Circular 6/2011 — Modifies Circular 2019/95

CIRCULAR 6/2011 Mexico, D.F., February 16, 2011. TO MULTIPLE BANKING INSTITUTIONS: SUBJECT: MODIFICATIONS TO CIRCULAR 2019/95

The Bank of Mexico, with the objective of promoting the sound development of the financial system; protecting the interests of the public; encouraging the more efficient use of automated teller machines (ATMs); and fostering greater penetration of financial services for the benefit of users, and attending to various requests from multiple banking institutions, considers it convenient to regulate the bases for these institutions to jointly offer services through ATM networks operated by third parties.

Therefore, based on Article 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; Articles 24 and 26 of the Bank of Mexico Law; Article 22 of the Law for Transparency and Ordering of Financial Services; Articles 48 and 52, eighth paragraph of the Credit Institutions Law; Article 4, first paragraph, Articles 8, fourth and seventh paragraphs, Article 10, first paragraph, Article 12 Bis in relation to Article 20, fraction XI, Article 14 Bis in relation to Article 17, fraction I, Article 14 Bis 1, first paragraph in relation to Article 25 Bis 1, fraction IV, of the Internal Regulations of the Bank of Mexico, which provide for its authority to issue provisions through the General Directorate of Payment Systems and Risks, the General Legal Directorate, and the General Directorate of Financial System Affairs, respectively; as well as the Sole Article of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions III, X, and XII; it has resolved to incorporate sections M.37, M.37.1, M.37.11, M.37.12, and M.37.2 into Circular 2019/95, as follows:

M.37. BASES FOR THE PROVISION OF SERVICES THROUGH ATM NETWORKS.

M.37.1 Institutions intending to jointly offer services through ATM networks with other credit institutions must do so through third parties. To this effect, in accordance with M.37.11 or M.37.12, as applicable, they must request written authorization from the Bank of Mexico through the Management of Authorizations, Inquiries, and Legal Control, located at Avenida 5 de Mayo number 2, Colonia Centro, Postal Code 06059 in Mexico City, Federal District.

M.37.11. Institutions interested in offering services through ATM networks operated by legal entities in which such institutions are or intend to be shareholders must include the following information in the respective authorization request:

a) The corporate name of the credit institution or institutions intending to participate in the legal entity; b) The amount of cash or in-kind investment that each credit institution is willing to contribute, as applicable, as well as the percentage of its shareholding; c) The terms and conditions under which the legal entity would pay or charge the credit institutions intending to be shareholders for the services provided, as applicable, as well as a description of the reference services; d) The clauses stipulating the requirements and procedures for other credit institutions to participate in the legal entity, as well as the rights reserved, as applicable, by the institutions originally participating in its formation; e) The clauses stipulating the requirements and procedures that credit institutions intending to cease participation in the legal entity must comply with; f) The draft bylaws, and g) Any other information requested by the Bank of Mexico.

M.37.12. Institutions intending to provide services through ATM networks operated by a third party other than the legal entity provided for in section M.37.11 must specify in their authorization request the legal nature of the third party that would operate the corresponding ATM network. In the respective request, they must indicate at least the equivalent information provided for in items a) through f) of section M.37.11.

Attached to the aforementioned request must be the draft contract through which such participation is intended to be formalized, as well as any other information requested by the Bank of Mexico.

M.37.2 The Bank of Mexico will grant or deny the respective authorization within a period not exceeding 30 business days counted from the date it notifies the applying institution that the request and required information are complete.

In the event that the Bank of Mexico grants authorization for the provision of services through ATM networks operated by third parties, the participating institutions must observe the following:

a) Consider the transactions made by their clients on the ATM networks as if they had been made on their own ATMs, and b) Request authorization from the Bank of Mexico through the Management of Authorizations, Inquiries, and Legal Control in case they intend to modify the terms or conditions under which the Bank of Mexico granted the corresponding authorization.

TRANSITORY SINGLE. This Circular shall enter into force on February 21, 2011.