Circular OPASI 2-412. LISOL 1-523. OPRAC 1-645. RUNOR 1-928. Correspondence Accounts. Prevention of Money Laundering and Other Illicit Activities. Credit Management. Classification of Debtors. Credit Policy. Consolidated Supervision. Minimum Capital of Financial Entities. Representatives of Foreign Financial Entities Not Authorized to Operate in the Country — BCRA — AR

"2010 - YEAR OF THE BICENTENNIAL OF THE MAY REVOLUTION" COMMUNICATION “A” 5093 29/06/2010 TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 412
LISOL 1 - 523
OPRAC 1 - 645
RUNOR 1 - 928
Correspondence Accounts. Prevention of money laundering and other illicit activities. Credit management. Classification of debtors. Credit policy. Consolidated supervision. Minimum capital of financial entities. Representatives of foreign financial entities not authorized to operate in the country. ______ We address you to inform you that this Institution has adopted the following resolution:

“1. Approve the regulations on “Correspondence Accounts” attached as an Annex to this resolution, to which financial and exchange entities must adhere as established in the following point 2.

Establish that the regulations on “Correspondence Accounts” will apply to new account openings taking place from 08/01/2010. The remaining correspondence accounts in foreign financial entities included in the definition of the second paragraph of point 1.4 of the regulations on “Correspondence Accounts” that are already operational and/or whose opening is effected before that date, must be framed within the aforementioned regime from 10/01/2010.
Replace, with effect from 08/01/2010, point 1.6.2. of Section 1. of the regulations on “Prevention of money laundering and other illicit activities”, with the following:

“1.6.2. During the course of the contractual or commercial relationship, the following actions must be carried out:
1.6.2.1. Monitoring of operations:

Adopt risk analysis policies within the entity.
Define parameters for each type of client based on their initial profile and in accordance with the risk analysis policies implemented by each entity.
Establish a specific scheme for control and monitoring of operations carried out in correspondence accounts opened by financial entities and exchange houses in the country.
In the event that deviations, incongruities, incoherences, or inconsistencies are detected, the analysis of the operation(s) must be deepened in order to obtain additional information that corroborates or reverses the situation presented.
1.6.2.2. The unusual or suspicious nature of the operation may also be based on elements such as volume, value, type, frequency, and nature of the operation compared to the client's usual activities.
1.6.2.3. In order to achieve adequate control of the operations performed by clients, segmentation parameters or any other instrument of similar efficacy must be adopted, by risk levels, by product class, or by any other criterion, that allows identifying unusual operations, for which adequate levels of technological development must be implemented according to the type and volume of operations of each entity, ensuring the greatest coverage and reach of their control mechanisms.”

Replace, with effect from 08/01/2010, the first paragraph of point 1.1.2. and item iii) of point 1.1.3.2. of Section 1. of the regulations on “Credit Management”, with the following:

“1.1.2. Opening.
The entity must maintain a file for each debtor in its portfolio, as well as for each of its correspondents, in accordance with what is established in the regulations on “Correspondence Accounts”."

... ...

“iii) In the case of correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, qualification, credit margins, and any other data linked to that relationship, in accordance with what is established in the regulations on “Correspondence Accounts”."

Replace, with effect from 08/01/2010, the first paragraph of point 3.4.1. and the penultimate paragraph of point 3.4.2. of Section 3. of the regulations on “Classification of Debtors”, with the following:

“3.4.1. Opening.
The entity must maintain a file for each debtor in its portfolio, as well as for each of its correspondents, in accordance with what is established in the regulations on “Correspondence Accounts”."

... ...

“In the case of correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, qualification, credit margins, and any other data linked to that relationship, in accordance with what is established in the regulations on “Correspondence Accounts”."

-3-

Replace, with effect from 08/01/2010, point 5.2. of Section 5. of the regulations on “Credit Policy”, with the following:

“5.2. Placements in foreign banks.
Financial entities may maintain correspondence accounts and demand accounts in foreign banks necessary for their operations, in accordance with what is established in the regulations on “Correspondence Accounts”."

Incorporate, with effect from 08/01/2010, as point 5.2.4. of Section 5. of the regulations on “Consolidated Supervision”, the following:

“5.2.4. The foreign branches of financial entities and their significant subsidiaries, in accordance with what is provided in point 2.1.2. of these regulations, must observe the regulations on “Correspondence Accounts”."

Replace, with effect from 08/01/2010, point 7.2.5.1. of Section 7. of the regulations on “Minimum capital of financial entities”, with the following:

“7.2.5.1. Balances in correspondence accounts with respect to foreign financial entities that do not have an international risk rating included in the “investment grade” category, granted by any of the rating agencies admitted by the regulations on “Evaluation of financial entities”. This deduction will be made based on the highest balance in each bank registered during the month to which the determination of the computable net worth corresponds. To this end, balances in correspondence accounts registered with respect to the following will not be deducted:
a) The parent house of local branches of foreign banks or their branches and subsidiaries in other countries. b) Foreign banks or other financial institutions that exercise control over local financial entities constituted as joint-stock companies. c) Other foreign banks authorized to intervene in the regimes of reciprocal payment and credit agreements to which the Central Bank of the Argentine Republic has adhered, as well as their branches and subsidiaries, even if they are not included in those agreements. d) Branches and subsidiaries of local financial entities. e) Balances that, on a transitory and circumstantial basis, originate from client operations, such as those linked to foreign trade operations or other types of accreditation ordered by third parties that do not imply financial responsibility for the entity.”

-4-

Replace, with effect from 08/01/2010, point 1.3.4.1., of Chapter XVI of Circular RUNOR - 1 (text according to Communications “A” 422, 1863, 2744, 3795, 4535 and 4622), with the following:

“1.3.4.1. For the purposes indicated in these regulations, net worth is defined as integrated by the following concepts:
i) Share capital. ii) Adjustments to equity. iii) Non-capitalized contributions. iv) Profit reserves. v) Unassigned results. The positive result of the last closed fiscal year will be computed once the auditor's report is available. Balances in favor resulting from the application of the minimum presumptive income tax -net of provisions for devaluation risk- will be deducted for amounts exceeding 5% of the computable net worth corresponding to the previous semester. In the particular case of exchange houses, balances registered in the assets in correspondence accounts with respect to foreign financial entities that do not have an international risk rating included in the “investment grade” category, granted by any of the rating agencies admitted by the regulations on “Evaluation of financial entities”, will be additionally computed as deductible concepts, according to the terms specified in point 7.2.5.1. of Section 7. of the regulations on “Minimum capital of financial entities”."

Replace, with effect from 08/01/2010, point 1.4. of Section 1. of the regulations on “Representatives of foreign financial entities not authorized to operate in the country”, with the following:

“1.4. Permitted operations.
It is the representative's responsibility to advise and manage guarantees and/or financings with the intervention of the represented entity as guarantor, lender, or agent in relation to the issuance and placement of debt in institutionalized foreign markets. Likewise, the representative may manage the opening of correspondence accounts for local financial entities and exchange houses.”

Additionally, we point out that the scheduled date for the framing of correspondence accounts opened in foreign financial entities (10/01/2010) will also apply to correspondence accounts opened in local financial entities that are already operational and/or whose opening is effected before 08/01/2010.

We send you the sheets that, in replacement of those previously provided, should be incorporated into the referenced texts. Likewise, we remind you that on this Institution's website www.bcra.gov.ar, accessing “regulations” (“ordered texts”), the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli Alfredo A. Besio
Manager of Emission of Norms
General Deputy Manager of Norms

TO:

ANNEX

Index -
Section 1. Provision of correspondent service to financial entities - “your account”.
1.1. Participating entities.
1.2. Opening and operation. Minimum information to be requested.
1.3. Grounds for account closure.
1.4. Foreign financial entities.
Section 2. Request for correspondent service in financial entities - “our account”.
2.1. Participating entities.
2.2. Opening and operation of accounts opened in foreign financial entities.
Section 3. Request for correspondent service by exchange houses - “our account”.
3.1. Request for service in branches and subsidiaries of financial entities of the country located abroad.
3.2. Request for service in foreign financial entities.
Correlation table.
B.C.R.A.
ORDERED TEXT OF THE REGULATIONS ON
“CORRESPONDENCE ACCOUNTS”
Validity:
01/08/2010

1.1. Participating entities.
Financial entities in the country are authorized to offer the opening of accounts and the provision of related services to other financial entities in the country exclusively for the realization of admitted local transactions, in order to process settlement of collections and payments, liquidity management, loans, collection, transfers, and clearing, observing what is provided by the regulations on “Credit Policy”. These regulations will not apply to the opening of accounts intended for the integration of minimum cash.

1.2. Opening and operation. Minimum information to be requested.
The information required for the opening of accounts will be kept in a file that, for each client, must be maintained as provided in point 1.1. of the regulations on “Credit Management”, together with the information and other elements of judgment that allow knowing their identification according to point 1.3.2.1.2. of the regulations on “Prevention of money laundering and other illicit activities”, qualification, credit margins, and any other data that the entity opening the account requires for its evaluation. This requirement will apply regardless of whether the movements of the correspondence accounts - whatever their nature - generate creditor balances (deposits or other obligations of the financial entity opening the account) or debtor balances. In this sense, the requesting financial entity must present the documentation detailed below:
1.2.1. Purpose of the account.
1.2.2. Authorized legal representatives with signature power to operate with the entity on behalf and representation of the requesting entity, regarding which the identification requirements for physical persons - usual clients - provided in the regulations on “Prevention of money laundering and other illicit activities” must be fulfilled.
The information listed in this point must be updated by the requesting entity when modifications occur or, in default, every two years.
The opening of the account must be approved by the Board of Directors or Board of Administration, or the highest local authority in the case of branches of foreign financial entities, as appropriate. The total or partial impossibility of complying with any of the aforementioned information, authorization, and/or update requirements will constitute an impediment for the opening and/or maintenance of the correspondence account.

CORRESPONDENCE ACCOUNTS
B.C.R.A.
Section 1. Provision of correspondent service to financial entities - “your
account”.
Validity:
01/08/2010

1.3. Grounds for account closure.
1.3.1. By decision of the client financial entity, for which the closure will be processed after the notice sent by it in time and form as provided by the depositary entity and all pending operations have been cancelled.
1.3.2. By decision of the financial entity administering the correspondence account, prior notice sent to the client entity in time and form as agreed.
Without prejudice to the above, financial entities must close the correspondence account, as well as the provision of any correspondent service with the client financial entity when, after the opening of the account, the condition of updating the information referred to in point 1.2. is not verified.

1.4. Foreign financial entities.
Financial entities in the country may provide the aforementioned services to foreign financial entities only through their branches and subsidiaries located abroad. For the purposes of this regulation, foreign financial entities are considered those that, constituted according to applicable foreign law, have as their permitted activity to develop in the foreign markets where they operate, the habitual intermediation between the supply and demand of financial resources - public deposits - in the terms of the Argentine Financial Entities Law and its regulation, regardless of the corporate type adopted and/or their public, private, or mixed character. The requirements for opening, operation, and closure of accounts established in this section will apply to financial entities in the country and, additionally, in point 2.2. of these regulations.

CORRESPONDENCE ACCOUNTS
B.C.R.A.
Section 1. Provision of correspondent service to financial entities - “your
account”.
Validity:
01/08/2010

2.1. Participating entities.
Financial entities in the country are authorized to request the opening of correspondence accounts, in financial entities in the country and abroad, in order to carry out admitted operations of settlement of collections and payments, liquidity management, loans, collection, transfers, and clearing, observing what is provided by the regulations on “Credit Policy”. The opening of the account must be approved by the Board of Directors or Board of Administration, or the highest local authority in the case of branches of foreign financial entities, as appropriate. These regulations will not apply to the opening of accounts intended for the integration of minimum cash. Regarding foreign financial entities, they are considered as such those that, constituted according to applicable foreign law, have as their permitted activity to develop in the foreign markets where they operate, the habitual intermediation between the supply and demand of financial resources - public deposits - in the terms of the Argentine Financial Entities Law and its regulation, regardless of the corporate type adopted and/or their public, private, or mixed character. Financial entities must request the information that allows knowing the identification of their counterparties as provided by point 1.3.2.1.2. of the regulations on “Prevention of money laundering and other illicit activities”.

2.2. Opening and operation of accounts opened in foreign financial entities.
The opening of accounts in foreign financial entities referred to in point 2.1. must be carried out in entities regarding which the compliance with the following requirements is verified, regardless of whether the movements of the correspondence accounts - whatever their nature - generate creditor balances or debtor balances, namely:
2.2.1. That it has a Manual for the prevention of money laundering and terrorist financing that contemplates international standards regarding this matter and has designated a responsible person for its implementation,
2.2.2. That it conducts business in the jurisdiction where it is authorized to carry out the financial activity, employs full-time stable personnel at its registered office, maintains a record of operations at its registered office, and is subject to supervision by the authority that authorizes it to conduct the financial business and/or the competent body for that purpose,
2.2.3. That the control authority of the country where the entity to which the account opening is requested is located adheres to the “Basic Principles for Effective Banking Supervision”, published by the Basel Committee on Banking Supervision, and

CORRESPONDENCE ACCOUNTS
B.C.R.A.
Section 2. Request for correspondent service in financial entities - “our
account”.
Validity:
01/08/2010

2.2.4. That said authority applies consolidated supervision assuming the vigilance of liquidity and solvency, as well as the evaluation and control of risks and equity situations in those terms.
The observance of these requirements must be expressed by the foreign financial entity through a written document in the form of a sworn declaration that it will deliver to the local requesting entity, which must keep it available to the Superintendence of Financial and Exchange Entities. Additionally, a special report from an authorized independent auditor of the depositary financial entity must be added regarding that entity having and complying with a Manual for the prevention of money laundering and terrorist financing, that it has designated a responsible person for its implementation, and that it complies with point 2.2.2. Likewise, when the foreign entity has an international risk rating, granted by any of the rating agencies admitted by the regulations on “Evaluation of financial entities”, this information will be added to the records of compliance with the aforementioned requirements. The information listed in this point must be requested again by the requesting entity when modifications occur or, in default, every two years. The total or partial impossibility of complying with any of the aforementioned information requirements will constitute an impediment for the opening and/or maintenance of the correspondence account, and in the latter circumstance, the respective account must be closed. The aforementioned requirements will not be applicable when the correspondence account is opened in a branch or subsidiary located abroad regarding which the financial entity is subject to what is provided in point 5.2.4. of the regulations on “Consolidated supervision”.

CORRESPONDENCE ACCOUNTS
B.C.R.A.
Section 2. Request for correspondent service in financial entities - “our
account”.
Validity:
01/08/2010

3.1. Request for service in branches and subsidiaries of financial entities of the country located abroad.
3.1.1. Participating entities.
Financial entities in the country are authorized to offer the opening of correspondence accounts and the provision of related services to exchange houses in the country only through their branches and subsidiaries located abroad.
3.1.2. Opening and operation. Minimum information to be requested.
The same information requirements and conditions as those listed for financial entities in point 1.2. of these regulations will apply, apart from those required in each jurisdiction of location.
3.1.3. Grounds for account closure.
What is provided in point 1.3. of these regulations will apply.
3.2. Request for service in foreign financial entities.
3.2.1. Participating entities.
Exchange houses in the country are authorized to request the opening of correspondence accounts in foreign financial entities in order to carry out settlement of collections and payments operations in those markets, linked to the activities they are legally and regulationarily authorized to perform. What is provided in the second, fourth, and fifth paragraphs of point 2.1. of these regulations will apply.
3.2.2. Opening and operation of accounts opened in foreign financial entities.
What is provided in point 2.2. of these regulations will apply.

CORRESPONDENCE ACCOUNTS
B.C.R.A.
Section 3. Request for correspondent service by exchange houses -
“our account”.
Validity:
01/08/2010

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE
ORDERED TEXT OF THE REGULATIONS ON
“CORRESPONDENCE ACCOUNTS”
Section Point Paragraph Com. Annex Point Paragraph
Observations
1.1. "A" 5093
1.2. "A" 5093
1.2.1. "A" 5093
1.2.2. "A" 5093
1.3. "A" 5093
1.3.1. "A" 5093
1.3.2. "A" 5093
1.
1.4. "A" 5093
2.1. "A" 5093
2.2. "A" 5093
2.2.1. "A" 5093
2.2.2. "A" 5093
2.2.3. "A" 5093
2.
2.2.4. "A" 5093
3.1. "A" 5093
3.1.1. "A" 5093
3.1.2. "A" 5093
3.1.3. "A" 5093
3.2. "A" 5093
3.2.1. "A" 5093
3.
3.2.2. "A" 5093

The data obtained to fulfill customer due diligence must be updated when unusual operations are detected according to each entity's prudential assessment, when significant transactions are carried out, when relatively significant changes occur in the way accounts are operated, or when, within the risk parameters adopted by the entity, such an update is deemed necessary.

1.6.2. During the course of the contractual or commercial relationship, the following actions must be carried out:

1.6.2.1. Monitoring of operations:

Adopt risk analysis policies within the entity.
Define parameters for each type of client based on their initial profile and in accordance with the risk analysis policies implemented by each entity.
Establish a specific control and monitoring scheme for operations carried out in correspondent accounts opened by financial entities and exchange houses in the country.
In the event that deviations, discrepancies, incoherencies, or inconsistencies are detected, the analysis of the operation(s) must be deepened in order to obtain additional information that corroborates or reverses the situation presented.

1.6.2.2. The unusual or suspicious nature of the operation may also be based on elements such as volume, value, type, frequency, and nature of the operation compared to the client's usual activities.

1.6.2.3. In order to achieve adequate control of the operations carried out by clients, segmentation parameters or any other instrument of similar efficacy must be adopted, by risk levels, by product class, or by any other criterion, that allows identifying unusual operations. For this purpose, adequate levels of technological development must be implemented according to the type and volume of operations of each entity, ensuring the greatest coverage and reach of their control mechanisms.

1.7. Maintenance of a database.

1.7.1. Covered operations.
Information corresponding to the clients defined in point 1.2.2. who carry out operations (considered individually) for amounts equal to or greater than $ 30,000 (or its equivalent in other currencies) must be maintained in a database, for the following concepts:

1.7.1.1. Cash deposits: in checking accounts, savings accounts, fixed-term deposits, and other fixed-term modalities.

1.7.1.2. Deposits constituted with securities, calculated according to their closing quotation value on the day prior to the deposit.

1.7.1.3. Placement of debentures and other debt securities issued by the entity itself.

1.7.1.4. Repos (assets and liabilities).

1.7.1.5. Purchase and sale of securities - public or private - or placement of units in common investment funds.

1.7.1.6. Purchase and sale of precious metals (gold, silver, platinum, and palladium).

1.7.1.7. Cash purchase and sale of foreign currency (includes arbitrage).

1.7.1.8. Remittances or transfers issued and received (operations with other entities in the country and with the abroad), regardless of the form used to process the operations and their destination (deposits, repos, purchase and sale of securities, etc.).

1.7.1.9. Purchase and sale of checks drawn against accounts abroad and traveler's checks.

1.7.1.10. Payment of imports.

1.7.1.11. Collection of exports.

1.7.1.12. Sale of the financial entity's loan portfolio to third parties.

1.7.1.13. Loan amortization services.

1.7.1.14. Early loan cancellations.

1.7.1.15. Establishment of trusts and all types of other fiduciary mandates.

1.7.1.16. Purchase and sale of cancellation checks.

1.7.1.17. Sale of financial payment checks.

1.7.1.18. Operations linked to tourism (sale of tourist packages, hotels, tickets, etc.), provided they are not included in points 1.7.1.7. or 1.7.1.9.

1.7.2. Storage and maintenance of information.
The data of all clients in whose name accounts are opened or operations are registered will be stored.
The storage and maintenance of information will also cover cases of clients who, in the judgment of the intervening entity, carry out linked operations that, although considered individually, do not reach the minimum level established in the first paragraph of point 1.7.1., but collectively exceed or reach that amount.

PREVENTION OF MONEY LAUNDERING
B.C.R.A. AND OTHER ILLEGAL ACTIVITIES
Section 1. Prevention of money laundering.
Version: 4th
COMMUNICATION “A” 5093
Validity:
01/08/2010

1.7.1.1. Cash deposits: in checking accounts, savings accounts, fixed-term deposits, and other fixed-term modalities.

1.7.1.2. Deposits constituted with securities, calculated according to their closing quotation value on the day prior to the deposit.

1.7.1.3. Placement of debentures and other debt securities issued by the entity itself.

1.7.1.4. Repos (assets and liabilities).

1.7.1.5. Purchase and sale of securities - public or private - or placement of units in common investment funds.

1.7.1.6. Purchase and sale of precious metals (gold, silver, platinum, and palladium).

1.7.1.7. Cash purchase and sale of foreign currency (includes arbitrage).

1.7.1.9. Purchase and sale of checks drawn against accounts abroad and traveler's checks.

1.7.1.10. Payment of imports.

1.7.1.11. Collection of exports.

1.7.1.12. Sale of the financial entity's loan portfolio to third parties.

1.7.1.13. Loan amortization services.

1.7.1.14. Early loan cancellations.

1.7.1.15. Establishment of trusts and all types of other fiduciary mandates.

1.7.1.16. Purchase and sale of cancellation checks.

1.7.1.17. Sale of financial payment checks.

1.7.1.18. Operations linked to tourism (sale of tourist packages, hotels, tickets, etc.), provided they are not included in points 1.7.1.7. or 1.7.1.9.

PREVENTION OF MONEY LAUNDERING
B.C.R.A. AND OTHER ILLEGAL ACTIVITIES
Section 1. Prevention of money laundering.
Version: 5th
COMMUNICATION “A” 5093
Validity:
29/06/2010

ORDERED TEXT ORIGIN OF THE NORM Observations
Section Point Paragraph Comm. Point Paragraph
1.1.1. “A” 4353
1.1.2. “A” 4353
1.1.3. "A" 2627 1. 1° According to Com.“A” 4353 and “A” 4459, pt.1.
1.1.4. "A" 2627 1. 2° According to Com.“A” 4971 pt. 19. and 5022
1.1.5. “A” 4459 2. According to Com. “B” 9516
1.2. “A” 4353
1.3.1. "A" 2451 1. and 2. According to Com. “A” 3037 and “A” 4353
1.3.2. “A” 4353 According to Com. “A” 4459, pt. 3.
1.3.3. “A” 4353 According to Com. “A” 4459, pt. 3. and 4.
1.3.4. “A” 4353 According to Com. “A” 4459, pt. 5., 4675, pt. 1,
4835, pt. 2., 4895, pt. 2., 4928 and 5004.
1.3.5. “A” 4353
1.3.6. “A” 4353 According to Com. “A” 4459, pt. 6.
1.4. "A" 2451 3. According to Com. “A” 4353
1.5.1. “A” 4353 According to Com. “A“ 4383, 4459, pt. 7. and
4675, pt. 2.
1° and 2° "A" 2627
"A" 2458
6.
1.
1.5.2. According to Com. “A” 3037, 4353 and 4459, pt. 8.
3° “A” 4675 9.
1.5.2.1. "A" 2458 2. According to Com. “A” 4353
1.5.2.2. "A" 2458 3. According to Com. “A” 4353
1.5.2.3. "A" 2458 4.
1.5.3. “A” 4353
1.5.4. “A” 4353
1.6. "A" 2451 5. According to Com. “A” 3037, 4353 and 5093
1.7.1. "A" 2627 2. 1° According to Com. “A” 3037 and “A” 4353
1.7.1.1 "A" 2627 2.1. According to Com. “A” 3037
1.7.1.2. “A” 3037
1.7.1.3. "A" 2627 2.2.
1.7.1.4. "A" 2627 2.3. According to Com. “A” 3037
1.7.1.5. "A" 2627 2.4. According to Com. "A" 3037 and “A” 4353
1.7.1.6. "A" 2627 2.5. According to Com. "A" 3037
1.7.1.7. "A" 3037
1.7.1.8. "A" 2627 2.6. According to Com. “A” 3037 and “A” 4353
1.7.1.9. "A" 2627 2.7. According to Com. “A” 3037
1.7.1.10. "A" 2627 2.8.
1.7.1.11. "A" 3037
1.7.1.12. "A" 2627 2.9.
1.7.1.13. "A" 2627 2.10.
1.7.1.14. "A" 2627 2.11.
1.7.1.15. "A" 2627 2.12.
1.7.1.16. “A” 3217 1.
1.7.1.17. “A” 3249 3.
1.7.1.18. “A” 4954
1.
1.7.2. “A" 2627 3. According to Com. “A” 3037, 4353 and 4424
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE NORMS ON “PREVENTION OF MONEY LAUNDERING AND OTHER ILLEGAL ACTIVITIES”

1.1. Client file.
1.1.1. Definition of client.
The client will be considered the economic unit receiving the funds or holding a guarantee - contingent liability for the entity - which, in turn, must be the one to apply or obtain benefit from them, regardless of the legal figure adopted to instrument the operation. Resident clients in the country, from the public and private sectors, financial and non-financial, and clients resident abroad will be included. Cases where financial assistance is granted on behalf and order of the head office are excluded.

1.1.2. Opening.
The entity must keep a file for each debtor in its portfolio, as well as for each of its correspondents, in accordance with the provisions of the norms on “Correspondent Accounts”. In the case of credits assigned in favor of the entity without liability for the assignor -the economic unit receiving the funds- the file of the signer, drawer, debtor, co-debtor, or acceptor of the respective instruments, constituted consequently as principal and direct payers, to whom the credits have been imputed, must be opened. The opening of the file will not be mandatory in the case of debtors for public services or credit cards, whose credits are assigned by debtors in preventive bankruptcy. With respect to credits assigned to tranches I and II of the additional margins provided for in the norms on credit risk segmentation (clients linked or not), the borrower must obligate the aforementioned files of the debtors for the credits included in said tranches to be available to the lending financial entity, in the event of a request by the Superintendence of Financial and Exchange Entities.

1.1.3. Content.
1.1.3.1. General concept.
The file must contain all elements that enable correct evaluations regarding the assets, income and expenditure flow, business profitability or the profitability of the project to be financed.

CREDIT MANAGEMENT
B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 3rd
COMMUNICATION “A” 5093
Validity:
01/08/2010

When it is the policy of the financial entity to discriminate the global margin and/or the effectively granted margin -by type or line of loan-, this information must be recorded in the credit file of each client, which must be located in the place where the account is domiciled or the head office, in accordance with the relevant norms. The policy that each entity adopts to define the credit margins it assigns to each client must be approved by its Board of Directors or equivalent authority.

iii) In the case of correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, qualification, credit margins, and any other data linked to that relationship, in accordance with the provisions of the norms on “Correspondent Accounts”.

iv) In the case of loans to individuals with first-degree mortgage guarantee on a home or with first-degree pledge guarantee on 0 km automobiles or light utility vehicles for personal, commercial, or rental use, the credit, legal, and administrative folders will be attached to the debtor's file when the guidelines provided for in the respective origination and administration manuals are observed.

1.1.3.3. Special operations.
a) Of reduced amount.
It will only be required that the file contains the data that allow the identification of the client, in accordance with the norms on “Valid Identification Documents”.

i) Borrowers.
Individuals not linked to the financial entity, insofar as they have not received financing under the terms provided for in point 1.1.3.4., item a).

ii) Individual limit.
The debt capital, at no time, may exceed $ 6,000 per client, under the French or German system modality.

iii) Global portfolio limit.
10% of the entity's computable equity responsibility of the month prior to the one corresponding. This limit will be computable for the purpose of calculating the global limit provided for in point 1.1.3.4., item a), subsection iii), in the case that the entity has also granted financings under that modality (loans for micro-entrepreneurs).

iv) Maximum installment periodicity.
The frequency of installment payment cannot be for a period greater than monthly.

CREDIT MANAGEMENT
B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 9th
COMMUNICATION “A” 5093
Validity:
01/08/2010

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
OBSERVATIONS
1.1.1. “A” 3051
1.1.2. “A” 2729 3. 3.4.1. According to Com. “A” 2950,
4972 (point 2.) and 5093.
“A” 49 I. 3.1.
“A” 2729 3. 3.4.2. 2° According to Com. “A” 2950.
“A” 2729 3. 3.4.2. 8° According to Com. “A” 2950 and 3051.
“A”4972 2.
1.1.3.1.
“A” 3051 i) “A” 2729 3. 3.4.2. 3° According to Com. “A” 2950 and 3051. ii) “A” 2729 3. 3.4.2. 4° and 5° According to Com. “A” 2950 and 4738, pt. 5. iii) “A” 2729 3. 3.4.2. 7° According to Com. “A” 2950 and 5093. 1.1.3.2. iv) “A” 2729 3. 3.4.3. According to Com. “A” 2950. a) “A” 3142 1. According to Com. “A” 3182, 4325, 4556, 4559, 4891 and 4972 (point 2.). 1.1.3.3. b) “A” 4325 3. According to Com. “A” 4559, 4572, 4637, 4891 (point 1.) and 4972 (point 2.).
1.1.3.4. “A” 4891 2.
1.1.4. “A” 2729 3. 3.4.4. According to Com. “A” 2950.
1.1.5. “A” 2729 3. 3.4.5. According to Com. “A” 2950.
1.2.1. “A” 3051
1.2.1.1. “B” 5464
1.2.1.2. “B” 5464
1.2.2. “B” 5464 Last.
1.2.3. “B” 5664 According to Com. “A” 3051.
1.2.4. “C” 18820 According to Com. “B” 8833 and
9063.
1.2.5. “C” 18820 According to Com. “B” 9063.
1.3. “A” 2860 1. 1.1.1. According to Com. “A” 3051.
1° “A” 2573 1. 1° According to Com. “A” 3051.
2° “A” 2573 1. 5°
1.4.1.
3° “A” 2573 1. 6°
1.4.2. “A” 2573 1. 2° According to Com. “A” 3051 and
4522.
1.4.3. 1° “A” 2573 1. 3° According to Com. “A” 3051.
2° “A” 2573 1. 4°
1.4.4. “A” 2573 1. 7°
1° “A” 2573 1. 8°
2° “A” 3051
3° “A” 4972. 2.
1.
1.4.5.
4° “A” 4972. 2.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE
ORDERED TEXT OF THE NORMS ON CREDIT MANAGEMENT

3.3.5. The description of the procedure adopted, when for the purposes of updating the client file the assigned classification is maintained in separate spreadsheets, which allows precise identification of the classification assigned to each client from the spreadsheet to the file and vice versa.

3.3.6. The exercise of the option to entrust external professionals with the classification task.

3.3.7. In the case of adopting specific evaluation methods for the purpose of granting financial assistance under the terms of point 1.1.3.3. b) of Section 1. of the norms on “Credit Management”, the provisions contained in said point must be observed.

3.3.8. The application of criteria more rigorous than the minimum established for the classification of debtors in the consumer or housing portfolio in accordance with what is established in point 7.1. of Section 7. and the description of the procedure adopted, for the purposes of the constitution of provisions for uncollectible risk in relation to what is established in point 2.3. of Section 2. of the norms on “Minimum provisions for uncollectible risk”.

3.3.9. The policy containing the criteria on the basis of which personnel with credit authority in the financial entity may decide to authorize temporarily, including cases where the total assistance margin assigned to each client is exceeded as provided for in point 1.1.3.2. of the norms on Credit Management, overdrafts on bank checking accounts when no limit has been assigned to the client or when they exceed the utilization margins agreed upon for this purpose, without prejudice to the subsequent approval - in each case - of the use of this modality in accordance with point 1.5.5. of said norms.
The manual must be permanently available to the Superintendence of Financial and Exchange Entities.

3.4. Client file.
3.4.1. Opening.
The entity must keep a file for each debtor in its portfolio, as well as for each of its correspondents, in accordance with the provisions of the norms on “Correspondent Accounts”. In the case of credits assigned in favor of the entity without liability for the assignor -the economic unit receiving the funds- the file of the signer, drawer, debtor, co-debtor, or acceptor of the respective instruments, constituted consequently as principal and direct payers, to whom the credits have been imputed, must be opened. The opening of the file will not be mandatory in the case of debtors for public services or credit cards considered for classification purposes having been assigned the respective credits by debtors in preventive bankruptcy.

BORROWER CLASSIFICATION
B.C.R.A.
Section 3. Classification task.
Version: 7th
COMMUNICATION “A” 5093
Validity:
01/08/2010

c) together with the payment receipt, or d) in the absence of the above, at the entity's option, by including this information in any general postal correspondence sent to the client or specific correspondence directed for this purpose. Additionally and within the same deadline, financial entities that provide information services to their clients through the internet (“home banking”) must make known to each client -by the means indicated- the information referred to in this communication. On the other hand, the updated balance of all financings granted -which will include the facilities assigned by all subsidiaries and operational units of the entity- must be available, discriminated by concept, according to the accounting information system used by the entity, in the place where the client's file is domiciled or the head office, if a copy is to be kept there, in accordance with the relevant norms. In the case of non-financial private sector clients, whose debt (for all concepts) plus the amount of the financing requested, at the time of granting this financing, exceeds 2.5% of the entity's computable equity responsibility of the last day of the month prior to the one corresponding or the equivalent to $ 2,000,000, whichever is less, a sworn declaration on whether they have the character of linked parties to the respective financial intermediary or if their relationship with it implies the existence of controlling influence must be maintained in the file, permanently available to the Superintendence of Financial and Exchange Entities. In the case of correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, qualification, credit margins, and any other data linked to that relationship, in accordance with the provisions of the norms on “Correspondent Accounts”. Furthermore, the files must record the analyses carried out as a result of the application of the norms on credit grading.

3.4.3. Annexes.
In the case of loans to individuals with first-degree mortgage guarantee on a home or with first-degree pledge guarantee on 0 km automobiles or light utility vehicles for personal, commercial, or rental use, the credit, legal, and administrative folders will be attached to the debtor's file when the guidelines provided for in the respective origination and administration manuals are observed.

3.4.4. Domicile.
The debtor's file must be kept in the place where the account is domiciled.
It will be admitted that the client's file is located in a place different from the account's domicile (for example: head office or branch that is the seat of regional management), when this has been determined for operational reasons - linked to the evaluation, granting, and monitoring of credits - and this circumstance is included in the “Classification and Provision Procedures Manual”.

BORROWER CLASSIFICATION
B.C.R.A.
Section 3. Classification task.
Version: 5th
COMMUNICATION “A” 5093
Validity:
01/08/2010

BORROWER CLASSIFICATION
ORDERED TEXT ORIGIN OF THE NORM Observations
Sec. Point Para. Comm. Annex Point Para.
3.3. last “A” 2216 I 2. 2º
1º “A” 2216 I 7. 1º According to Com. “A” 5093 “A” 2287 3. last 2º “A” 2216 I 6. 2º 3º “A” 2216 I I.d. 3º 3.4.1.
4º “A” 4972 1.
3.4.2. “A” 467 3º
“A” 2216 I 7.
According to Com. “B” 5644, “A” 2287,
2573, 2932, 4545, 4738, 4781 and
5093. Includes interpretative clarification.
3.4.3. “A” 2563 I II. According to Com. “A” 2677.
“A” 2586 unique II. According to Com. “A” 2677. Explicitates criterion.
1º “A” 2216 I 7. 1º
2° "A" 2216 7. last
3º “A” 2216 I 7. 2º Modified by Com. “A” 2223
(point 1.). last “A” 2563 I II. According to Com. “A” 2677.
3.4.4.
“A” 2586 unique II. According to Com. “A” 2677.
3.4.5. Incorporates criterion not previously disclosed
generally.
3.5. “A” 2216 I 3. 1º
3.5.1. “A” 2216 I 3. 1º
1° “A” 2216 I 3. 1º
2° “A” 2216 I 3. 2º According to Com. “A” 4972 (point 1.).
3° “A” 2216 I 3. 3º Modified by Com. “A” 2223
(point 1.).
3.5.2. last “A” 2216 I 3. last
3.5.3. Incorporates criterion not previously disclosed
generally.
1° “A” 2373 8. and 3. Includes interpretative clarification.
2° “A” 2373 8.
3.
3.6. last “B” 5902 3. Includes interpretative clarification.
4.1. “A” 2216 I 1. 1º
4.2. “A” 2216 I 1. 2º
4.3.1. “A” 2216 I 1. 3º According to Com. "A" 2932 (point 3.).
4.3.2. “A” 2216 I 1. last
4.4. "A" 2932 4.
4.5. "A" 2932 4.
4.
4.6. “A” 3314 8. According to Com. “A” 4529.
5.1. “A” 2216 I 6. 1º
5.
5.1.1. 1° “A” 2216 I I. 1º According to Com. “A” 2410.

CREDIT POLICY B.C.R.A.
Section 5. Financing to residents abroad.
5.1. General criterion.
The granting of financial assistance to residents abroad will only proceed as long as it complies with the general criterion on credit policy indicated in Section 1. Accordingly, credit lines may be granted to banks abroad, whether or not they are correspondents, intended to facilitate local exports. The existence of credits to residents abroad corresponding to settlement lags in operations with securities or foreign currencies with quotation is also admitted.

5.2. Placements in banks abroad.
Financial entities may maintain correspondent accounts and demand accounts in banks abroad for their operations, in accordance with the provisions of the norms on “Correspondent Accounts”.

5.3. Holding of foreign securities.
The holding of public and private foreign securities, including debt securities or participations corresponding to asset portfolios that include foreign securities, as well as Argentine depositary certificates (CEDEAR), may not be registered. The holding of debt securities or participations corresponding to asset portfolios constituted abroad is admitted, provided they are integrated exclusively by national public and/or private securities of the country, as well as “depository receipts” corresponding to said securities. Version: 2nd COMMUNICATION “A” 5093 Validity:
01/08/2010

ORDERED TEXT ORIGIN OF THE NORM OBSERVATIONS
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
1.1. “A” 49
OPRAC-1
I 1.1.
1.2. “A” 4311 Includes concept according to
points 6. and 7.5. of the
Com. “A” 2736. According to Com. “C” 50798 and “A” 4851.
1.
1.3. “A” 49
OPRAC-1
I 1.2.
2.1. “A” 3528 1. According to Com. “A” 4147.
2.1.1. 1º “A” 3528 1.1. According to Com. “A” 4015,
4311, 4423 and 4851.
2.1.2. “A” 4015 1.2. Includes interpretative clarification and Com. “A”
4851.
2.1.3. “A” 4015 1.3.
2.1.4. “A” 4423
2.1.5 “A” 4453 According to Com. “A” 4577.
2.1.6. “A” 4011 1.4. 1º According to Com. “A” 4015,
4311 and 4851.
2.1.7. “A” 4168 1. According to Com. “A” 4465 and
4851.
2.1.8. “A” 4015 1.4. last According to Com. “A” 4311 and
4851.
2.1.9. “A” 3528 1.2. According to Com. “A” 4140 and
4311.
2.1. last “A” 4851 4.
2.2. “A” 4015 1. 2º According to Com. “A” 4311,
4453 and 4577.
2.3. “A” 4015 1. 3º
2.4. “A” 4311
2.5. “A” 4311
1º “A” 3528 1. 2º According to Com. “A” 4015 and 4147.
2.6.
2º and last
“A” 4159 3.1. 5º and last
Section 3. of the reporting regime on
minimum cash and application of resources. Includes interpretative clarification.
2.
2.7. “A” 3528 1. 3° According to Com. “A” 4015,
4140, 4549 and 4716.
3. 3.1. “A” 4140 II 1. 2º
3.2. “A” 4311 Includes concept according to
points 6. and 7.5. of the
Com. “A” 2736.
4. 4.1. “A” 4311
5. 5.1. “A” 4311
5.2. “A” 4311 According to Com. “A” 5093.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE NORMS ON “CREDIT POLICY”

CONSOLIDATED SUPERVISION
B.C.R.A.
Section 5. Compliance with regulations.
5.2.3.1. Existence of written policies and procedures for the prevention of money laundering and terrorist financing framed within international standards, consistent with the specific characteristics of the different activities and consistent with those of the parent house and/or controlling entity.
5.2.3.2. Appointment of an official responsible for implementing the policies and procedures indicated in the previous point and for keeping the highest level of the parent house and/or controlling entity informed on the matter.
5.2.3.3. Existence of an organizational structure with clear definition of roles and responsibilities consistent with that of the parent house and/or controlling entity.
5.2.3.4. Existence of a written procedure for the reporting of unusual or suspicious transactions in accordance with respective legal requirements, and consistent with that of the parent house and/or controlling entity.
5.2.3.5. Whether it has internal audit to evaluate prevention programs and controls consistent with those of the parent house and/or controlling entity and whether its conclusions are analyzed on a consolidated basis.
5.2.3.6. Whether there are staff training programs in the matter, consistent with those of the parent house and/or controlling entity and whether they are complied with.
Financial entities shall arrange the means to obtain information regarding the compliance with the points detailed previously by each of their branches and subsidiaries included, for example, through reports issued by the external and internal auditors of the aforementioned branches and subsidiaries.
5.2.4. The branches abroad of financial entities and their significant subsidiaries, according to what is provided in point 2.1.2. of these regulations, shall observe the regulations on "Correspondence Accounts".
5.3. Applicable criteria.
For the purposes indicated above, the following shall be taken into account:
5.3.1. Monthly consolidation.
The data of the local financial entity, including its branches in the country and abroad, and its significant subsidiaries, shall be taken.
The maximum limits in matters of credit risk fragmentation must be observed at all times on a consolidated basis, that is, considering the operations included of the respective clients in the entities and companies subject to monthly consolidation. Version: 3rd. COMMUNICATION "A" 5093 Validity:
01/08/2010

CONSOLIDATED SUPERVISION
Section Point Paragraph Com. Annex Point Paragraph Observations
5.2.1.6. "A" 4891 8.
5.2.1.7. "A" 2690 unique 6.
5.2.1.8. "A" 2227 unique 5.1.8
. According to Com. "A" 2736.
5.2.2. "A" 2227 unique 5.1. According to Com. "A" 2649. Completed by Com. "A" 2461,
2736 and 2839 and "B" 5902.
5.2.3. "A" 4835 4.
5.2.4. "A" 5093
5.3.1. "A" 2227 unique 5.2.1. According to Com. "A" 2649.
5.3.2. "A" 2227 unique 5.2.2.
5.4.1. "B" 6115 3rd
5.4.2. "A" 2793 unique 3. According to Com. "A" 4698.
5.4.3. "B" 6566 1.
5.
5.5. "A" 2227 unique 5.3. Modified by Com. "A" 2649.

ii) the other non-subordinated obligations are normally attended to, iii) no cash dividends are distributed to shareholders, iv) no fees are paid to directors and auditors, except in cases where they perform executive functions, and v) if they have interest coupons linked to the results of the financial entity, they do not register distributable results, calculated according to the general procedure provided in Section 2. of the regulations on "Distribution of results". Non-compliance with these requirements by the entity will not imply any responsibility for the Central Bank of the Argentine Republic, an aspect that must be expressly stated in the offering prospectuses and in the issued instrument.
7.2.4.5. Purchase and resale. Prohibition.
Financial entities may not purchase for subsequent resale their own issuances of subordinated debt that have been or are considered for the purposes of determining the computable net worth. Nor may they acquire since 1.10.06 issuances made by other financial entities.
7.2.4.6. Concept of subordination.
A debt is considered subordinated with respect to other liabilities when, under equal conditions regarding eventual privileges or among unsecured creditors, the creditor of said debt accepts to grant precedence in the collection of the claim, in the event of the debtor's bankruptcy, to the other liabilities in equal conditions. In the case regulated herein, said character implies the situation described in point 7.2.4.1. iv) above.
7.2.5. Deductible concepts.
7.2.5.1. Balances in correspondence accounts with respect to foreign financial entities that do not have an international risk rating included in the "investment grade" category, granted by any of the rating agencies admitted by the regulations on "Evaluation of Financial Entities".
This deduction will be made for the highest balance in each bank that is registered during the month to which the determination of the computable net worth corresponds. MINIMUM CAPITALS OF FINANCIAL ENTITIES B.C.R.A.
Section 7. Computable net worth.
Version: 3rd. COMMUNICATION "A" 5093
Validity:
01/08/2010

To this end, balances in correspondence accounts registered with respect to the following shall not be deducted:
a) The parent house of local branches of foreign banks or of their branches and subsidiaries in other countries. b) Banks or other foreign financial institutions that exercise control of local financial entities constituted in the form of anonymous societies. c) Other foreign banks authorized to intervene in the regimes of reciprocal payment and credit agreements to which the Central Bank of the Argentine Republic has adhered, as well as their branches and subsidiaries, even if they are not included in those agreements. d) Branches and subsidiaries of local financial entities. e) Balances that, on a temporary and circumstantial basis, originate from client operations, such as those related to foreign trade operations or other type of accreditation ordered by third parties that do not imply net worth responsibility for the entity.
7.2.5.2. Credit instruments (securities, certificates of fixed-term deposits and others) that are not physically in the possession of the entity, unless their registration or custody of registration certificates or paper securities is in charge of:
i) Central Bank of the Argentine Republic, for operations channeled through the Central Registry and Settlement of Public Liabilities and Financial Trusts ("CRYL"). ii) Caja de Valores S.A. iii) Cedel, Euroclear and Depositary Trust Company (DTC). iv) Deutsche Bank, New York. MINIMUM CAPITALS OF FINANCIAL ENTITIES B.C.R.A.
Section 7. Computable net worth.
Version: 3rd. COMMUNICATION "A" 5093
Validity:
01/08/2010

MINIMUM CAPITALS OF FINANCIAL ENTITIES
Section Point Paragraph Com.
Cap./
Annex Point Paragraph
Observations
5.
5.6. "A" 2922 I According to Com. "B" 6523, "A" 4172. Point 5.6.4.5., "A" 3274, "A" 3959, "A"
4180, "A" 4543, "B" 9186, "A" 4874 and
"B" 9516.
6.1. and
6.2.
"A" 2461 unique I and II According to Com. "A" 4172 and 4741.
6.3. and
6.4.
"A" 2461 unique I and II According to Com. "A" 3959 and 4172.
6.5. "A" 2461 unique I and II According to Com. "A" 2736, 2768, 2948,
3959, 4172 and "B" 9074. Point 6.5.2. includes interpretative clarification.
6.6. "A" 2461 unique III According to Com. "A" 3161 and 4172.
6.7. "A" 2461 unique VI According to Com. "A" 4172.
6.
6.8. "A" 2461 unique VII According to Com. "A" 4172.
7.1. "A" 414
LISOL-1
VI 3.1. 1st According to Com. "A" 2279, 2453, 2793, 2914, 3039 and 4172.
7.2.1. "A" 414
LISOL-1
VI 3.1.1. According to Com. "A" 2223, 2227, 4296, (point 2.), 4576 (point 1.) and 4665.
7.2.2. "A" 4576 2. According to Com. "A" 4591 (points 2.,3., 4.
and 5.), 4665 -point 7.2.2.5. includes interpretative clarification- and 4782.
7.2.3. "A" 414
LISOL-1
VI 3.1.2. According to Com. "A" 2223, 2768, 2948, 4172, 4576, 4665, 4702 and "B" 9074.
7.2.4. 1st "A" 414
LISOL-1
VI 3.1.2.2. According to Com. "A" 2264, 4172, 4576 (point 4.) and 4782.
7.2.4.1. and
7.2.4.2.
"A" 414
LISOL-1
VI 3.1.2.2. According to Com. "A" 2264, 4172, 4576 (points 5. and 6.) and 4782.
7.2.4.3. and
7.2.4.4.
"A" 414
LISOL-1
VI 3.1.2.2. According to Com. "A" 2264, 4172 and "A"
4782. In the second paragraph of point
7.2.4.3. incorporates interpretative clarification.
7.2.4.5. "A" 2264 2. According to Com. "A" 4172 and 4576 (point
8.).
7.2.4.6. "A" 414
LISOL-1
VI 3.1.2.2. According to Com. "A" 2264, 4172 and 4665.
"A" 2287 3.1. and
3.3.
7.2.5.1. According to Com. "A" 2890, 4172 and 5093
"A" 2287 3. last According to Com. "A" 4172 and 5093
7.2.5.2. 1st "A" 2497 1. According to Com. "A" 3621 and 4172.
last "A" 2263 2. According to Com. "A" 4172.
1st and last "A" 2287 3.2. According to Com. "A" 4172.
7.
7.2.5.3.
2nd "A" 2474 Procedural regulations on requirement and integration of minimum capitals (point 3.2.7). Modified by Com."A" 4172.

1.3. Responsibilities.
The representative -titular or alternate in charge- is considered as an extension of the represented entity and, in that sense, are jointly and severally liable for the activities that he develops in the country in the exercise of his representation functions, being subject, in case of non-compliance, to the application of the sanctions of art. 41 of the Financial Entities Law.
1.4. Permitted operations.
It is up to the representative to advise and manage guarantees and/or financings with the intervention of the represented entity as guarantor, lender or agent in relation to the issuance and placement of debt in institutionalized markets abroad. Likewise, the representative may manage the opening of correspondence accounts for local financial entities and exchange houses.
1.5. Prohibited operations.
The representative is not allowed to:
1.5.1. Act in his own name on the occasions of the management entrusted to him by the represented entity or use denominations that offer doubts about his nature or character.
1.5.2. Carry out any form of financial intermediation within the terms of the Financial Entities Law.
1.5.3. Carry out actions that enable -directly or indirectly- the capture of financial resources under any modality for himself, for third parties or for the represented entity.
1.5.4. Carry out exchange operations within the terms of Law 18.924 on Exchange Houses, Agencies and Offices.
1.6. Obligations.
1.6.1. Functional independence of the office designated for representation.
The representative's office must have functional independence from other companies. To this end, it must be installed in a premises exclusively used for the activity of representation, which must have its own sufficiently identified entrance. REPRESENTATIVES OF FOREIGN FINANCIAL ENTITIES B.C.R.A. NOT AUTHORIZED TO OPERATE IN THE COUNTRY
Section 1. Activity.
Version: 2nd. COMMUNICATION "A" 5093
Validity:
01/08/2010

Without prejudice to the minimum conditions that are necessary to achieve that functional independence as far as indispensable services for the performance of functions are concerned (electric supply, telephony, water, etc.), the communication means used by the representation cannot be shared.
1.6.2. Advertising and propaganda.
In matters of advertising, the representative must respect the provisions of point 1.2.2., taking into account the prohibition of point 1.5.1.
At the bottom of business papers and printed advertising -with letter height not less than 2 (two) millimeters- as well as on signs located in a prominent place in the premises where the representative develops his activities, the following clarifying legend must be included:
"In accordance with current legislation and regulations, the quality of representative of a foreign financial entity not authorized to operate in the country does not enable the capture of public resources for himself nor for the represented foreign financial entity. The representative is also not authorized to carry out exchange operations within the terms of Law 18.924, on Exchange Houses, Agencies and Offices. Non-compliance related to the improper capture of funds is subject to the application of the sanctions provided for in art. 41 of the Financial Entities Law, while those related to exchange operations will give rise to the application of the Criminal Exchange Regime." REPRESENTATIVES OF FOREIGN FINANCIAL ENTITIES B.C.R.A. NOT AUTHORIZED TO OPERATE IN THE COUNTRY
Section 1. Activity.
Version: 2nd. COMMUNICATION "A" 5093
Validity:
29/06/2010

Sec. Point Para. Com. Annex Cap. Sec. Point Para.
OBSERVATIONS
1.1. "A" 2241 VI 1. 1. According to Com. "A" 4775 pt.
1. and "A" 4981.
1.2. "A" 2241 VI 6. and
9.
9.4. 1st According to Com. "A" 4981.
1.3. "A" 2241 VI 5. According to Com. "A" 4981.
1.4. "A" 2241 VI 7. According to Com. "A" 4981 and
5093.
1.5.1. "A" 2241 VI 8. and
9.
9.4. 2nd and 2nd According to Com. "A" 4981.
1.5.2. "A" 2241 VI 8. 1st According to Com. "A" 4981.
1.5.3. "A" 4981
1.5.4. "A" 2241 VI 8. 1st According to Com. "A" 4981.
1.6.1. "A" 4981
1.
1.6.2. "A" 2241 VI 9. 9.4. 1st and 2nd According to Com. "A" 4981.
2.1. "A" 2241 VI 1. According to Com. "A" 4775 pt.
1. and "A" 4981.
1st "A" 2241 VI 2. According to Com. "A" 4775 pt.
1. and "A" 4981.
2.2.
2nd "A" 2241 VI 3. 3.1. last According to Com. "A" 4775 pt.
1. and "A" 4981.
2.2.1. "A" 2241 VI 3. 3.1. According to Com. "A" 2362, "A"
4775 pt.1., "A" 4835 pt.
5. and "A" 4981.
2.2.2. "A" 2241 VI 3. 3.2. According to Com. "A" 4775 pt.
1. and "A" 4981.
2.3. "A" 4981
2.4. "A" 2241 VI 4. 4.1. 2nd According to Com. "A" 4775 pt.
1. and "A" 4981.
2.5. "A" 2241 VI 4. 4.1. 1st According to Com. "A" 3700 pt.
3., "A" 4775 pt. 1. and "A"
4981.
2.
2.6. "A" 2241 VI 4. 4.2. According to Com. "A" 4775
pt. 1. and "A" 4981.
3.1. "A" 4981
3.
3.2. "A" 2241 VI 10. According to Com. "A" 4981.
4.
"A" 2241 VI 3. 3.3. 1st and 2nd According to Com. "A" 3700 pt.
2. and "A" 4981.
5.1. "A" 2241 VI 9. 9.1.1.
and
9.1.2.
According to Com. "A" 4775 pt.
1. and "A" 4981.
5.
5.2. "A" 2241 VI 9. 9.1.3. According to Com. "A" 2822 pt.
1., "A" 4775, pt. 1. and "A"
4981.
6.
"A" 2241 VI 3. 3.1. and
3.2. last According to Com. "A" 4775 pt.
1. and "A" 4981.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON "REPRESENTATIVES OF FOREIGN FINANCIAL ENTITIES NOT AUTHORIZED TO OPERATE IN THE COUNTRY"

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