RegAlertRule · BCRA · 26 Jan 2017 · A 6167
Circular A 6167: Disciplinary Regime of the Central Bank of the Argentine Republic under Laws 21.526 and 25.065
The Central Bank of the Argentine Republic approves the new Disciplinary Regime under Laws 21.526 and 25.065, replacing previous summary sanctioning norms. It amends specific provisions across multiple regulatory frameworks—including accounting veracity, credit risk fragmentation, and cooperative credit boxes—to explicitly apply this new disciplinary regime for non-compliance. The rules establish immediate application to all pending summary proceedings and repeal Communication A 5838 and specific points of Communication A 5323.
"2017 - YEAR OF RENEWABLE ENERGIES COMMUNICATION "A" 6167 26/01/2017 TO FINANCIAL ENTITIES, TO EXCHANGE HOUSES, AGENCIES AND OFFICES, TO NON-FINANCIAL ENTITIES ISSUING CREDIT CARDS, TO ADMINISTRATORS OF CREDIT PORTFOLIOS OF PREVIOUS FINANCIAL ENTITIES, TO TRUSTEES OF FINANCIAL TRUSTS INCLUDED IN THE FINANCIAL ENTITIES LAW, TO ELECTRONIC CLEARING HOUSES, TO REPRESENTATIVES OF FOREIGN FINANCIAL ENTITIES NOT AUTHORIZED TO OPERATE IN THE COUNTRY, TO NON-FINANCIAL ENTITIES ISSUING PURCHASE CARDS, TO VALUABLES TRANSPORTERS: Ref.: Circular REMON 1 - 919 OPRAC 1 - 867 LISOL 1 - 717 RUNOR 1 - 1262 "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments."
We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:
"1. Approve the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments", which replace the norms on "Processing and sanctioning in the summaries provided for in article 41 of Law 21.526", which are attached as an annex and form part of this communication. 2. Replace point 3. of the norms on "Veracity of accounting registrations" with the following: "3. Non-compliance. In case of non-compliance with these provisions, the provisions of the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall apply." 3. Substitute point 2.8. of the norms on "Minimum provisions for uncollectible risk" with the following:
-2- "2.8. Non-compliance in the accounting of provisions required by the Superintendence of Financial and Exchange Entities. The provisions of the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall apply." 4. Replace points 4.9. and 4.10. of the norms on "Payment of social security benefits on behalf of the National Social Security Administration (ANSES)" with the following: "4.9. Other obligations. 4.9.1. Restitution of unpaid OPP vouchers. Entities must remit the unpaid OPP vouchers, between the hours of 10 and 16, to the ANSES Payment Operations Area, located at Av. Córdoba 720, 3rd floor, of the Autonomous City of Buenos Aires, within five (5) business days following the deadline of the period to which they correspond. 4.9.2. Custody and remittance of OPP or OPE rendered as paid. It shall be the responsibility of the participating entities to keep custody for the legally established period of the original payment vouchers of the OPP or OPE paid to the beneficiaries. The participating entities, upon formal request to the "accountability holders", must supply to ANSES the original vouchers of payments made, within fifteen (15) business days of being notified of the request. In case of non-compliance with the aforementioned request, the provisions of the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall apply. 4.10. Penalties for non-compliance. In both cases of submissions accepted during a late submission period and those of falsification of the sworn statement, the provisions of the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall apply." 5. Substitute point 1.2. of the norms on "Operations with common investment funds" with the following: "1.2. Non-compliance. The provisions of the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall apply."
-3- 6. Replace in the norms on "Credit management" points 1.2.2., 1.4.8.2., 1.4.10. and 1.5.7. with the following: "1.2.2. Covered operations. The preceding provisions apply to all credit operations, even those carried out between financial entities and with the public sector, and their non-compliance may give rise to the application of the sanctions provided for in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"."
"1.4.8.2. Unrelated client. CENTRAL BANK OF THE ARGENTINE REPUBLIC SWORN STATEMENT ON THE STATUS OF THE DEBTOR REGARDING THE LINKAGE NORMS ESTABLISHED BY THE C.B.A.R. UNRELATED CLIENT ENTITY: The undersigned (2), declares under oath that the data provided in this document are correct, complete and a faithful expression of the truth and that he/she is not/the signature representing him/her is not (1) covered (1) by the linkage guidelines provided for in points 2.2.1., 2.2.2. and 2.2.3. of the norms on "Fragmentation of credit risk". Likewise, he/she declares that he/she is aware that, in case of falsity of the content of this submission, the sanction applicable will be the one corresponding according to the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments", without prejudice to the sanctions provided for in article 296 of the Penal Code. Furthermore, he/she assumes the commitment to inform any modification that occurs in this regard, within five (5) calendar days of occurrence, by submitting a new sworn statement which will also integrate, even if no facts implying modification of the status are verified, informing the situation on 11.30 of each year, with the same deadline as previously provided. Date: Signature: Document: Type (3) No. Country and Issuing Authority (4): Invoked status (5): Name of the legal entity (6): CUIT/CUIL (1) No.: We certify that the preceding signature matches the one registered in our books/was placed in our presence (1). (Seal of the entity and signatures of two authorized officials) Observations: (1) Strike out what does not apply. (2) Include the first and last name of the client, in the case of natural persons, even if an attorney signs on their behalf. (3) Indicate type of identity document, according to the norms on "Valid identification documents". (4) Include only in the case of foreigners who do not have residence in the country. (5) Indicate holder, legal representative, attorney. When it concerns an attorney, the power granted must be broad and general and be valid on the date of signing this statement. (6) Include only in cases where the signer acts as attorney or legal representative of a legal entity. This statement must be integrated in duplicate, the one intervened by the financial entity will serve for the borrower as proof of receipt of this statement. On the back, transcribe points 2.2.1., 2.2.2. and 2.2.3. of the norms on "Fragmentation of credit risk" and article 41 of the Financial Entities Law."
-4- "1.4.10. Falsity of the statement. When the Superintendence of Financial and Exchange Entities determines falsity in the sworn statement submitted, which leads to the entity not informing the deotor as a related client, without prejudice to the application of the treatment established in point 1.4.9., the debtor and the entity -jointly and severally- shall be subject to the fine according to what is provided in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"." "1.5.7. Non-compliance. The provisions of the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall apply." 7. Substitute in the norms on "Fragmentation of credit risk" points 7.3.5., 7.4.1.3. and 7.5.1. with the following: "7.3.5. Initiation of summary proceedings. Summary proceedings shall be initiated in accordance with what is provided in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"." "7.4.1.3. The failure to submit the plan within the established terms, its rejection or non-compliance, shall give rise to the application of the provisions provided in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"." "7.5.1. Initiation of summary proceedings. Without prejudice to the application of the norms contained in points 7.3. and 7.4., non-compliance with the maximum limits established for related clients, and/or the actions or tricks to distort or disguise the true nature or scope of the operations carried out shall give rise to the application of the provisions provided in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"." 8. Replace point 5.3. of the norms on "Minimum cash" with the following: "5.3. Sanctions. The verification of infractions shall determine the application of what is provided in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"." 9. Replace point 9.12. of the norms on "Cooperative credit boxes (Law 26.173)" with the following:
-5- "9.12. Non-compliance in the accounting of provisions required by the Superintendence of Financial and Exchange Entities. Non-compliance with the accounting of provisions in the terms provided in points 9.10.1. and 9.10.2. shall be subject to the provisions provided in the norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments"." 10. Repeal Communication "A" 5838. 11. Repeal points 1. to 5. of Communication "A" 5323. 12. Provide that Section 3. "Payment of fine sanctions" of the "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" shall be applicable to fines imposed due to Law on the Criminal Exchange Regime No. 19.359, with the exception of those that have been applied for the commission of infractions to article 1° subsections a) and/or b). 13. Provide that the norms approved in this communication shall be applicable immediately to all summary proceedings in progress." Finally, we inform you that subsequently the sheets that, in replacement of those previously provided, will be distributed, which will need to be incorporated into the following regulations: "Veracity of accounting registrations", "Minimum provisions for uncollectible risk", "Payment of social security benefits on behalf of the National Social Security Administration (ANSES)", "Operations with common investment funds", "Credit management", "Fragmentation of credit risk", "Minimum cash" and "Cooperative credit boxes (Law 26.173)". We salute you respectfully. CENTRAL BANK OF THE ARGENTINE REPUBLIC Rubén Darío Narduzzi Nestor Daniel Robledo Main Manager of Litigious Affairs General Manager of Compliance and Control ANNEX
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- Index - Section 1. Procedure for the processing of summaries provided for in article 41 of Law 21.526. Section 2. Resolution stage. Sanctions. Section 3. Payment of fine sanctions. Section 4. Publicity of resolutions. Section 5. Recourse channels. Section 6. Summaries and sanctions to financial entities issuing and to non-financial issuers of credit cards. Section 7. Electronic Notification System (SNE). Section 8. Other provisions. Section 9. Catalog of infractions. C.B.A.R. Norms on "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments" Annex to Comm. "A" 6167
-2- Section 1. Procedure for the processing of summaries provided for in article 41 of Law 21.526. 1.1. Scope of application. The present procedure applies to the summaries that the Central Bank of the Argentine Republic (C.B.A.R.) processes in accordance with article 41 of Law 21.526 on Financial Entities (LEF) to: 1.1.1. Legal and natural persons subject to the scope of application of the aforementioned law and/or covered according to its provisions, including those regarding which it has been decided to extend its terms, in accordance with article 3° of the LEF. 1.1.2. Natural persons potentially responsible for the transgressions that are the subject of the summaries. 1.1.3. Offenders of the norms of articles 19 and 38 of the LEF. 1.2. Initiation and processing of the summary. 1.2.1. The summary is initiated by resolution of the Superintendent of Financial and Exchange Entities. 1.2.2. The adjudication of presumed infractions of minimum gravity shall proceed in a summary manner; once the formal opening of the summary is ordered, exceptions of prior and special pronouncement shall not be admissible; after the notification of charges, the deadline to present defenses shall be five (5) days; at this procedural stage, all documentary evidence must be attached; testimonial evidence shall only be admissible for those cases in which documentary evidence could not be obtained by other means. These are the only admissible evidence in this type of process. Once the defense is produced, the deadline expires or the relevant evidence is produced, the Superintendent of Financial and Exchange Entities may adopt a resolution, without further procedure. 1.2.3. In other cases, the SEFyC shall notify the accused of the opening of the summary at the address indicated in point 1.4. The deadline to view the file, present defenses and offer evidence shall be ten (10) days counted from the day following the relevant notification. The conferred view must be taken in the premises of the C.B.A.R. In cases where the accused is domiciled outside a radius of 100 kilometers from the Autonomous City of Buenos Aires, the aforementioned ten (10) day deadline shall be extended at the rate of ONE (1) day for every TWO HUNDRED (200) kilometers or fraction that does not fall below ONE HUNDRED (100) kilometers. 1.3. Attorneys and authorized representatives. 1.3.1. Natural and legal persons may designate attorneys to act and represent them in all stages of the summary. Attorneys must prove their representation from the first management they carry out on behalf of their principals, through a copy of the power of attorney executed in legal form, or a private instrument with signatures certified by a public notary, which shall be attached to the proceedings; or through a record in which the accused grant sufficient mandate with all the practical powers to exercise the full processing of the file, drawn up in
-3- front of the acting official of the SEFyC. Once the conferred representation is proven or materialized, citations and notifications, even those of final resolutions, produce the same effects as if they were made to the grantor. The accused and/or their attorneys may designate authorized representatives to inspect the file and/or withdraw copies, in which case the party shall be notified of the proceedings as if they were the authorizers. 1.3.2. The designation of an attorney does not relieve the accused of their appearance before the SEFyC, whenever the latter deems it necessary. 1.4. Domicile. 1.4.1. Notifications shall be sent to the domicile that the accused have constituted before the SEFyC through Formula 1113 A and/or its equivalent in the respective electronic submission medium; in its absence, they shall be carried out at the domicile that is reasonably appropriate. 1.4.2. In the first act that the accused or their attorney has in the summary, they must discover their real domicile, attach a copy of their ID and constitute an electronic domicile, as established in Section 7. 1.4.3. If the domicile of the accused is unknown in any way, notifications giving notice of the resolution shall be made by edict published in the Official Gazette of the Argentine Republic for three (3) days. 1.5. Notifications. Notifications may be made by any means that provides certainty of the date of receipt of the instrument and, if applicable, the content of the closed envelope if it is used. It may be carried out: a) By direct access of the interested party, their attorney or legal representative or authorized person to the file, leaving an express record and prior justification of the identity of the notified person; a full copy of the act shall be certified, if requested. b) By spontaneous presentation of the interested party, their attorney or legal representative, from which it results that they have reliable knowledge of the respective act. c) By summons, which shall be processed similarly to what is provided for in arts. 140 and 141 of the Civil and Commercial Procedural Code of the Nation. d) By telegram with delivery notice. e) By certified letter with return receipt; in this case the letter and attached documents must be exhibited in an open envelope to the authorized postal agent, before dispatch, who shall stamp them together with the copies that will be added to the file. f) By registered letter.
g) By the means indicated by the postal authority, through its concessionaires, in accordance with the regulations it issues. h) By notification to the electronic domicile, as established in Section 7. 1.6. Deadlines. 1.6.1. All deadlines are calculated in business banking days in effect in the Autonomous City of Buenos Aires. Deadlines begin to run from 0:00 hours on the day following the notification and expire at 24:00 hours on the day of their expiration. However, any document delivered within the first 2 hours of the banking hours of the next business day after the deadline expired shall be considered validly submitted. To establish due compliance with deadlines, the date and time of entry of any submission in the records of the C.B.A.R. Reception Desk shall be taken into account. 1.6.2. All deadlines shall be peremptory and non-extendable. 1.6.3. Summer and winter administrative holidays shall apply to the processing of summaries in coincidence with the judicial holidays established by the Supreme Court of Justice of the Nation. This, without prejudice to the attention of urgent cases that warrant the activation of deadlines. 1.7. Evidence. Argument. 1.7.1. At the moment of presenting defenses and alleging relevant defenses, all evidence to be produced must be offered and the documentary evidence available must be attached. If this is not available to the accused, it must be individualized, indicating its content, location and the person in whose possession it is. The SEFyC shall order the production of the evidence that proves relevant and shall reject, with justification, the evidence deemed irrelevant. The resolution denying evidence shall be appealable only on the occasion of the appeals provided for in article 42 of the LEF. The production of admitted evidence must be carried out within a period of fifteen (15) days, as determined by the SEFyC according to the circumstances inherent to the processing of the summary. During the evidence period, resolutions shall be tacitly notified, Tuesdays and Fridays or the next business day, if any of them is a holiday, shall be considered as viewing days. Testimonial evidence must concern concrete facts, clearly individualized and disputed in the proceedings, its processing shall be the responsibility of the offeror and its production must be sought within the agreed term. Letters shall be signed, stamped and processed by the attorney representing the accused with a transcription of the resolution ordering them and fixing the deadline for their submission. When professionals deviate from what is established in the order or from legal forms, corresponding measures shall be adopted to make their disciplinary responsibility effective. If the public office or private entity does not remit the report within the deadline fixed for answering, the evidence requested shall be considered withdrawn without any processing, if within the third day after the expiration it does not request its repetition. 1.7.2. When the offered evidence includes witness testimony, at the moment of presenting defenses, the list or questionnaire according to which the offered witnesses are to be interrogated must be attached. The number of witnesses must not exceed two per fact to be proven nor twenty in total. The offering of witnesses must be made with expression of their names, profession and updated domicile, their appearance in all cases being the responsibility of the offeror. The witness shall be considered withdrawn without any processing if the reported data do not allow their individualization or if the relevant interrogation is not attached at the time of presenting defenses, or if they do not appear without justified cause and duly proven at the time of the first scheduled hearing or its supplementary. 1.7.3. Expert evidence shall be admitted when, in the opinion of the Institution, there are doubts regarding the authenticity of the attached documentary evidence or any other type of issue to be resolved by this means of proof. 1.7.4. Once all evidence has been produced, the order closing the corresponding period shall be issued, which shall be notified to the accused, so that within the deadline of 10 (ten) days they may present arguments on the evidence offered and produced during the processing of the summary. 1.8. Exceptions. The exceptions raised by the accused are decided in the final resolution, unless by their nature it is necessary to consider and resolve them beforehand. These resolutions are adopted by the Superintendent of Financial and Exchange Entities. In case the exception is rejected before the final resolution, that decision shall be appealable on the occasion of the appeals raised in accordance with article 42 of the LEF. 1.9. New charges or modification of charges. When from the summary activity or inspection or from any other preventive area the existence of other infractions arises that, due to their characteristics, have sufficient entity to justify the formulation of imputations different from those already made or a sensible aggravation of these, it shall proceed, in the manner provided for in point 1.2., to incorporate them into the summary as an expansion of charges or modification of the already summarized ones or to instruct a new summary by separate file.
-6- If incorporated into the ongoing inquiry, if the investigated party or parties have already reviewed the previous charges, a new review of the added or modified charges will be granted, according to the procedure regulated by these norms.
1.10. Final Report on Proceedings. Draft Resolution. Notifications. Upon receipt of the defenses, production of the relevant evidence, and completion of all necessary and appropriate diligence and proceedings to gather records and elements of judgment, the SEFyC through the Financial Contencious Affairs Management will produce the Draft Resolution containing the conclusions resulting from the proceedings. All notifications will be made by one of the means provided for in point 1.5. to the address corresponding as indicated in point 1.4.
Section 2. Resolution Instance. Sanctions. The Superintendent of Financial and Exchange Entities will issue the resolution implying the conclusion of the inquiry, which will be notified to the investigated parties or their representatives, if applicable. Once the inquiry is opened, if its filing is ordered before the issuance of the final resolution -for the corresponding reasons- such resolution must also be issued by the Superintendent of Financial and Exchange Entities, keeping in mind that it is a form of termination of the process.
2.1. Classification of infractions according to their magnitude. Infractions are classified as very high, high, medium, low, and minimum gravity infractions.
2.1.1. The catalog of infractions provided in Section 9. contains an indicative and non-exhaustive classification of the main very high, high, medium, and low gravity infractions. Very high, high, medium, and low gravity infractions will also be considered, as appropriate, those non-compliances not expressly mentioned in that section and which can be classified as such according to their magnitude and impact on the financial system.
2.1.2. Minimum gravity infractions constitute non-compliances that do not constitute very high, high, medium, or low gravity infractions.
2.2. Sanctions.
2.2.1. Legal Entities.
2.2.1.1. For the commission of infractions, the following sanctions will be imposed on financial entities, exchange entities, and other regulated and unregulated legal entities by the BCRA:
-7- a) Very high gravity infractions: fines of up to 800 Sanctioning Units. b) High gravity infractions: fines of up to 300 Sanctioning Units. c) Medium gravity infractions: warning or reprimand or fines of up to 80 Sanctioning Units. d) Low gravity infractions: warning or reprimand or fines of up to 20 Sanctioning Units. e) Minimum gravity infractions: warning or reprimand, except if they are repeated, in which case the second and subsequent minimum gravity infractions will be considered as low gravity, without prejudice to what is provided in point 2.5. for cases of recidivism.
2.2.1.2. The Infractions Catalog of Section 9. establishes the maximum number of Sanctioning Units applicable to each of the infractions detailed therein according to the type of entity or subject reached by the BCRA's sanctioning power. For these purposes, two groups of entities and subjects reached by the BCRA's sanctioning power are distinguished in the table. Group A is composed of financial entities, their external auditors, representations of foreign financial entities, and other unregulated subjects, and Group B is composed of exchange entities, their external auditors, and other subjects reached.
2.2.1.3. In cases where the benefits derived from the infraction can be quantified or estimated, fines between 1.5 and 5 times the amount of said benefits will be imposed, provided they were higher than the fines resulting from applying the scale provided in point 2.2.1.1.
2.2.1.4. In the case of very high and high gravity infractions, the Board of Directors may, at the request of the Superintendent of Financial and Exchange Entities, additionally order the revocation of the authorization to operate of subjects authorized by the BCRA.
2.2.2. Natural Persons.
2.2.2.1. Regardless of the sanction that may correspond to be imposed on the infringing legal entity, the sanctions provided for in points 2.1. to 2.3. will be imposed on natural persons who are responsible for action or omission of the infractions. In the case of low and minimum gravity infractions, natural persons can only be sanctioned in cases that evidence an active or passive policy of non-compliance or in cases of repeated infractions or recidivism.
-8- 2.2.2.2. In the case of very high gravity infractions, the sanction of disqualification of natural persons will additionally be ordered in accordance with article 41, item 5° of the LEF and article 5° of Law 18,924, permanently or temporarily, in the latter case for a period not exceeding six (6) years. Disqualification of natural persons sanctioned for the commission of very high gravity infractions may only be exempted for duly justified reasons.
2.2.2.3. In the case of high and medium gravity infractions, the sanction of disqualification of natural persons may additionally be ordered in accordance with article 41, item 5° of the LEF and article 5° of Law 18,924, permanently or temporarily, in the latter case for a period not exceeding six (6) years.
2.3. Graduation of fine sanctions. Without prejudice to other circumstances that may result from the consideration of each case in particular, for the purpose of determining the amount of fine sanctions within the corresponding scale, in the conclusion report of the BCRA's preventive areas suggesting the opening of the summary procedure, the infraction will be individualized according to the catalog of Section 9. or, if applicable, a reasoned explanation of the qualification of an uncataloged regulatory non-compliance or the similarity of the conduct with one of the infractions provided therein will be provided. A reasoned and merely provisional score from 1 to 5 of the infraction will also be made, taking into consideration the weighting factors contemplated in the following sections 2.3.1. and 2.3.2.
2.3.1. Weighting factors contemplated in article 41 of the LEF.
2.3.1.1. Magnitude of the infraction. For these purposes, the following will be taken into account: (i) quantity and total amount of the infringing operations -if they are facts susceptible to monetary appreciation; (ii) quantity of infringing charges; (iii) the relevance of the violated norms within the system of norms regulating the activity; (iv) the duration of the infringing period and (v) the impact on the entity and/or the financial system.
2.3.1.2. Damage caused to third parties. For these purposes, among other elements denoting undue economic detriment, the monetary sums that for any concept, within the characteristics of the infringing conduct, the investigated party failed to pay to this Institution or to the natural or legal persons who had a relationship with the investigated entity will be taken into account.
2.3.1.3. Benefit generated for the infringer. Attention will be paid to the verification of the benefit obtained due to the configuration of the infraction, both for the investigated entity and for the natural persons responsible for the transgression or for the natural and/or legal persons linked to them according to the BCRA's norms, determining the monetary amount of said benefit in each particular case.
2.3.1.4. Operational volume of the infringer. Its measurement is reserved for fixing the sanction in inquiries ordered upon detecting the exercise of unauthorized financial intermediation.
2.3.1.5. Computable Patrimonial Responsibility (RPC) of the entity. For the purpose of determining the fine, the RPC reported by the investigated entity to this Institution at the time the sanction is graduated or the highest declared during the entire period in which the infringing facts occurred, whichever is greater, may be considered.
2.3.2. Other weighting factors.
2.3.2.1. Mitigating factors: a) Recognition of the infringing conduct, cooperation, and adoption of corrective measures before or after the opening of the inquiry. b) Clear demonstration of the proper functioning of internal controls. c) Payment of charges in a timely and proper manner. d) Detection and reporting to the BCRA by the investigated party of the non-compliance and immediate remediation thereof.
2.3.2.2. Aggravating factors: a) Commission with deliberate knowledge or through the use of tricks intended to conceal the non-compliance. b) Prior warnings from the BCRA and other antecedents known to the investigated party not computable as recidivism. c) Continuation of the infraction after being warned by the BCRA.
2.3.3. Regarding natural persons, the time period of action within the entity relative to the total infringing period, if they do not coincide, as well as the degree of intervention in the investigated facts, will also be taken into account.
2.3.4. The provisional score made by the preventive area regarding each infraction must be confirmed or rectified in the final resolution of the inquiry considering the defenses and evidence produced in the respective stage, facilitating the application of fines according to the following detail:
-10- Score Cases where the benefit derived from the infraction cannot be quantified Cases where the benefit derived from the infraction can be quantified () 1 Up to 20% of the applicable scale 1.5 times the amount of the benefit 2 Between 21% and 40% of the applicable scale Between 1.5 and 2 times the amount of the benefit 3 Between 41% and 60% of the applicable scale Between 2 and 3 times the amount of the benefit 4 Between 61% and 80% of the applicable scale Between 3 and 4 times the amount of the benefit 5 Between 81% and 100% of the applicable scale Between 4 and 5 times the amount of the benefit () When it is appropriate to apply this criterion according to what is provided in point 2.2.1.3.
2.4. Limits
2.4.1. Fines imposed on financial entities when the benefits derived from the infraction cannot be quantified may not exceed certain percentages of the entity's RPC, taking the highest between the infringing period and the last available at the time the sanction is adopted, according to the gravity of the infraction and according to the following detail: Magnitude of the infraction Percentage of the RPC that the fine may not exceed Very High 80% High 60% Medium 40% Low 20%
2.4.2. Fines imposed on exchange entities when the benefits derived from the infraction cannot be quantified, regardless of the class and category of the entity and the gravity of the infraction, may not exceed 80% of the RPC required for exchange houses of category I of the regulations on "Exchange Houses, Agencies, and Offices".
2.4.3. The fine will not be subject to the limits mentioned in the preceding points 2.4.1. and 2.4.2. when a significant decrease in the RPC of the financial or exchange entity, due to causes directly attributable to it, coincided with the beginning or development of the infringing periods.
2.4.4. Fines imposed on legal entities not regulated by the BCRA may not exceed 80% of their net worth at the time the sanction is applied, except for marginal operations where this limit will not apply.
2.4.5. Fines imposed on natural persons considered jointly may not exceed:
-11- a) in very high gravity infractions, 3 times the amount of the fine imposed on the legal entity; b) in high gravity infractions, 2 times the amount of the fine imposed on the legal entity; and c) in medium and low gravity infractions, 1 time the amount of the fine imposed on the legal entity.
2.4.6. In addition, each of the fines imposed on natural persons may not exceed the amount of the fine imposed on the legal entity.
2.5. Recidivism
2.5.1. Those sanctioned by a final resolution who commit new infractions within the 5-year period following said decision will have an increase of up to 40% of the fines imposed on them. In the case of second recidivism, the fines to be applied may be increased by up to 100%.
2.5.2. The application of increases for recidivism is not covered by the limits of point 2.4.
2.6. Plurality of Charges When more than one infraction has been imputed for the same fact or conduct, the scale corresponding to the most serious non-compliance will be applied, with the rest of the non-compliances being subsumed in the most serious one, without prejudice to their weighting as aggravating factors under point 2.3.1.1. In addition, when more than one infraction has been imputed in the same inquiry regarding different facts or conduct, a sanction will be applied for each of them, but the fine sanctions may not jointly exceed the limits provided in point 2.4. for very high gravity infractions, regardless of the magnitude of each of them.
Section 3. Payment of Fine Sanctions.
3.1. Form and Deadline for Payment of Fine Sanctions. Execution. When a fine sanction is imposed, the amount must be paid to the BCRA in the account designated for this purpose within five (5) business days following the date of notification of the resolution, under the threat of pursuing its collection through the procedure provided for in Book III, Title III of the National Civil and Commercial Procedural Code (Law 17,454). Payments to be made will be cancelled by bank transfer or check, unless they are up to $ 1,000, in which case payment in cash is exceptionally admitted.
-12- Execution will be promoted based on a copy of the resolution applying the fine, signed by two authorized signatures of the SEFyC.
3.2. Payment Facilitation Regime At the request of natural and/or legal entities sanctioned with fines imposed under the framework of the LEF, the BCRA may grant payment facilitations in the following cases:
3.2.1. When financial entities included within the scope of BCRA control under the terms of the LEF credibly demonstrate that the fine generates a defect in the integration of the minimum capital requirement. Requests must be accompanied by a plan for new capital contributions compatible with the plan granted and the overcoming of minimum capital restrictions, subject to the approval of the SEFyC.
3.2.2. When it concerns the rest of natural or legal entities sanctioned for their conduct in financial or exchange entities.
3.2.3. When it concerns natural or legal entities not subject to BCRA control, provided it does not refer to sanctions imposed under article 38 of the LEF.
3.3. The Main Management of Asset Administration and Trust Control will resolve all cases raised based on current regulations and will order the use of standard forms, which will be approved by that instance and whose use is an indispensable condition for considering any request made, within the framework of granting the facilitation plan and for maintaining it.
3.4. Submission of the Installment Concession Request.
3.4.1. Demonstrate with the submission of the request the deposit of 10% (ten percent) of the amount of the sanction through bank transfer or check. The deposit will be imputed to the payment of the last installments and, in cases of subsequent withdrawal of the request or failure to conclude the facilitation agreement, to reduce the amount owed.
3.4.2. Demonstrate, with the submission of the request, the payment of the administrative expense charge, which will be equivalent to 0.5% (one half percent) of the amount of the sanction. In no case can this payment exceed the sum of one fifth (1/5) of a Sanctioning Unit as provided in point 8.2.
3.4.3. The Main Management of Asset Administration and Trust Control will handle all types of communication or request to the interested party related to the issues raised and will set, in each case, a deadline whose non-compliance will mean the automatic withdrawal of the installment payment request, proceeding immediately to the judicial execution of the imposed fine.
3.4.4. It must be done within five (5) business days from the effective notification of the imposed fine.
-13- 3.5. Inexcusable Conditions for Granting Facilitations.
3.5.1. Submission of a sworn statement regarding the sanctioned party's income, patrimonial, and solvency situation, and the relevant supporting documentation.
3.5.2. When the total amount of the imposed fine is up to a maximum of 20 Sanctioning Units, it is required that a third party assumes the obligation to cancel said fine plus all interests and other accessories, costs, and judicial and extrajudicial expenses as a joint and several debtor, plain, simple, and principal payer.
3.5.3. When the total amount of the imposed fine exceeds 20 Sanctioning Units, the sanctioned party will guarantee compliance with the agreement with real guarantees satisfactory to the BCRA.
3.5.4. Submission of a sworn statement regarding the joint and several debtor's income, patrimonial, and solvency situation, accompanied by the relevant supporting documentation. The joint and several debtor's net worth may not be less than 125% of the amount of the imposed fine, plus its interests, for the entire duration of the payment plan.
3.6. The Sub-Management of Trust Control will instrument the payment commitment of the interested party and the joint and several debtor, which must be approved by the Main Management of Asset Administration and Trust Control. If there are judicial actions for the collection of the fine in progress, the agreement must be submitted for judicial homologation.
3.7. Facilitations will be granted for up to 36 (thirty-six) equal and consecutive monthly installments whose value may not be less than 20% of the value of the Sanctioning Unit in effect at the time of granting, and unless there is an express acknowledgment of the obligation with the ability to interrupt the statute of limitations under article 2545 of the Civil and Commercial Code of the Nation, in no case can facilitations be granted for a number of installments exceeding the three-year statute of limitations for fines provided in article 42 of the LEF. Exceptionally, the minimum installment value may be reduced at the time of granting to reach 10% of the value of the Sanctioning Unit in effect, provided that the BCRA judges that the sanctioned physical person is unable to meet the payment due to their patrimonial and income situation. The sanctioned party may also opt for the cash cancellation of the fine with interest, establishing a maximum deadline of 60 days for its cancellation. The sanctioned party must demonstrate with the submission of their request, the deposit of 10% of the total sanction referred to in point 3.4.1., which will be considered as payment on account of the remaining debt. The outstanding balance will accrue compensatory interest referred to in point 3.8., from the date of the advance payment until its effective cancellation.
3.8. During the time elapsed from the date of notification of the resolution imposing the fine until its full payment, compensatory interest equivalent to the interest rate for 30-day fixed peso deposits published through the BCRA's Statistical Bulletin, increased by one percentage point, valid on the last business day of the month immediately preceding the date of signing the payment agreement, will accrue.
-14- 3.9. The procedure provided for in this regulatory framework is optional and instituted for the benefit of the sanctioned party, to facilitate compliance with the imposed pecuniary penalty, with the first effect being the suspension of fiscal execution. To this end, the sanctioned party must appear at the time indicated to sign a document requesting the suspension of procedural deadlines for a period of 35 business days. Authorization from this Body for such suspension of deadlines is understood to be granted, under the terms of Article 157 of the Civil and Commercial Procedural Code of the Nation, to the representatives of the BCRA acting in each process. Therefore, all deadlines set will be peremptory, all rulings issued will be unappealable, and any request not resolved within ten (10) business days of its presentation will be considered tacitly denied. The procedural initiative rests with the sanctioned party, who must pursue the procedure such that if the agreement is not finalized within 45 business days of its original presentation, a complete copy of the file formed for this purpose will automatically be sent to the Main Office of Legal Affairs so that it has all the necessary data to initiate or continue fiscal execution.
3.10. If no judicial actions have been initiated, when the resolution rejects the proposed payment plan, the Main Office of Legal Affairs will be intervened to immediately initiate judicial actions for the execution of the fine plus interest.
3.11. Failure to pay any of the installments on time will result, without the need for prior notice, in the automatic expiration of the payment facilities granted and will make the outstanding balance immediately due, plus interest, which will not be subject to new facilities. The sanctioned party and the joint and several guarantor will be summoned to deposit these sums within 5 business days. If this deadline expires without the total cancellation of the fine, its interest, and expenses, the Main Office of Legal Affairs will be intervened to initiate actions aimed at the execution of the obligation.
3.12. A necessary condition for maintaining the granted payment plan is that both the sanctioned party and the current guarantor update information regarding the composition of their assets and income, attaching the documentation determined by the Main Office of Asset Management and Trust Control when the BCRA so requires. Failure to comply with this obligation by either party will result, without the need for prior notice, in the automatic expiration of the granted payment plan and will make the outstanding balance immediately due, plus interest, which will not be subject to new facilities.
3.13. Any request implying a grace period, payment with securities or other instruments, debt settlement, deferral of the start of judicial actions, and in general, any type of proposal that does not strictly adhere to this regime or is not total cash payment, will be rejected without further procedure, and the Main Office of Legal Affairs will be intervened for the judicial execution of the imposed fine.
-15- 3.14. When judicial execution for the collection of the fine has already been initiated, a condition for granting facilities is that the executed party assumes all costs and expenses of that lawsuit. In such cases, precautionary measures that have been placed will remain in effect until full compliance with the granted payment plan is achieved.
3.15. The Sub-Office of Trust Control will be responsible for collection management.
3.16. A report will be provided every four months to the Board of Directors Commission with competence in the legal area regarding the application of this regime.
3.17. Upon notification of the sanctioning resolution, the existence of this payment facilities regime will be brought to the knowledge of the sanctioned parties.
3.18. This regulatory body will apply even for the payment of fines imposed prior to the effective date of this norm, with or without judicial execution initiated, except for cases of payment facilities that are currently being fulfilled regularly.
3.19. All payment proposals not yet granted must be adapted to this regulatory framework within 10 business days counted from when the sanctioned party receives the relevant notification from this BCRA. The expiration of this deadline without the sanctioned party having adapted their payment proposal, or their opposition to doing so, will mean the automatic withdrawal of the request, and the immediate initiation of judicial execution of the imposed fine must proceed.
3.20. The request for payment facilities and the assumption of relevant commitments under this regime regarding fines imposed for the performance of external audit tasks (Articles 41 and 42 of the LEF) must be signed by the sanctioned party and their joint and several guarantors, in accordance with what is established in the Minimum Standards for External Audits in Financial Entities.
3.21. Payments to be made within the framework of payment plans must be cancelled in accordance with what is established in point 3.1., second paragraph.
Section 4. Publicity of resolutions. Resolutions that end summary processes processed by the BCRA under Article 41 of the LEF will receive the following treatment:
4.1. They will be made known on the BCRA website, indicating whether the resolutions are final or not.
4.2. They will be made known, whether final or not, by communication addressed to the entities covered by the LEF and Law 18,924, the following sanctions:
4.2.1. Revocation of the authorization to operate.
-16- 4.2.2. Temporary or permanent disqualification from serving as promoters, founders, directors, administrators, members of supervisory boards, trustees, liquidators, managers, auditors, partners, or shareholders of the entities covered by the LEF and Law 18,924.
4.3. If a resolution is modified for any reason, the corresponding dissemination will be made through the same medium used to communicate the originally resolved matter.
Section 5. Recourse paths. The admissible recourse paths for the imposition of sanctions resolved under Article 41 of the LEF will be those provided for in Article 42 of the cited legal body; the Administrative Procedures Law 19,549 and its regulatory decree (t.o. 1991) are not applicable.
Section 6. Summary proceedings and sanctions for financial issuer entities and non-financial credit card issuers.
6.1. Scope of application. In exercise of the powers conferred by Articles 17, 48, 50 item a) and 54 of the Credit Cards Law 25,065 (LTC) and the extension of the application of the LEF dispensed by Communication “A” 5388, the BCRA instructs summary proceedings and applies sanctions to financial issuer entities and non-financial issuers who infringe the provisions of said law in the financial aspects of the operation, in accordance with the provisions provided for in this regulatory body, with Sections 1., 2., 3., 4., 5. and 7. being applicable insofar as pertinent.
6.2. Sanctions. Fines for infringements to financial aspects will be applied by the Superintendent of Financial and Currency Entities in accordance with the provisions of Article 48 of Law 25,065. In this order, the following reference values are established for the determination of fines:
6.2.1. For non-compliance with the maximum legal level admitted for interest rates to be applied to financings (Articles 16, 18, 19, 20 or 21 of the LTC). Reference Value = Liquidated Interests x Adjustment Coefficient 1 The liquidated interests correspond to the total determined for account summaries with such non-compliances. The Adjustment Coefficient 1 will take a value according to the level of excess in the interest rate applied for the liquidation of interest, according to the following scale -in which the applied interest rate is expressed as a multiple of the maximum admitted rate to liquidate interest-: Less than 1.05 times: 0.25
-17- Between 1.05 and 1.20 times: 0.50 Greater than 1.20 times: 0.75 This, without prejudice to the restitution that the issuer must make to the holder and other consequences before third parties that correspond.
6.2.2. For non-compliance with the obligation to exhibit to the public the financing rate applied to the Credit Card system (Article 16, last paragraph of the LTC). Reference Value = Liquidated Interests by credit cards issued in the houses where the infringement was verified during the calendar month in which the failure was detected x Adjustment Coefficient 2. The Adjustment Coefficient 2 is fixed at 0.1.
6.2.3. For non-compliance with the information obligation provided for in Article 54 of the LTC. Reference Value = Liquidated Interests in credit cards associated with offers not reported to the respective application authority in commercial matters during the validity period of the unreported offers x Adjustment Coefficient 3. The Adjustment Coefficient 3 is fixed at 0.05. The reference values defined in points 6.2.1., 6.2.2. and 6.2.3. may be increased up to 20 times, taking into account the gravity of the offenses, recidivism in them (when the issuer has been sanctioned by final resolution for one or several infringements, and during the following 12 consecutive months commits a new infringement) and the repetition of irregularities (when the issuer has incurred several infringements in a period of 12 consecutive months, by virtue of which a summary is processed). In particular, recidivisms will be computed as follows: − For those sanctioned by final resolution that commit new infringements within the twelve-month period following said decision, the fines will include an increase of 40% (forty percent) of the applicable reference amount. − In cases of new recidivisms computed as explained above, the fines to be applied will include an increase of up to 100% (one hundred percent) of the reference amount.
6.3. Infringements in commercial matters. The BCRA will intervene the application authority of the respective jurisdiction that proves competent when it becomes aware of situations that could configure infringements in commercial matters.
-18- Section 7. Electronic Notification System (SNE).
7.1. Exclusive system for electronic notifications in summary proceedings. Users of the system can only receive notifications, not being enabled to respond, send, or forward emails.
7.2. Constitution of electronic domicile. At the time of appearing for the first time in a summary proceeding, whoever does so on behalf of the accused, whether by own right or in exercise of legal or conventional representation, must constitute an electronic domicile, assuming that notifications made thereunder in accordance with the present and its complementary provisions will be considered valid and effective, therefore assuming the burden of reviewing their content daily, regardless of any notice or courtesy message that the BCRA may send them.
7.3. Notifications to the electronic domicile. Notifications of all rulings and resolutions that the BCRA must practice at the constituted domicile will be carried out at the electronic domicile that the accused and/or their legal representative must have constituted in accordance with what is provided for in point 7.2.
7.4. Perfection of notification. The notification will be considered perfected from the moment the ruling or resolution is available for the user in the SNE, and deadlines will begin to run from zero hours on the day following that occurrence. To establish the start of the notification deadline, its date and time will be that of the server used for this purpose. The accused and their representatives have the procedural burden of entering the SNE in the manner that the BCRA will subsequently establish; therefore, if they do not, they will still be notified regarding the rulings and resolutions notified at their electronic domicile.
7.5. Non-compliance with the burden of constituting electronic domicile. This will have the consequence that all rulings and resolutions will be considered notified on the first note day following the date of their issuance.
7.6. Note days. Tuesdays and Fridays. If one of them is a non-working day, the notification will take place on the next working note day.
-19- 7.7. Code assignment. The accused, by own right or through their legal or conventional representatives, may obtain the user code and password to access the SNE, at the Main Office of Contencious Affairs (working days from 10:00 to 13:00), dependent on the SEFyC, for which they must present: − National Identity Document (DNI). − CUIL/CUIT Certificate (obtained from the ANSES website) − In case of appearing on behalf of the accused, they must prove such condition. − Note signed by the applicant, requesting the assignment of a user code and password to access the Electronic Notification Site, detailing: − Name/s and Surname/s − DNI − CUIL/CUIT − Email address The holder of the user code will be solely responsible for its use.
Section 8. Other provisions.
8.1. Circumstances and exceptional cases. In cases where circumstances justify it, the resolving instance may apply criteria that depart from what is provided for in this regime, excepting, attenuating, or aggravating sanctions in a well-founded manner. Particular cases may have characteristics that do not fit within the norm, which will not prevent the BCRA from exercising, always in a well-founded and circumstantial manner regarding the facts, the discretion attributed to it by the LEF in the matter.
8.2. Sanctioning Unit. The unit of measurement called “Sanctioning Unit” is created, which will amount to $ 50,000 (fifty thousand pesos) throughout the year 2017. The value of the Sanctioning Unit in effect in each calendar year will be determined by the BCRA Board of Directors in the first board meeting held in the respective year and will be published via Communication “B”. Fine sanctions will be calculated using the value of the Sanctioning Unit in effect at the moment of the issuance of the sanctioning resolution by the BCRA and will be expressed in Argentine pesos.
-20- Section 9. Catalog of infractions.
| Infraction | Gravity | Max Fine Group A (in Sanctioning Units) | Max Fine Group B (in Sanctioning Units) |
|---|---|---|---|
| Group A | |||
| 9.1. Marginality. | |||
| 9.1.1. Habitual marginal collection of funds within authorized entities. | Very High | 800 | N/A |
| 9.1.2. Execution of operations implying habitual intermediation between the supply and demand of financial resources without prior BCRA authorization. | Very High | 800 | 400 |
| 9.1.3. Lack of registration of currency operations and/or lack of preparation of currency slips within entities authorized by the BCRA. | Very High | 800 | 400 |
| 9.1.4. Significant shortages or surpluses of values detected during a cash count carried out by the BCRA. | High | 300 | 150 |
| 9.2. Prohibited and limited operations. | |||
| 9.2.1. Execution of operations not permitted for each class of entity and exceeding the authorization granted by the BCRA, not covered in other points. | Very High | 500 | 250 |
| 9.2.2. Acceptance as collateral of their own shares by financial entities. | High | 300 | N/A |
| 9.2.3. Activity in a location or site prohibited by applicable norms. | High | 200 | 100 |
| 9.2.3. Constitution of liens on their assets without BCRA authorization as referred to in norms on “Asset Affection as Collateral”. | High | 300 | N/A |
| 9.2.4. Exploitation on their own account of commercial, industrial, agricultural, or other enterprises by financial and currency entities not admitted by pertinent norms. | High | 300 | 150 |
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| 9.2.5. Operations with directors and administrators of the financial entity or with companies or persons linked under more favorable conditions than those ordinarily agreed with their clientele. | High | 300 | N/A |
|---|---|---|---|
| 9.2.6. Currency operations on days and hours not authorized for this purpose. | High | 200 | 100 |
| 9.2.7. Operations prohibited by norms on “Exchange Houses, Agencies and Offices”. | High | N/A | 100 |
| 9.2.8. Execution of currency operations in periods not authorized due to non-compliance with regulatory norms related to information regimes, such as OPECAM. | High | 200 | 100 |
| 9.3. Accounting registrations that do not reflect the real economic and financial patrimonial situation of the entity. Overvaluation of assets or concealment of liabilities. | |||
| 9.3.1. Irregularities aimed at hiding that the entity does not meet minimum capital integration. | Very High | 400 | 200 |
| 9.3.2. Lack of truthfulness in accounting registrations that do not reflect the real economic-financial patrimonial situation; accounting registration of non-genuine or non-existent operations, including concealment of expenses and other negative results, and, in the case of financial entities, the defect of provisions for uncollectibility risk, originated both in errors in the classification of debtors as well as in the non-registration of them according to the corresponding classification. | Very High | 400 | 200 |
| 9.4. Obstruction to supervision tasks. | |||
| 9.4.1. Difficulting or obstructing the start and development of cash counts and/or hindering the tasks of the BCRA verification procedure. | Very High | 400 | 200 |
| 9.4.2. Refusal to grant access to their accounting, books, correspondence, documents, and papers to SEFyC officials. | High | 200 | 100 |
| 9.4.3. Unjustified delays or repeated sending of incomplete documentation in response to BCRA requests. | Medium | 70 | 35 |
| 9.5. Credit norms. | |||
| 9.5.1. Financing to the non-financial public sector without BCRA authorization. | High | 250 | N/A |
| 9.5.2. Irregularities in export pre-financing operations. | High | 150 | N/A |
| 9.5.3. Credit portfolio concentration. | Medium | 80 | N/A |
| 9.5.4. Non-compliance with norms on “Credit Assistance to Suppliers”. | Medium | 80 | N/A |
| 9.5.5. Non-compliance with norms on “Credit Line for Productive Investment” and on “Financing Line for Production and Financial Inclusion”. | Medium | 80 | N/A |
| 9.5.6. Non-compliance with norms on “Credit Policy”. | Low | 50 | N/A |
| 9.6. Undeclared non-compliances of technical relations. | |||
| 9.6.1. To norms on “Assistance to Related Parties”. | High | 250 | N/A |
| 9.6.2. To minimum capitals. | High | 250 | 125 |
| 9.6.3. To other provisions of norms on “Credit Risk Fragmentation”. | High | 250 | N/A |
| 9.6.4. To norms on “Credit Graduation”. | High | 250 | N/A |
| 9.6.5. To norms on “Minimum Cash”. | High | 250 | N/A |
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| 9.6.6. To norms on “Global Net Position of Foreign Currency” and “General Exchange Position”. | High | 250 | 125 |
|---|---|---|---|
| 9.6.7. To norms on “Liquidity Coverage Ratio”. | Low | 50 | N/A |
| 9.7. Non-observance of SEFyC instructions. | |||
| 9.7.1. Failure to comply with indications formulated by supervisors designated in the financial entity. | High | 200 | N/A |
| 9.7.2. Non-observance of BCRA instructions and non-compliance with cease and desist orders dispensed by the SEFyC. | High | 200 | 100 |
| 9.8. Norms on external control and/or audit. | |||
| 9.8.1. Repeated absence of relevant working papers regarding reports on internal control and external audits. | High | 150 | 75 |
| 9.8.2. Irregularities detected and not included or mentioned in external audit reports. | High | 150 | 75 |
| 9.8.3. External audit procedures not performed or performed deficiently on significant aspects. | High | 150 | 75 |
| 9.8.4. Other non-compliances with minimum norms on external audits not provided for in other points. | Medium | 60 | 30 |
| 9.9. Norms on internal control and/or audit. | |||
| 9.9.1. Repeated absence of relevant working papers regarding reports on internal control and internal audit. | High | 150 | 75 |
| 9.9.2. Irregularities detected and not included or mentioned in internal audit reports. | High | 150 | 75 |
| 9.9.3. Internal audit procedures not performed or performed deficiently on significant aspects. | High | 150 | 75 |
| 9.9.4. Other non-compliances with minimum norms on internal control systems and internal audit not provided for in other points. | Medium | 60 | 30 |
| 9.10. Deposit Guarantee Insurance System. | |||
| 9.10.1. Non-compliance with norms on “Application of the deposit guarantee insurance system”. | High | 200 | N/A |
| 9.11. Norms on expansion of financial and currency entities. | |||
| 9.11.1. Opening or closing of branches, dependencies, and installation of ATMs in infringement of BCRA norms in this matter. | High | 150 | 75 |
| 9.11.2. Other non-compliances with norms on constitution or functioning of entities, branches, dependencies, and ATMs. | Medium | 70 | 35 |
| 9.12. Share transfers and appointments of executives and/or officials. | |||
| 9.12.1. Non-compliance with norms on share transfers. | High | 150 | 75 |
| 9.12.2. Performance of the position of Director, Trustee, and/or General Manager in a financial entity without prior BCRA authorization. | High | 150 | 75 |
| 9.12.3. Non-observance of norms on disqualifications and incompatibilities to perform functions provided for in Article 10 of the Financial Entities Law. | High | 150 | 75 |
| 9.12.4. Adoption of decisions in board meetings that do not observe the requirement of the percentage of directors with suitability and experience present, established according to the type of entity. | Medium | 60 | N/A |
| 9.12.5. Other non-compliances with norms relative to appointment of executives and | Low | 10 | 5 |
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officials not foreseen in previous points.
9.13. Distribution of results.
9.13.1. Distribution of results without complying with what is required by current regulations. High 150 N/A
9.14. Protection of users of financial services.
9.14.1. Contractual or regulatory breaches related to the charging of commissions and/or fees. High 250 125
9.14.2. Excesses over the maximum financing rates established by the Credit Card Law. Medium 70 N/A
9.14.3. Breaches related to the exposure and advertising of the total financial cost. Medium 70 N/A
9.14.4. Other breaches of the rules on "Protection of users of financial services". Medium 70 35
9.14.5. Non-compliance with provisions contained in the rules on "Savings deposits, salary accounts and special accounts". Medium 70 N/A
9.15. Rules on the management, implementation and control of risks related to information technology, information systems and associated resources.
9.15.1. Regarding rules on processing continuity. High 100 50
9.15.2. Regarding rules on technological risk analysis. High 100 50
9.15.3. Regarding rules on the protection of information assets. High 100 50
9.15.4. Regarding rules on the management and control of IT resources. High 100 50
9.15.5. Regarding rules on operations and data processing. High 100 50
9.15.6. Regarding rules on outsourcing and/or decentralization of activities. High 100 50
9.15.7. Regarding rules on electronic channels and mobile payment platforms. High 100 50
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9.15.8. Regarding rules on controls of information application systems, related to all current legal and regulatory requirements. High 100 50
9.15.9. Breaches of the rules on management, implementation and control of risks related to IT, information systems and associated resources not foreseen in other points. Medium 60 30
9.16. Information regime.
9.16.1. Lack and/or deficiencies in the integration of the information regimes required by current regulations. Medium 70 35
9.16.2. Omission to report related persons. Medium 70 35
9.16.3. Non-compliance with the information that must be presented by representatives of foreign financial entities not authorized to operate in the country. Medium 70 35
9.16.4. Repeated late submission of information regimes. Low 40 20
9.16.5. Breaches of the Information Regimes. OPCAM and/or LAVDIN bases: erroneous information, omissions and/or incorrect integration. Low 20 10
9.17. Debtors registry.
9.17.1. Commission of a significant number of errors in Debtors of the Financial System in the declaration of the debtors' situation. Medium 70 N/A
9.18. Passive operations of financial entities.
9.18.1. Non-compliance with provisions on deposits and the check regime. Medium 70 N/A
9.18.2. Revealing the passive operations carried out, except when there is a request from a competent authority. Medium 70 N/A
- 2 7 - 9 . 1 9 . M e d i d a s d e s e g u r i d a d . 9 . 1 9 . 1 . I n c u m p l i m i e n t o s r e l e v a n t e s a l a s m e d i d a s m \u00ed n i m a s d e s e g u r i d d n o r m a d a s p o e l B C R A . M e d i a 8 0 N / A 9 . 1 9 . 2 . I n c u m p l i m i e n t o s q u e q u i t e y / d i s m i n u y a n e f i c a c i a a l o s s i s t e m a s , d e v i c i o s o s s e r v i c i o s n o r m a t i v a m e n t e i m p l e m e n t a d o s p a r a p r e v e - n i r l a c o m i s i \u00f3 n d e h e c h o s d e l i c t i v o s . M e d i a 6 0 3 0 9 . 1 9 . 3 . I n c u m p l i m i e n t o s a l a s m e - d i d a s d e s e g u r i d d n o c a l i c i f i c a d o s c o m d e g r a v e d a m e d i a . B a j a 2 0 1 0 9 . 2 0 . C o m p e n s a c i \u00f3 n i n t e r b a n c a r i a d e b i l l e t e s . 9 . 2 0 . 1 . I n c u m p l i m i e n t o a l a s n o r - m a s s o b r e c o m p e n s a c i\u00f3 n i n t e r b a n c a r i a d e b i l l e t e s . M e d i a 7 0 N / A 9 . 2 1 . O t r o s . 9 . 2 1 . 1 . I n c u m p l i m i e n t o e n l a c o n - s e r v a c i\u00f3 n d d d o c u m e n t a c i\u00f3 n d d e o p e r a c i\u00f3 n c a m b i a r i a s . A l t 1 0 0 5 0 9 . 2 1 . 2 . U t i l i c i\u00f3 n d d d e n o m i n a c i\u00f3 n p r e v i s t a s e n l a L e y d e E n t i d a d e s F i n a n c i e r a s o e n l a L e y d e C a s a s , A g e n c i a y O f i c i n a s d e C a m b i o p o r p a r t e d e p e r s o n a s h u m a n a s y / j u r \u00ed d i c a s n o a u t o r i c a z a d a s q u e i n d u c a y a d u d a y / c o n f u s i\u00f3 n a c e r c a d d e s u n a t u r a t e l e g a . A l t 1 0 0 5 0 9 . 2 1 . 3 . 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