Circular RUNOR 1 - 1160: Proceedings and Sanctions under Article 41 of Law 21.526. Modifications.

"2015 - YEAR OF THE BICENTENNIAL OF THE CONGRESS OF THE FREE PEOPLES" COMMUNICATION "A" 5838 21/11/2015 TO FINANCIAL ENTITIES, TO EXCHANGE HOUSES, AGENCIES, OFFICES AND BROKERS, TO NON-FINANCIAL COMPANIES ISSUING CREDIT CARDS, TO CREDIT PORTFOLIO ADMINISTRATORS OF EX-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 COMPANIES ISSUING PURCHASE CARDS, TO VALUABLES TRANSPORT COMPANIES:
Ref.: Circular
RUNOR 1 - 1160
Proceedings and sanctions in the summaries provided for in article 41 of Law 21.526.
Modifications.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:

"1. Revoke points 2.3. and 2.4. of the norms on "Proceedings and sanctions in the summaries provided for in article 41 of Law 21.526".
2. Incorporate points 2.3. to 2.12. into the norms on "Proceedings and sanctions in the summaries provided for in article 41 of Law 21.526" which are attached in the Annex and form part of this communication.
3. Establish that the provisions incorporated through points 1. and 2. above shall apply to infractions committed from the effective date of this communication."

Likewise, we inform you that we will subsequently send you the sheets that, in replacement of those previously provided, must be incorporated into the referenced norms as a consequence of the measure adopted.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC

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Darío C. Stefanelli Juan C. Isi
Principal Manager of Issuance and
Regulatory Applications
General Deputy Manager of Regulations

ANNEX

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-Index
Section 1. Procedure for the processing of summaries with opening resolution issued from 03/09/98.
1.1. Scope of application.
1.2. Initiation and processing of the summary.
1.3. Public disclosure of resolutions that conclude summary processes processed by the Central Bank under article 41 of Law 21.526.
1.4. Attorneys.
1.5. Domicile.
1.6. Notifications.
1.7. Terms.
1.8. Evidence.
1.9. Exceptions.
1.10. New charges or modification of charges.
1.11. Report and final resolution.
Section 2. Sanctions.
2.1. Resolution stage.
2.2. Admissible appeal routes.
2.3. Classification of infractions.
2.4. Sanctions.
2.5. Criteria for the application of sanctions.
2.6. Graduation of fines.
2.7. Recidivism.
2.8. Limitation on fine sanctions for infractions that are not very serious.
2.9. Nature of the norm.
2.10. Adjustment of amounts.
2.11. Legal persons.
2.12. Natural persons.
Section 3. Payment facilitation regime for debtors of fines imposed in summaries.
Correlation table.
B.C.R.A.
Index and Section 2. of the norms on "Proceedings and sanctions in the summaries provided for in article 41 of Law 21.526".
Annex to
Comm. "A"
5838

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2.3. Classification of infractions according to their magnitude.
The infractions detailed below are classified as very serious, very grave, grave, moderate, and minor. For the purpose of defining their severity, the magnitude of the breached provision will be considered.

2.3.1. Very serious infractions.
Marginality.
2.3.1.1. Marginal capture of funds in a habitual manner through off-book deposits within authorized entities.
2.3.1.2. Carrying out operations that imply habitual intermediation between the supply and demand of financial resources, without prior authorization from the BCRA.
2.3.1.3. Marginal exchange operations within entities authorized by the BCRA.
Prohibited and limited operations.
2.3.1.4. Carrying out operations not permitted for each class of entity and which seriously exceed the authorization granted by the BCRA.
Accounting records that do not reflect the real patrimonial, economic, and financial situation of the entity.
2.3.1.5. Serious irregularities aimed at hiding that the entity does not fully meet the minimum capital requirements.
2.3.1.6. Serious lack of truthfulness in accounting records, unregistered operations, and/or accounting registration of non-genuine or non-existent operations.
Obstruction of supervision tasks.
2.3.1.7. Seriously hindering or obstructing the initiation and development of audits and/or hindering the BCRA's verification procedure tasks.

2.3.2. Very grave infractions.
Marginality.
2.3.2.1. Significant shortages or surpluses of valuables detected during an audit carried out by the BCRA.
Prohibited or limited operations.
2.3.2.2. Acceptance of its own shares as collateral by financial entities.
2.3.2.3. Activity in a premises without functional independence from other companies and/or in an administrative office not authorized for this purpose.

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2.3.2.4. Constitution of liens on its assets without the authorization of the Central Bank of the Argentine Republic referred to in Section 2 of the norms on "Allocation of assets as collateral".
2.3.2.5. Exploitation on its own account of commercial, industrial, agricultural, or other types of companies by financial entities.
2.3.2.6. Operations with the directors and administrators of the financial entity or with companies or persons linked under more favorable conditions than those ordinarily agreed upon with its clientele.
2.3.2.7. Exchange operations on days and hours not authorized for this purpose.
2.3.2.8. Prohibited operations by Decree No. 62/71, transgressing the provisions contained in Circular RUNOR - 1, Chapter XVI.
2.3.2.9. Carrying out exchange operations in periods not authorized due to non-compliance with regulations linked to information regimes, such as OPECAM.
Obstruction to supervision tasks.
2.3.2.10. Refusal to grant access to its accounting, books, correspondence, documents, and papers to SEFyC officials.
Accounting records that do not reflect the real patrimonial, economic, and financial situation of the entity.
2.3.2.11. Significant insufficiency of provisions due to incorrect classification of debtors or overvaluation of the loans item by financial entities due to the failure to constitute provisions in accordance with the respective regulations.
2.3.2.12. Overvaluation of equity.
Credit norms.
2.3.2.13. Financing of the non-financial public sector without BCRA authorization for this purpose by financial entities.
2.3.2.14. Irregularities in export pre-financing operations.
Non-compliance with technical relationships not declared by financial entities.
2.3.2.15. Regarding the norms on assistance to related parties.
Non-compliance with SEFyC instructions.
2.3.2.16. Failure to comply with indications formulated by the auditors appointed in the financial entity.
2.3.2.17. Non-compliance with BCRA instructions and failure to comply with orders to cease and desist issued by SEFyC.

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Norms on minimum external audits.
2.3.2.18. Serious irregularities detected not included or not mentioned in Audit reports.
2.3.2.19. Audit procedures not performed or performed deficiently on significant aspects.
Norms on internal control and/or internal audit.
2.3.2.20. Repeated absence of relevant working papers regarding reports on internal control and internal audit.
2.3.2.21. Serious irregularities detected not included or not mentioned in audit reports.
2.3.2.22. Audit procedures not performed or performed deficiently on significant aspects.
Deposit guarantee insurance system.
2.3.2.23. Non-compliance with the norms on "Application of the deposit guarantee insurance system".
Norms on expansion of financial entities.
2.3.2.24. Opening or closing of branches, dependencies, and installation of ATMs without prior authorization or knowledge of the BCRA.
Share transfers and/or relating to the appointment of executives and/or officials.
2.3.2.25. Holding the position of Director and/or General Manager in a financial entity without prior authorization from this Central Bank.
2.3.2.26. Non-compliance with norms on share transfers.
2.3.2.27. Non-compliance with the disqualifications of article 10 of the Financial Entities Law.
Formal infractions.
2.3.2.28. Non-compliance with the conservation of documentation of exchange operations.
2.3.2.29. Use of denominations provided for in the Financial Entities Law or in the Exchange Houses, Agencies, and Offices Law by unauthorized natural and/or legal persons that induce doubts and/or confusion regarding their nature.
Norms on "Prevention of money laundering, terrorist financing, and other illicit activities".

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2.3.2.30. Non-compliance with norms on prevention of money laundering, involving failure to apply customer knowledge provisions and/or incomplete or non-existent files and/or inadequate internal control environment.
Distribution of results.
2.3.2.31. Distribution of results generating non-compliance with capital requirements.
2.3.2.32. Distribution of results without prior BCRA authorization or through diversion of funds via non-genuine operations.
Protection of financial services users.
2.3.2.33. Repeated contractual or regulatory non-compliance related to the charging of commissions and/or fees.
Non-compliance involving tricks aimed at evading regulations issued by the Central Bank of the Argentine Republic.
2.3.2.34. Regarding the norms on "Credit management" concerning "significant financings".
2.3.2.35. Regarding the norms on "Credit risk fragmentation".
2.3.2.36. Regarding the norms on "Minimum cash".
2.3.2.37. Regarding the norms on "Minimum capital of financial entities".
2.3.2.38. Regarding the norms on "Net global foreign currency position" and "General Exchange Position".

2.3.3. Grave infractions.
Credit norms.
2.3.3.1. Credit portfolio concentration by financial entities.
2.3.3.2. Non-compliance with norms on "Credit assistance to non-financial credit suppliers" by financial entities.
2.3.3.3. Non-compliance by financial entities with norms on "Credit line for productive investment".
Non-compliance with technical relationships not declared by financial entities.
2.3.3.4. Regarding the norms on "Minimum capital of financial entities".
2.3.3.5. Regarding the norms on "Credit risk fragmentation".
2.3.3.6. Regarding the norms on "Credit graduation".
2.3.3.7. Regarding the norms on "Minimum cash".

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2.3.3.8. Regarding minimum norms on external audits.
2.3.3.9. Regarding the norms on "Net global foreign currency position" and "General Exchange Position".
Information Regime.
2.3.3.10. Lack and/or serious deficiencies in the integration of information regimes required by current regulations.
2.3.3.11. Omission to inform about related persons.
2.3.3.12. Non-compliance with information that representatives of foreign financial entities not authorized to operate in the country must present.
Debtors Central.
2.3.3.13. Commission of a significant number of errors in Debtors of the Financial System in the declaration of the debtors' situation.
2.3.3.14. Non-compliance with norms on reclassification of debtors.
Passive operations by financial entities.
2.3.3.15. Repeated non-compliance with provisions on bank current accounts and check regime.
2.3.3.16. Revealing the passive operations they carry out, except when there is a request from a competent authority.
Norms on internal control and/or internal audit.
2.3.3.17. Non-compliance with minimum norms on internal control systems and internal audit in financial entities.
Norms on expansion of financial entities.
2.3.3.18. Non-compliance with norms on constitution or functioning of entities, branches, dependencies, and ATMs.
Share transfers and/or relating to the appointment of executives and/or officials.
2.3.3.19. 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.
Security measures.
2.3.3.20. Serious non-compliance with minimum security measures regulated by the BCRA.
2.3.3.21. Non-compliance that removes and/or diminishes the effectiveness of systems, devices, or services normatively implemented to prevent the commission of criminal acts.

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Formal infractions.
2.3.3.22. Significant delays in accounting, corporate, and exchange books.
2.3.3.23. Exchange slips: deficiencies in their integration and/or lack of mention of the cause of their cancellation. Lack of numbering, amendments, and/or strikethroughs.
2.3.3.24. Inadequate registration in accounting books that do not reflect economic reality.
2.3.3.25. Not maintaining exchange entities in the authorized premises, available to the BCRA, the documentation related to exchange operations.
2.3.3.26. Omission of the obligation to keep books at the entity's headquarters.
Norms on "Prevention of money laundering, terrorist financing, and other illicit activities".
2.3.3.27. Deficient preparation of the money laundering prevention manual.
Protection of financial services users.
2.3.3.28. Non-compliance related to the charging of commissions and/or fees for the use of financial products and services considered basic.
2.3.3.29. Contractual or regulatory non-compliance related to the charging of commissions and/or fees for the use of other financial products and services.
2.3.3.30. Other non-compliance with requirements established in the norms on "Protection of financial services users".
2.3.3.31. Exceeding the maximum financing rates established by the BCRA for different loan lines and/or non-compliance with norms on minimum rates for deposits.
2.3.3.32. Non-compliance with provisions contained in the norms on "Savings deposits, salary accounts, universal free accounts, and special accounts".
2.3.3.33. Non-compliance related to the exposure and advertising of the total financial cost.
Obstruction to supervision tasks.
2.3.3.34. Unjustified delays or repeated sending of incomplete documentation in response to BCRA requests.
Others.
2.3.3.35. Non-compliance with interbank banknote clearing norms.

2.3.4. Moderate infractions.
Credit norms.
2.3.4.1. Non-compliance with norms on "Credit policy".
Non-compliance with technical relationships not declared by financial entities.
2.3.4.2. Regarding the norms on "Liquidity coverage ratio".
Information Regime.
2.3.4.3. Repeated late submission of information regimes.
2.3.4.4. Non-compliance with Information Regimes. OPCAM and/or LAVD bases: erroneous information, omissions, and/or incorrect integration.
Passive operations of financial entities.
2.3.4.5. Non-compliance with regulatory provisions on deposits and other term investments.
2.3.4.6. Non-compliance with provisions on bank current accounts and check regime.
2.3.4.7. Non-compliance with provisions on savings account deposits and other demand deposits.
Share transfers and/or relating to the appointment of executives and/or officials.
2.3.4.8. Non-compliance with norms relating to the appointment of executives and officials.
Security measures.
2.3.4.9. Non-compliance with security measures not classified as serious.
Formal infractions.
2.3.4.10. Inadequate registrations in exchange books.
2.3.4.11. Debtor files with formal deficiencies that do not alter correct credit policy.
Norms on "Prevention of money laundering, terrorist financing, and other illicit activities".
2.3.4.12. Irregularities in the communication of the appointment of the Anti-Money Laundering Officer or members of the Anti-Money Laundering Committee.
Norms on internal control and/or internal audit.
2.3.4.13. Non-compliance with minimum norms on internal control systems and internal audit in exchange entities and other regulated subjects.

2.3.5. Minor infractions.
Minor infractions constitute non-compliance that does not constitute very serious, very grave, grave, or moderate infractions.

Non-compliance that, although not expressly mentioned in the preceding points, bears similarity to any of the infractions provided for therein, will be considered very serious, very grave, grave, moderate, or minor, as appropriate.

2.4. Sanctions.
Legal persons.
2.4.1. For the commission of very serious infractions, the following sanctions will be imposed:
2.4.1.1. Fine, which will be the greater of the following:
i) Between 10% and 15% of the amount of operations carried out in violation (if that amount is expressed in foreign currency, its quotation at the time of application of the sanction will be taken). ii) Between $ 25,000,000 and $ 45,000,000. iii) In cases where the benefit generated for the offender and/or the damage caused to third parties can be established and expressed in monetary terms, the amount of the fine will be equal to 150% of said amount. The amounts mentioned in the preceding subsections will be calculated in accordance with what is established in point 2.6.
2.4.1.2. Together with the preceding fine, it will be analyzed whether it is appropriate to apply the revocation of the authorization to operate for the entity in the case of financial entities, exchange entities, and other subjects authorized by the Central Bank.
This analysis will be carried out by interpreting the infractions described in point 2.3.1. as very serious, being the general rule that upon the occurrence of any of them, revocation of the authorization to operate corresponds.

2.4.2. For the commission of very grave infractions, a fine will be imposed, which will be the greater of the following:
2.4.2.1. Between 5% and 10% of the amount of operations carried out in violation (if that amount is expressed in foreign currency, its quotation at the time of application of the sanction will be taken).
2.4.2.2. Between $ 15,000,000 and $ 25,000,000.
2.4.2.3. In cases where the benefit generated for the offender and/or the damage caused to third parties can be established and expressed in monetary terms, the amount of the fine will be equal to 150% of said amount.
2.4.2.4. Regarding the non-compliances identified as 2.3.2.31. and 2.3.2.32. (distribution of results), a fine sanction equal to the amount of the distribution will be applied.
2.4.2.5. Regarding the non-compliance identified as 2.3.2.38. (non-compliance with norms on "Net global foreign currency position"), the fine will be equal to 150% of the estimated gain from exchange rate differences on the excess in the position.
The amounts mentioned in the preceding subsections will be calculated in accordance with what is established in point 2.6.

2.4.3. For the commission of grave infractions, a fine will be imposed, which will be the greater of the following:
2.4.3.1. Between $ 5,000,000 and $ 15,000,000.
2.4.3.2. In cases where the benefit generated for the offender and/or the damage caused to third parties can be established and expressed in monetary terms, the amount of the fine will be equal to 150% of said amount.
2.4.3.3. Regarding the non-compliance identified as 2.3.3.31. (excess to maximum financing rates and/or non-compliance with norms on minimum rates for deposits), the fine will be equal to 150% of the profit obtained.
The amounts mentioned in the preceding subsections will be calculated in accordance with what is established in point 2.6.

2.4.4. For the commission of moderate infractions, a fine will be imposed, which will be the greater of the following:
2.4.4.1. Between $ 1,000,000 and $ 5,000,000.
2.4.4.2. In cases where the benefit generated for the offender and/or the damage caused to third parties can be established and expressed in monetary terms, the amount of the fine will be equal to 150% of said amount.
The amounts mentioned in the preceding subsections will be calculated in accordance with what is established in point 2.6.

2.4.5. For the commission of minor infractions, the following will be imposed:
2.4.5.1. A fine between $ 150,000 and $ 1,000,000, calculated in accordance with what is established in point 2.6.; or
2.4.5.2. A warning; or
2.4.5.3. A reprimand.

Natural persons.
Independently of the sanction that, if applicable, corresponds to be imposed on the infringing legal person for the commission of very serious, very grave, grave, moderate, and minor infractions, the following sanctions will be imposed on the natural persons who are found responsible for the infraction:

2.4.6. Very serious infractions.
2.4.6.1. The fine provided for in point 2.4.1. calculated in accordance with what is established in point 2.6. for natural persons.

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2.4.6.2. Disqualification under the terms of Article 41, item 5 of the Financial Entities Law, permanent or temporary, in the latter case for a term not exceeding six (6) years. The sanction will imply disqualification from performing all functions and/or qualities mentioned in the cited article.
2.4.7. Very serious infractions.
2.4.7.1. The fine provided for in point 2.4.2. calculated in accordance with what is established in point 2.6. for natural persons.
2.4.7.2. Disqualification under the terms of Article 41, item 5 of the Financial Entities Law, permanent or temporary, in the latter case for a term not exceeding six (6) years. The sanction will imply disqualification from performing as promoter, founder, director, administrator, member of supervisory boards, trustee, liquidator, manager, and auditor of the entities covered by the Financial Entities Law and Law 18.924.
2.4.8. Serious infractions.
The fine provided for in point 2.4.3. calculated in accordance with what is established in point 2.6. for natural persons.
2.4.9. Moderate infractions.
The fine provided for in point 2.4.4., calculated in accordance with what is established in point 2.6. for natural persons.
2.4.10. Minor infractions.
The following will be imposed:
2.4.10.1. the fine provided for in point 2.4.5., calculated in accordance with what is established in point 2.6. for natural persons; or
2.4.10.2. warning; or
2.4.10.3. reprimand.
2.5. Definition of the weighting factors provided for in Article 41 of the Financial Entities Law.
The sanctions to be applied for the commission of the infractions mentioned in points 2.4.1. to 2.4.10. will be determined based on the criteria established in the third paragraph of Article 41 of the Financial Entities Law, which are defined conceptually below.
2.5.1. To weight the "magnitude of the infraction," the relevance of the unfulfilled norm within the system of norms regulating financial activity will be taken into account.
2.5.2. Harm caused to third parties.
For these purposes, the monetary sums that, for any concept, within the characteristics of the infringing conduct, the summarized entity failed to pay to this Institution, to natural persons, or to legal persons that had a relationship with the summarized entity will be taken into account.

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2.5.3. Benefit generated for the infringer.
The verification of the benefit obtained by reason of the configuration of the infraction, both for the financial entity and for the natural persons responsible for the transgression or for the natural persons or legal persons linked to them in accordance with the rules of the Central Bank, will be attended to, determining the monetary amount of said benefit in each particular case.
2.5.4. Operational volume of the infringer.
Its measurement is reserved to fix the sanction in proceedings ordered when the exercise of unauthorized financial intermediation is detected.
2.5.5. Computable Patrimonial Responsibility (RPC) of the entity.
For the purpose of determining the fine, the RPC reported by the financial entity to this Institution at the time the sanction is graduated or the higher declared during the entire period in which the infringing facts occurred, whichever is greater, may be considered.
2.6. Graduation of fines.
For the purpose of graduating the fines to be imposed, what is provided in this point will be verified.
In point 2.11. the matrix for the calculation of fines on legal persons (financial entities, currency entities, other entities under the regulation of the Central Bank, and finally, legal persons not subject to the regulation of the Central Bank) is included. In point 2.12. the matrix for the calculation of fines on natural persons (including subjects with relevant functions in financial and currency entities and other subjects under the regulation of the Central Bank, representatives of foreign financial entities not authorized to operate in the country, external auditors, employees of the financial system, and other natural persons) is included.
2.6.1. Objective weighting factors.
Without prejudice to other circumstances that may result from consideration in each particular case, for the purpose of graduating sanctions, the following will be considered as objective factors for the weighting of conduct and facts:
2.6.1.1. Mitigating factors:
a) Acknowledgment of the facts prior to the opening of the proceeding. b) Acknowledgment and cooperation after the opening of the proceeding. c) Clear demonstration of the proper functioning of internal controls.
2.6.1.2. Aggravating factors:

-13- a) Commission with deliberate knowledge. b) Obtaining gains or benefits for the entity or related parties. c) Harm caused to third parties or the market. d) Antecedents. e) Previous warnings from the BCRA. g) Duration of the infringing period. h) Continuation of the infraction after being warned by the BCRA. i) Impact on the entity and/or the financial system. j) Number of charges or infractions.
2.6.2. The legal or natural person will be placed in the situation applicable to them in accordance with what is indicated in the tables of points 2.11.1. or 2.12.1., as appropriate, based on the following criteria:

• Operational volume.
• Computable Patrimonial Responsibility of the entity.
• Development of relevant functions (subject to authorization and/or rules of probity, disqualification, suitability, and experience).
• Development of tasks within or outside activities regulated by the Central Bank.
• Special participation in the facts.
  2.6.3. To calculate the fine, its initial graduation point will be determined first. For this, the percentages provided for in the relevant categories of the tables of points 2.11.1. or 2.12.1., depending on whether they are legal or natural persons, will be applied between the minimum and maximum of the fine established according to the type of sanction in question. In such a way that the minimum fine provided for the sanction is equivalent to a weight of 0%, ascending to 100% for the maximum.
  In the cases established in points 2.4.1.1.iii), 2.4.2.3. to 2.4.2.5., 2.4.3.2., 2.4.3.3. and 2.4.4.2., in which no maximum and minimum are established, the amount resulting from what is fixed in those points will be taken.
  2.6.4. The aggravating and mitigating circumstances of the conduct that led to the commission of the infraction will be weighted, with the existing and proven elements in the proceeding, in accordance with what is provided in points 2.11.2. or 2.12.2., as appropriate.
  For these purposes, each of the aggravating and mitigating circumstances will be considered within a scale of 0 to 4. The degrees of the scale of each of the aggravating and mitigating factors will in turn be multiplied by the factor provided for in the "Weight" column. The percentage obtained, which may be positive or negative, will be added to the percentage result obtained from point 2.6.2.
  2.6.5. Aggravating conduct will be cumulative.

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The percentage result obtained from the application of points 2.6.2. and 2.6.3., based on what is provided in points 2.11.1. or 2.12.1., must be increased as exposed in points 2.11.3. or 2.12.3., as appropriate. Consequently, the percentages on the minimums and maximums established for each category of sanction may exceed the indicated upper or lower limits, depending on whether aggravating or mitigating circumstances and accumulation factors that raise or lower these indicated limits are verified.
2.6.6. With respect to natural persons and for the purpose of applying the different sanctions, the time span of performance within the entity, with respect to the total of the infringing period in case they do not coincide, will be taken into account.
For the purpose of applying the disqualification sanction established in item 5 of Article 41 of the Financial Entities Law, its appropriateness will be analyzed in cases of non-compliance considered very serious and very grave. All weighting factors provided for in this regulation will be taken into account for the purpose of determining the gravity of the non-compliance and the consequent application of the disqualification sanction.
2.6.7. Plurality of charges: when more than one infraction has been imputed, the scale corresponding to the most serious non-compliance will be applied, with the rest of the non-compliances subsumed in the most serious one, without prejudice to the aggravating factors provided in points 2.11.2. and 2.12.2. for the number of charges or infractions imputed in the proceeding.
2.7. Recidivism.
2.7.1. Those sanctioned by 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%.
The application of the increases for recidivism is not covered by the limitations of points 2.8 and 2.9.
2.7.2. When applying the disqualification sanction to natural persons, special weight will be given to whether they are recidivists.
2.8. Limitation on fine sanctions for cases of infractions that are not very serious.
2.8.1. Limitation of the fine amount in the case of legal persons.
2.8.1.1. The fine to be applied to financial entities (except when it comes from very serious or very grave infractions) may not exceed the capital position at the time of application of the sanction.
2.8.1.2. In the case of currency entities, the fine (except when it comes from very serious infractions) may not exceed 75% of its RPC at the time of application of the sanction or the last reported in the case of revoked entities.

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2.8.1.3. For other legal persons, the fine (except when it comes from very serious infractions) may not exceed 75% of its net worth at the time of application of the sanction.
The fine will not be subject to the limitation mentioned above when a significant decrease in the RPC of the financial or currency entity, due to causes directly attributable to it, coincided with the beginning or development of the infringing periods.
2.8.2. Limitation of the final amount of the fine in the case of natural persons.
The initial graduation amount of the fine calculated in accordance with what is provided in points 2.6.2. and 2.6.3. to be applied to each of the natural persons individually may in no case exceed:
a) For very serious infractions: the minimum of the fine scale provided for very grave sanctions mentioned in point 2.4.2.2. ($ 15 million), b) For the rest of the infractions: the minimum of the fine scale provided for serious sanctions mentioned in point 2.4.3.1. ($ 5 million). The limits for natural persons are the same regardless of whether they work in a financial entity, currency entity, or another regulated subject. To the amounts thus calculated, the values resulting from considering the aggravating factors contemplated in points 2.6.4. and 2.6.5. will be added.
2.9. Nature of the norm.
In cases where the circumstances justify it, the resolving instance may apply criteria that depart from what is provided in this norm, mitigating or aggravating the sanctions in a well-founded manner. This norm, and in particular the matrices of points 2.11. and 2.12., constitutes a tool to determine the gravity of non-compliances and a parameter for orientation for the graduation of sanctions. It does not replace the judgment made by the authority that applies the sanction within its powers. Individual cases may have characteristics that do not fit within the norm and the matrix, which will not limit in any way the discretion of the deciding authority in the matter.
2.10. Adjustment of amounts.
The amounts stated in points 2.4.1. to 2.4.5. and in point 2.11.1. will be modified automatically on June 30 of each calendar year applying the variation of the assets-liabilities of financial entities, recorded in the information available on May 31 of each year.

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2.11. Legal persons.
2.11.1. Weight to be applied to the sanctioned.
Legal Persons
Percentage of the range from which to start for applying the fine Financial entities (amounts in millions of pesos)

• RPC greater than 5,000 75%
• RPC from 1,000 to 5,000 65%
• RPC from 400 to less than 1,000 55%
• RPC less than 400 45%
  Currency entities (amounts in millions of pesos)
• RPC greater than 4 40%
• RPC from 1 to 4 25%
• RPC less than 1 10%
  Value carriers 45%
  Other regulated subjects 35%
  Other subjects not regulated by the Central Bank for unauthorized financial intermediation 85% Note: in the case of revoked, liquidated, absorbed, or merged entities, the last RPC reported is taken.

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2.11.2. Weight of aggravating and mitigating circumstances.
0 1 2 3 4
Weight a
Commission with deliberate knowledge
In an excusable way it could not know the fact It should have known There are indications that it knew the fact Probably had knowledge Deliberate knowledge 3 b Obtaining of gains or benefits for oneself, for the entity or related and/or associates

• -
  Potentially there could have been benefits
  There was an indirect benefit
  There was a direct benefit
  4 c
  Harm caused to third parties or the market

Potentially there were harms to the market in general Probably there was harm There are victims 3 d Antecedents - - Antecedent not linked to the case Antecedent linked to the case Very serious or serious antecedents 3 e Previous warnings from BCRA - Informal indications accredited Formal indication Identification in the Inspection Memorandum Identification in the Inspection Memorandum and commitment to remediation 1 f Duration of the infringing period - Less than 16 days From 16 days to 2 months From 2 to 9 months Greater than 9 months 2 g Continuation of the infraction after being warned by the BCRA

• • • • Yes 2
        h
        Impact on the entity and/or the financial system - Probable impact on the entity There is impact on the entity but does not affect the financial system Moderate impact on the FS and public perception of the image of the FS Substantial impact on the FS and public perception of the image of the FS 5

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Number of charges or infringing facts

• 1 Between 2 and 4
  Between 4 and
  6
  Greater than 6 2 j
  Acknowledgment of the facts prior to the opening of the proceeding
• • Yes
    Yes, with waiver in the defense of the proceeding -5 k Acknowledgment and cooperation after the opening of the proceeding - Acknowledgment of the facts Acknowledgment of the facts and contributions to the investigation Mediates acknowledgment of the facts, concrete contributions to the investigation and waiver with commitment to payment of the sanction -2 Factor of application on point 2.11.1. Increase discount Up to 0 -20% More than 0 up to 25 0% More than 25 up to 50 10% More than 50 up to 75 20% More than 75 30%
    2.11.3. Accumulation of aggravating factors by coincidence of maximum values of point 2.11.2.
    Accumulation of aggravating factors Increase b + c 20% b + h 20% c + h 20% b + c + d 35% b + c + h 35% b + c + d + h 50%

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2.12. Natural persons.
2.12.1. Weight to be applied to the sanctioned.
By direction responsibility
Financial entities/Other unregulated subjects
Currency entities/Other regulated subjects
Natural persons in cases of unauthorized intermediation or abuse of authorization conferred in entities or subjects regulated by the BCRA. 85% 85% Promoters, founders, directors, administrators, counselors, members of supervisory boards, trustees, liquidators, representatives of foreign financial entities 55% 25% General Manager, Deputy General Managers, Internal Auditors and External Auditors 50% 20% Managers and officials with equivalent responsibility 45% 15% Employees and other natural persons not authorized and/or certified 40% 10%
2.12.2. Weight of aggravating and mitigating circumstances.
0 1 2 3 4
Weight a
Commission with deliberate knowledge
In an excusable way it could not know the fact It should have known There are indications that it knew the fact Probably had knowledge Deliberate knowledge 3 b Obtaining of gains or benefits for oneself, for the entity or related and/or associates

• -
  Potentially there could have been benefits
  There was an indirect benefit
  There was a direct benefit
  4 c
  Harm caused to third parties or the market

Potentially there were harms to the market in general Probably there was harm There are victims 3 d Antecedents - - Antecedent not linked to the case Antecedent linked to the case Very serious or serious antecedents 3 e Previous warnings from BCRA - Informal indications accredited Formal indication Identification in the Inspection Memorandum Indentification in the Inspection Memorandum and commitment to remediation 1 f Duration of the infringing period - Less than 16 days From 16 days to 2 months From 2 to 9 months Greater than 9 months 2

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Factor of application on point 2.12.1.
Increase discount
Up to 0 -20%
More than 0 up to 25 0%
More than 25 up to 50 10%
More than 50 up to 75 20%
More than 75 30%
2.12.3. Accumulation of aggravating factors by coincidence of maximum values of point 2.12.2.
Accumulation of aggravating factors Increase b + c 20% b + h 20% c + h 20% b + c + d 35% b + c + h 35% b + c + d + h 50% g Continuation of the infraction after being warned by the BCRA

• • • • Yes 2
        h
        Impact on the entity and/or the financial system - Probable impact on the entity There is impact on the entity but does not affect the financial system Moderate impact on the FS and public perception of the image of the FS Substantial impact on the FS and public perception of the image of the FS 5 i Number of charges or infringing
• 1 Between 2 and 4 Between 4 and 6 Greater than 6 2
  j
  Acknowledgment of the facts prior to the opening of the proceeding
• • Yes
    Yes, with waiver in the defense of the proceeding -5 k Acknowledgment and cooperation after the opening of the proceeding - Acknowledgment of the facts Acknowledgments of the facts and contributions to the investigation Mediates acknowledgment of the facts, concrete contributions to the investigation and waiver with commitment to payment of the sanction -2