Circular 8/2020 — Provisional Measures for Cash Operations and Cash Correspondents Related to the COVID-19 Pandemic

Thursday, April 9, 2020 OFFICIAL GAZETTE 1
BANK OF MEXICO
CIRCULAR 8/2020, addressed to Credit Institutions, regarding provisional measures for operations and cash correspondents, in relation to the COVID-19 pandemic.

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

CIRCULAR 8/2020
TO CREDIT INSTITUTIONS:
SUBJECT: PROVISIONAL MEASURES FOR
OPERATIONS AND CASH CORRESPONDENTS
IN RELATION TO THE
COVID-19 PANDEMIC

The Bank of Mexico, with the purpose of continuing to promote the proper functioning of payment systems and encourage the healthy development of the financial system, as well as to provide legal certainty to credit institutions regarding compliance with their obligations in accordance with the Cash Operations Circular, given the circumstances arising from the COVID-19 pandemic, has resolved to take the following provisional measures:

i. The Bank of Mexico will refrain from initiating administrative sanction procedures for infractions committed during the period between March 19, 2020, and April 30, 2020, both inclusive, resulting from the failure by credit institutions to deliver suspected counterfeit pieces within twenty banking days, as well as in registering the result of the verification of claims in the Currency Authentication System (SAM), within five banking days, as referred to in items II.VII.2 and II.VIII.2.4 of the Cash Operations Circular, respectively.

Likewise, the publication of the result of the analysis of said pieces by the Bank of Mexico may be delayed beyond what is established in current regulations.

ii. The deadline for credit institutions to deliver to this Central Institute information on Value Transport Companies as referred to in item II.II.7 and Annex 28 of the Cash Operations Circular is extended. Credit institutions must deliver this information to the Bank of Mexico no later than May 31, 2020.

iii. The operation of cash correspondents with Users is limited to two days per week; that is, Tuesdays and Thursdays, until further notice. In the event that it is necessary to increase the number of operating days, the Bank of Mexico will inform the corresponding cash correspondent individually.

This Circular is issued based on the provisions of Articles 28, sixth and seventh paragraphs, of the Political Constitution of the United Mexican States; 2, 3, fraction I, 4, 24, first and second paragraphs, and 25 of the Bank of Mexico Law; 48 and 48 Bis 1 of the Credit Institutions Law; 1, 4, first paragraph, 8, fourth and eighth paragraphs, 10, first paragraph, 14 Bis, first paragraph, in relation to 17, fraction I, and 16, first paragraph, in relation to 16 Bis, fraction II, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Legal Directorate and the General Issuance Directorate, respectively; as well as Second, fractions III and X, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico.

TRANSITORY
SINGLE. This Circular will enter into force the day following its publication in the Official Gazette of the Federation.

Mexico City, April 2, 2020.- BANK OF MEXICO: The General Legal Director, Luis Urrutia Corral.- Signature.- The General Issuance Director, Alejandro Alegre Rabiela.- Signature.

For any inquiries regarding the content of this Circular, the Bank of Mexico is available through the Central Bank Authorizations and Sanctions Directorate at telephone (55) 5237-2000 extension 3200.