Circular RUNOR 1 - 1174: Electronic Information to Clients for Environmental Protection. Regulation

COMMUNICATION “A” 5886 15/01/2016
TO FINANCIAL ENTITIES,
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 NON-FINANCIAL COMPANIES ISSUING PURCHASE CARDS:
Ref.: Circular
RUNOR 1 - 1174
Information to clients by electronic means for environmental protection.
Regulation.

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We address you to inform you that this Institution has adopted the following resolution:

“- Order that, from the day following the date of publication of this communication, the subjects covered must implement the rules on “Information to clients by electronic means for environmental protection” contained in the Annex that forms part of this communication.”

We greet you sincerely.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli Agustín Torcassi
Chief Manager of Issuance and
Regulatory Applications
General Deputy Manager of Regulations

ANNEX

• Index -
  Section 1. General aspects.
  1.1. Subjects covered.
  1.2. Compliance criteria.
  1.3. Cost of the information service.
  1.4. Other conditions.
  Section 2. Exceptions to the sending of information by electronic means.
  Correlation table.
  Version: 1st. COMMUNICATION “A” 5886
  Validity:
  16/01/2016
  B.C.R.A.

ORDERED TEXT OF THE RULES ON “INFORMATION TO CLIENTS BY ELECTRONIC MEANS FOR ENVIRONMENTAL PROTECTION”

1.1. Subjects covered.
1.1.1. Financial entities.
1.1.2. Non-financial companies issuing credit and/or purchase cards.
1.1.3. Trustees of financial trusts included in the Financial Entities Law.
1.1.4. Credit portfolio administrators of ex-financial entities.

1.2. Compliance criteria.
1.2.1. The subjects covered may use electronic communication mechanisms with clients, which include -among others- the following: email, telephony, internet banking -“home banking”-, ATMs and self-service terminals.

1.2.2. In the event that the subjects covered decide to change the communication method, moving from postal mail to electronic information media (or vice versa), they must notify the client, using the communication medium they were using and with a minimum advance notice of sixty (60) calendar days from the date of its effective application, the modification they will carry out, indicating the modality by which the information will be sent.
If the client decides to continue with the current communication mechanism, they must communicate this to the subject covered, who cannot deny the client's request.
In the case of new clients, the subjects covered that decide to use electronic information media will communicate directly through these media, unless the client explicitly opts for the receipt of communications by postal mail at the time of initiating the relationship with the obligated subject.

1.2.3. The data to be supplied electronically to the client must be sent through the electronic information media that are appropriate. The transmission of data that requires the client to be notified before a certain date (account summaries, due date and amount of financing, contractual modifications provided for in point 2.3.4 of the rules on “Protection of users of financial services”, etc.) must be carried out at least by email when the client has provided that address.
In cases where electronic communication media have been chosen, credit and/or purchase card summaries must be sent by email or, in default, in printed form to the address indicated by the holder, in accordance with what is provided by the Credit Card Law. The other information -including those without due date or that are not news- may be directed to the media that allow making it available to the client (e.g. internet banking -“home banking”-, ATMs, self-service terminals).

INFORMATION TO CLIENTS BY ELECTRONIC MEANS
B.C.R.A. FOR ENVIRONMENTAL PROTECTION
Section 1. General aspects.
Version: 1st. COMMUNICATION “A” 5886
Validity:
16/01/2016

When the chosen electronic communication medium is “home banking” it must include -from the entry into force of this Communication- at least the last account summary, up to accumulating those corresponding to the last twelve (12) months in that period.

1.2.4. The subjects covered must offer clients the possibility to opt alternatively -at any time during the contractual relationship- for the electronic information system that the subject had enabled or for the postal sending system, and the subject must keep a record in the client's file of the option they exercise.
In the case of information to users of financial services, for the purpose of implementing the option provided in the preceding paragraph, the modalities provided for in the first paragraph of point 3.1.4 of the rules on “Protection of users of financial services” (telephone, Internet, in writing, fax, postal mail and electronic (e-mail), etc.) apply.

1.2.5. The subjects covered must implement a procedure that allows clients to opt out of receiving information about advertisements and/or promotions, without such decision meaning the discontinuation of the receipt of information on contracted services (account summaries, due date and amount of financing, etc.).

1.3. Cost of the information service.
The subjects covered shall not charge fees or commissions -in accordance with the terms of point 2.3.2 of the rules on “Protection of users of financial services”- for the service of sending and/or making information available by electronic means required by the rules of the Central Bank.

1.4. Other conditions.
The subjects covered that offer their clients the modality of information by electronic means must observe the following:

1.4.1. They shall not require clients to adhere to the receipt of information through electronic media as a condition for opening or maintaining accounts and/or for the provision of any other service.

1.4.2. They shall not establish differentiated commissions for the provision of other services based on the option the client exercises regarding the communication medium to receive information -electronic or postal mail. This, without prejudice to the application to clients of the postal service charge that may correspond to those who are informed by that route.

INFORMATION TO CLIENTS BY ELECTRONIC MEANS
B.C.R.A. FOR ENVIRONMENTAL PROTECTION
Section 1. General aspects.
Version: 1st. COMMUNICATION “A” 5886
Validity:
16/01/2016

1.4.3. When using electronic media to make contracts or other documentation available to the client, they must send to the respective email address or incorporate into “home banking” the digitized images of the original signed copies of such contracts -and of any modifications thereto- or of the documentation, without prejudice to what is provided in point 2.3.1 of the rules on “Protection of users of financial services” regarding the supply or making available, as the case may be, of a copy of the contract.

1.4.4. They must implement security mechanisms, appropriate to the medium through which the information is sent and to the relevance and secrecy of the information being transmitted.
When deposit account summaries are informed through email messages, they must be supplied attached in files whose opening requires the entry of a password or mechanism that provides greater security.

1.4.5. They must send -for those clients who receive information through electronic communication media- the following notices free of charge:

• In the case of debtors for periodic payment financing or credit cards: notice messages (e.g. email or “short message service” -sms- on their mobile phone line) anticipating the date of the next due date and the amount of the debt to be due (installment and minimum and total payments, as the case may be).
• In situations of user inactivity in deposit accounts and/or credit and/or purchase cards for a period greater than one hundred eighty (180) calendar days:
  messages informing of such situation, in the case that the deposit account and/or card is subject to commissions.
  The subject covered cannot close the accounts or initiate collection proceedings that may correspond without previously sending that notice, and must keep a record in the client's file of compliance with this requirement.

INFORMATION TO CLIENTS BY ELECTRONIC MEANS
B.C.R.A. FOR ENVIRONMENTAL PROTECTION
Section 1. General aspects.
Version: 1st. COMMUNICATION “A” 5886
Validity:
16/01/2016

Electronic information media shall not be used (except as complementary information) in replacement of others that by legal or regulatory mandate correspond to be used for formal notification of news, such as:
2.1. Requests for more information and/or documentation originating from the application of the rules on “Prevention of money laundering, terrorist financing and other illicit activities”.
2.2. When it corresponds to make notifications or notices in compliance with what is provided in Section 10. of the rules on “Regulation of the banking current account”.

INFORMATION TO CLIENTS BY ELECTRONIC MEANS
B.C.R.A. FOR ENVIRONMENTAL PROTECTION
Section 2. Exceptions to the sending of information by electronic means.
Version: 1st. COMMUNICATION “A” 5886
Validity:
16/01/2016

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “INFORMATION TO CLIENTS BY ELECTRONIC MEANS FOR ENVIRONMENTAL PROTECTION”

ORDERED TEXT SOURCE NORM
Sec. Point Para. Com. Annex Chap. Sec. Point Para.
OBSERVATIONS
1.1. “A” 5886
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