Circular 24/2009 — Modifies Commission Collection Rules

Monday, October 12, 2009 OFFICIAL GAZETTE (First Section) 81

CIRCULAR 24/2009 Resolution modifying the Commission Collection Rules.

At the margin, a logo stating: Bank of Mexico.

CIRCULAR 24/2009

TO CREDIT INSTITUTIONS, LIMITED OBJECT FINANCIAL SOCIETIES AND MULTIPLE OBJECT FINANCIAL SOCIETIES REGULATED

SUBJECT: RESOLUTION MODIFYING
THE COMMISSION COLLECTION RULES

The Bank of Mexico, based on articles 28 of the Political Constitution of the United Mexican States, sixth and seventh paragraphs; 24 of the Bank of Mexico Law; 4 and 22 of the Law for Transparency and Ordering of Financial Services; 48 of the Credit Institutions Law; 8th paragraphs third and sixth, 10, 14 in relation to article 25 fraction II; 17 fraction I and 20 fraction IV, which provide for the powers of the Bank of Mexico to issue provisions through the General Directorate of Financial System Analysis, the Directorate of Central Banking Provisions, and the Directorate of Operational and Payment Systems, all of the Internal Regulations of the Bank of Mexico, as well as the Single Agreement on the Assignment of Administrative Units of the Bank of Mexico, fractions I, III and IV, considering the convenience of:

a) Continuing to promote best practices regarding the collection of commissions related to the execution of operations and the provision of services via ATMs, and b) Protecting the interests of the public by limiting the collection of commissions that are unclear in their determination or that inhibit competition among financial entities.

Has resolved to add the definitions of Issuer, Interbank Operations, Internal Operations, Operator, Card, and Cardholder; as well as sections 2.4, 2.5 and 2.6 to Circular 17/2009, published in the Official Gazette of the Federation on July 21, 2009, which contains the "General provisions regarding the collection of commissions", to read as follows:

1. DEFINITIONS

For brevity, singular or plural, the following shall be understood as:

"...
Issuer: credit institutions, limited object financial societies or multiple object financial societies regulated that issue Cards.
...
Interbank Operations: operations for cash withdrawal and balance inquiry at ATMs, in which the Issuer is not the Operator.
Internal Operations: operations for cash withdrawal and balance inquiry at ATMs, in which the Issuer is also the Operator.

Monday, October 12, 2009 OFFICIAL GAZETTE (First Section) 82

Operator: credit institutions, limited object financial societies and multiple object financial societies regulated that provide services through ATMs.
Card: bank debit, credit or prepaid cards.
Cardholder: the natural person in whose name a Card is issued or who acquires a bank prepaid card.
..."

2. LIMITATIONS ON COMMISSION COLLECTION

"2.4 For the collection of Commissions for Interbank Operations, the Operator must choose between one of the following schemes:

a) When Operators charge a Commission for the execution of said Interbank Operations, Issuers may not charge Cardholders any additional Commission for the use of the ATMs. This is without prejudice to Issuers charging the respective Commission and transferring the amount of said charge to the Operator in question, in accordance with the compensation and settlement procedures agreed upon for such effect.

b) When Operators decide that the collection of the Commission for the execution of Interbank Operations is carried out by the Issuers, the latter may charge their Cardholders the Commissions they determine for such service. In this case, Operators may not charge Cardholders any additional Commission for the use of said ATMs.

The scheme chosen by the Operators pursuant to this section shall apply to all ATMs they operate and must be communicated to the Bank of Mexico in accordance with the format attached as an Annex to these Provisions. In the event that, once the chosen scheme is implemented, Operators decide to change it, they must inform the Bank of Mexico at least 30 business banking days in advance of the date on which they intend the new scheme to take effect, using the aforementioned format.

2.5 Operators must display on the screens of their ATMs the information regarding the Commission, if any, charged for the execution of Internal Operations. To this effect, they must indicate prior to Customer authorization: i) the charge concept, and ii) the total amount in national currency that the Commission amounts to, excluding corresponding taxes.

In the case of Commissions for the exercise of the credit line through cash withdrawal with credit cards, additionally, Operators must display in a separate item, the amount in national currency that the Commission amounts to, if any, determined by the institution for this concept.

2.6 Operators must display on the screens of their ATMs the information regarding the Commission, if any, charged for the execution of Interbank Operations. To this effect, they must indicate prior to Customer authorization: i) the charge concept; ii) the total amount in national currency that the Commission amounts to, excluding corresponding taxes, and iii) the Financial Entity that will receive the Commission.

Monday, October 12, 2009 OFFICIAL GAZETTE (First Section) 83

In the case of Commissions for the exercise of the credit line through cash withdrawal with credit cards, additionally, Operators must display in a separate item, the amount in national currency that the Commission amounts to, if any, determined by the Issuer for this concept.

ANNEX

COMMUNICATION MODEL

(OPERATOR LETTERHEAD)

Mexico, D.F., ___ of _________ of 200_.

BANK OF MEXICO
Directorate of Operational and Payment Systems Av. 5 de Mayo, number 6 Col. Centro, C.P. 06059 Mexico, D.F.

In compliance with what is provided in the last paragraph of section 2.4 of Circular 24/2009, published in the Official Gazette of the Federation on October 12, 2009, which modifies Circular 17/2009, which contains the "General provisions regarding the collection of commissions", we allow ourselves to inform you that my represented entity (NAME OF THE FINANCIAL ENTITY CORRESPONDING), has decided to opt for the Commission collection scheme provided for in subsection __1 of the aforementioned section 2.4.

Furthermore, it is made known that the collection scheme chosen pursuant to the previous paragraph, will remain in effect until a new communication is made to the Bank of Mexico in accordance with the aforementioned section 2.4.

Sincerely,

(Name of the Financial Entity corresponding),
(Name and signature of authorized officials)

c.c.p. Management of Authorizations and Follow-up of Regulation. For your information and appropriate purposes. Av. 5 de Mayo, number 1, Mezzanine, Col. Centro, C.P. 06059, Mexico, D.F.

1 Indicate subsection a) or b) of section 2.4. In the event that Operators decide to opt for the scheme provided for in subsection a), the amount of the Commission they intend to charge must be specified additionally, distinguishing by the location of the ATMs or by any other circumstance that implies a difference in the amount of the respective charge.

Monday, October 12, 2009 OFFICIAL GAZETTE (First Section) 84

Management of Projects attached to the Directorate of Information of the Financial System. For your information and appropriate purposes. Av. 5 de Mayo, number 1, 2nd Floor, Col. Centro, C.P. 06059, Mexico, D.F."

TRANSITORY PROVISIONS

FIRST. This Resolution shall enter into force on October 13, 2009.
Operators must communicate to the Directorate of Operational and Payment Systems of the Bank of Mexico by no later than December 15, 2009, the scheme they will implement in terms of what is provided in section 2.4 of these Provisions.

SECOND. What is provided in section 2.5 shall enter into force on January 15, 2010.

THIRD. What is provided in sections 2.4 and 2.6 shall enter into force on April 30, 2010.

Mexico, D.F., October 8, 2009.- BANK OF MEXICO: The General Director of Financial System Analysis, José Gerardo Quijano León.- Rubric.- The Director of Central Banking Provisions, Fernando Luis Corvera Caraza.- Rubric.- The Director of Operational and Payment Systems, Ricardo Medina Alvarez.- Rubric.

For any inquiries regarding the content of this Circular, please contact the Management of Authorizations, Inquiries and Legal Control, located at Avenida 5 de Mayo number 2, sixth floor, Colonia Centro, Mexico, Federal District, C.P. 06059, or by phone at 5237.2308, 5237.2000 ext. 3200 or 5237.2317.