Bank of Mexico, must be instructed through the SIAC-BANXICO during the hours of 00:00:00 to 17:00:00, Mexico City time, and may have same-day value or next banking business day value, as indicated by the institution making the transfer. The Bank of Mexico may determine a different schedule than that indicated in the previous paragraph, which will be communicated to those institutions through the electronic medium or telecommunications channel that the Bank of Mexico itself establishes for such purpose."

3 "ANNEX 29 MODEL OF MANDATE IN FAVOR OF BANK OF MEXICO GRANTED PURSUANT TO SECTION M.71.12.5 OF CIRCULAR 2019/95 (Institution letterhead paper) Mexico City, ___ of ___________ of _____. Bank of Mexico. Operational Processing Directorate. Avenida 5 de Mayo No. 6, floor 4, Col. Centro, P.C. 06059, Mexico City. Pursuant to what is established in section M.71.12.5 of Circular 2019/95 issued by your Central Institute, in the event that any contingency arises in the Interbank Electronic Payment System (SPEI), which prevents sending Payment Orders in favor of CLS Bank International or receiving payments from this entity, (Full Name of the Institution) authorizes and instructs the Bank of Mexico to: i) make charges in the Unique Account held for us, up to the amount of the payments we must settle to CLS Bank International, in the terms indicated by us according to the Contingency Manual for Operations with CLS Bank International, and ii) credit the aforementioned Unique Account with the amounts that said entity sends to our benefit, based on the information that the latter provides to that Central Bank. The authorization and instruction referred to in this document may only be modified or revoked, through written communication addressed to that Operational Processing Directorate and presented with an advance of at least one banking business day before the date on which the modification or revocation is intended to take effect. Sincerely, (Name, signature and position of the official(s) of the institution with authority to perform administrative acts)"

4 TRANSITORY UNIQUE.- This Circular shall enter into force on February 25, 2008.