Notice announcing the guidelines for the preparation of the Manual for the prevention of operations with resources of illicit origin and terrorism financing

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Ciudad de México. Tel.: 5255 1454-6000 www.gob.mx/cnbv

NOTICE BY WHICH THE GUIDELINES FOR THE
PREPARATION OF THE MANUAL FOR THE PREVENTION OF OPERATIONS WITH RESOURCES OF ILLEGAL ORIGIN AND TERRORISM FINANCING ARE MADE KNOWN Published in the Official Gazette of the Federation on October 22, 2012

TO UNREGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES, CURRENCY EXCHANGE CENTERS AND MONEY TRANSMITTERS

general provisions referred to in Article 115 of the Credit Institutions Law in relation to 87-D of the Law General of Organizations and Auxiliary Credit Activities and 95-Bis of this latter instrument, applicable to the Official Gazette on March 17, 2011 and modified through publication in that year that refers to Article 95 Bis of the General Law of Organizations and Auxiliary Credit Activities of Credit applicable to the currency exchange centers referred to in Article 81-A of the same that refers to Article 95 Bis of the General Law of Organizations and Auxiliary Credit Activities, applicable to the money transmitters referred to in Article 81- in the Official Gazette on April 10, 2012, which establish that the National Banking and Securities Commission may issue general guidelines for purposes of assisting the unregulated multiple-object financial societies, the currency exchange centers and the money transmitters in the fulfillment of the obligations established in the aforementioned Provisions, through this instrument the guidelines for the preparation of the manual for the prevention of operations with resources of illicit origin and terrorism financing are made known, which are attached as Annex One. It should be mentioned that this Commission will continue to make known to unregulated multiple-object financial societies, to currency exchange centers and to money transmitters, general guidelines to facilitate compliance with the General Provisions on

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx in matters of prevention of operations with resources of illicit origin and terrorism financing applicable to said societies, among others, in the following topics:

1. Automated systems.
2. Annual audit reports.
   The foregoing, understanding that the aforementioned guidelines shall be considered only as a support guide for unregulated multiple-object financial societies, the currency exchange centers and money transmitters in the presentation of the information in question and do not exempt them from the obligation to comply with what is provided by the general legal and administrative provisions in this matter.

GUIDELINES FOR THE PREPARATION OF THE MANUAL FOR THE PREVENTION OF OPERATIONS WITH RESOURCES OF ILLEGAL ORIGIN AND TERRORISM FINANCING The General Law of Organizations and Auxiliary Credit Activities (LGOAAC) states that the unregulated multiple-object financial societies, the currency exchange centers and the money transmitters (Obligated Subjects) must establish measures and procedures to prevent and detect acts, omissions or operations that could favor, provide help, aid or cooperation of any kind for the commission of the crimes provided for in Articles 139 or 148 Bis of the Federal Penal Code or that could be located in the circumstances of Article 400 Bis of the same Code. For its part, the various General Provisions on matters of prevention of operations with resources of illicit origin and terrorism financing (Provisions) that derive from the aforementioned LGOAAC, state that the Obligated Subjects must elaborate and remit to the Commission a document in which they develop their respective policies of identification and knowledge of Clients or Users, as well as the criteria, measures and internal procedures that they will adopt to comply with what is provided in the Provisions. In said document, the Obligated Subjects must integrate the criteria, measures and internal procedures that they must adopt to respond to the questions What? How? Where? When? Who? and Why?, regarding the compliance with each of the obligations contained in the Provisions. They must also include a section that mentions the training processes they will carry out, as well as the dissemination of the content of said document among their personnel.

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx In this sense, in order to assist the Obligated Subjects in the fulfillment of the obligations established in the Provisions and in exercise of the faculty provided for in these last ones, the Commission makes known these guidelines for the preparation of the Manual of prevention of operations with resources of illicit origin and terrorism financing (Manual AML/CFT). The preparation of the AML/CFT Manual should not be considered a burden, as it is the best tool to implement the society's processes in a transparent manner and in compliance with regulations, and to avoid being used for the execution of operations with resources of illicit origin and terrorism financing. These guidelines shall be considered as a guide, whose purpose is to assist the Obligated Subjects in the preparation of their AML/CFT Manual, which must reflect the characteristics special features of each of the Obligated Subjects considering, among other aspects, the type of products and services offered to Clients or Users. The AML/CFT Manual is a key document to guarantee that employees of the Obligated Subjects give adequate compliance to the procedures in matters of prevention of operations with resources of illicit origin and terrorism financing and must be adapted as the products or services provided change. These guidelines are issued based on the 47ª Bis of the are amended, added to and repealed the General Provisions referred to in Articles 115 of the Credit Institutions Law in relation to 87-D of the General Law of Organizations and Auxiliary Credit Activities and 95-Bis of this latter instrument, applicable to unregulated multiple-object financial societies Gazette (DOF) on December 23, 2011, 44ª of the general provisions referred to in Article 95 Bis of the General Law of Organizations and Auxiliary Credit Activities applicable to currency exchange centers to which refers Article 81- and 46ª of the the general provisions referred to in Article 95 Bis of the General Law of Organizations and Auxiliary Credit Activities, applicable to money transmitters to which refers to Article 81-A Bis of the same instrument of April 10, 2012. The information contained in these guidelines has the SOLE PURPOSE TO ASSIST the Obligated Subjects regarding the content of the AML/CFT Manual referred to in the aforementioned Provisions, therefore IT DOES NOT IMPLY ANY OBLIGATION for the Obligated Subjects. The circumstances provided for in this document are only of an enumerative nature and do not limit the policies, measures and procedures that each Obligated Subject must provide for when preparing the AML/CFT Manual.

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Each society will be responsible for preparing the AML/CFT Manual according to the characteristics special features of the Clients, Users or Operations they carry out. Aspects suggested to be incorporated in the preparation of the AML/CFT Manual Client or User Identification Policies Objective In this section, the aspects that the Subjects Obligated must consider when elaborating the policies of Client or User identification. The policies that the Obligated Subjects will use to identify Clients or Users will provide greater security to the Operations carried out, since by verifying the identity of these, the risks operational, legal or reputational to which the Society might be exposed can be mitigated. The information that the Obligated Subjects will request as
part of the identification policies will vary depending on the
Client or User, however, there are some data minimum that must be collected such as name, profession, address, personal identification with photograph and signature, migration status (in the case of foreigners), as well as identification of legal representatives. ♦ Processes and procedures for the integration of identification files of Clients or Users, prior to the celebration of contracts, in which all the data and documents that must be integrated at a minimum in the respective files must be clearly established, in the case of:
 Mexican natural persons;
 Mexican legal entities;
 Foreign natural persons;
 Foreign legal entities;
 Societies, departments and Entities to which the simplified measures apply;  Resource providers natural persons;  Resource providers legal entities;  Beneficial Owners;  Co-borrowers, joint obligors and authorized third parties, and  Beneficiaries. ♦ Data or documents that must be requested when beneficiaries present themselves to exercise their rights. ♦ Cases in which the Obligated Subject must collect other means of identification. ♦ Policies for the conservation in the identification file of Clients or Users, of the copies of the documents mentioned in the Provisions, as well as, if applicable, of the results of the interviews conducted with their Clients before starting a commercial relationship

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Aspects suggested to be incorporated in the preparation of the AML/CFT Manual ♦ The manner in which the Obligated Subject will conduct the personal interview of Clients or Users or their attorney-in-fact, in order to collect the data and documents of respective identification and the manner in which the results of said interview will be recorded. ♦ In the event that the Obligated Subject signs agreements with third parties for the conduct of the personal interview of Clients or Users, it must establish the mechanism through which it will ensure that the contracted company complies with the obligations in matters of identification and knowledge of Clients or Users. ♦ In the event that the Obligated Subject is the holder of an account concentrator opened at any financial institution authorized for this purpose, it must indicate:
 The manner to guarantee the application of the policies, measures of identification and knowledge of Clients or Users that use such accounts, and  The manner in which the follow-up of the Operations will be carried out. ♦ The obligation and procedures for the data and documents that integrate the identification files of Clients or Users to be conserved, for a period no less than 10 years. ♦ Procedures to prevent the misuse of electronic, optical or any other technology, establishing that when the Obligated Subject carries out Operations through this type of means, it must previously integrate the identification file of Clients or Users and establish mechanisms to identify it. ♦ Follow-up and grouping mechanisms for Operations. ♦ In the event that the Obligated Subject markets any type of payment media, the mechanisms to give follow-up to the Operations of purchase and fund reload that allow the identification of the date and branch of the Obligated Subject in which the Operations were carried out, as well as the amounts of the same. ♦ Policies, criteria, measures and procedures to verify that the identification files of Clients or Users classified as High Risk, contain all data and documents updated, as well as the content of the identification questionnaires that will allow the Obligated Subject to obtain more information about the origin and destination of the resources and the activities and Operations they carry out or intend to carry out. ♦ Low-transactionality Operations to which simplified identification requirements apply, if applicable.

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Aspects suggested to be incorporated in the preparation of the AML/CFT Manual Client or User Knowledge Policies Objective In this section the Obligated Subject must develop the procedures that allow knowing the usual behavior of Clients or Users, and establish the criteria that assist said societies in detecting when a Client or User deviates from or modifies their transactional profile. ♦ Criteria for classifying Clients or Users by their degree of Risk establishing as a minimum, two classifications: High Risk and Low Risk. The Obligated Subject may develop as many classifications as it deems necessary. ♦ Procedures for the due knowledge of the transactional profile of each of the Clients or Users and of the grouping of the Operations of these. ♦ Circumstances in which the Operations deviate from the transactional profile of each of its Clients or Users considering, among other aspects, type of Client (natural or legal persons; national or foreign) geographic zone and type of currency. ♦ The manner in which the Obligated Subject will establish an alert system to verify and detect changes in the transactional behavior of Clients or Users. ♦ Criteria for, if applicable, modifying the degree of Risk previously determined for a Client or User in which the procedures for reclassifying as High Risk those in which, among other circumstances, a significant change is detected in their transactional behavior or doubts arise regarding the veracity or accuracy of the data or documents provided by the Client or User. ♦ Internal procedures that will be applied to Clients or Users who have been categorized as High Risk, as well as to Clients or Users new who meet such character. ♦ Mechanisms for the Compliance Officer to have knowledge of contracts or Operations that may generate a High Risk for the Obligated Subject. ♦ Circumstances in which, depending on the degree of Risk of the Clients or Users, home visits should be conducted to integrate duly the files and update the data and documents that must be in the files. ♦ Internal procedures to obtain the approval of an official who holds a position within the three hierarchical levels below the general director, in order to initiate or, if applicable, continue the commercial relationship with a Politically Exposed Person or High Risk. ♦ Mechanisms to determine the degree of Risk of Operations with Politically Exposed Persons of Mexican nationality,

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Aspects suggested to be incorporated in the preparation of the AML/CFT Manual considering whether the transactional behavior corresponds reasonably with their functions, level and responsibility. ♦ Client or User knowledge policy in cases where these are considered High Risk, Politically Exposed Persons or carry out High Risk Operations. ♦ Criteria and procedure to update the identification files of Clients or Users classified as High Risk and Politically Exposed Persons at least once a year.

♦ Procedures to identify the Beneficial Owners of the resources used by Clients or Users in their contracts or Operations. Reports Objective In this section the Obligated Subject must develop the policies and procedures that will serve to analyze the information of the Operations of the Clients or Users to determine if they meet the criteria to be considered as Relevant Operations, Unusual Operations, Internal Concerning Operations. As well as the procedures for preparing reports of international fund transfers, of Operations in cash with United States dollars, or any other type of report as appropriate, and send them in a timely and proper manner to the respective authorities in accordance with what is provided in the Provisions. In this sense, through objective and subjective valuations, the Obligated Subject can detect, prevent and mitigate the Risks inherent to the products and services that it offers to Clients or Users. ♦ General aspects regarding Operation reports:
 Measures and procedures in accordance with which the personnel of the Obligated Subject, once they know information based on indicia or concrete facts that, when attempting to carry out an Operation, the resources might come from illicit activities or might be destined to finance terrorism, must make it immediate knowledge of the Compliance Officer of the Obligated Subject, so that this complies with the obligation to send the report that corresponds;  Measures and procedures in accordance with which the Obligated Subject will ensure to send to the Secretariat through the Commission the reports in a timely and proper manner, and  Establish that the Obligated Subject will conserve for a period no less than 10 years counted from its execution, a copy of the reports, as well as the original or copy or accounting or financial record of the supporting documentation of the Operations reports, which must be identified and conserved by the Society itself. ♦ Reports of Relevant Operations.  Mechanisms through which the Obligated Subject will detect the Relevant Operations carried out by Clients or Users, and  Establish that in the event that a Relevant Operation is also considered as an Unusual Operation, a report must be formulated, separately, for each of those types of Operations. ♦ Report of Unusual Operations.  Criteria, measures and procedures that allow the Obligated Subject to detect the Operations that may be considered as unusual;  Mechanisms through which the Obligated Subject will detect the Unusual Operations carried out by the same Client or User;  Mechanisms based on which the background and purposes of those Operations that must be presented to the Communication and Control Committee or to the Compliance Officer, if applicable, for purposes of their determination as Unusual Operations;  Establish that the results of the analysis of Operations presented to the Communication and Control Committee or to the Compliance Officer, if applicable, for purposes of their determination must be recorded in writing and be available to the Secretariat and to the Commission, for at least 10 years counted from the celebration of the session of the Communication and Control Committee or the determination by the Compliance Officer, as applicable;  Indicate that for the preparation of reports of Unusual Operations the good practice proposals issued by the Secretariat must be taken into account;  Mechanisms and systems that allow employees and officials of the Obligated Subject to send directly to the Compliance Officer, notices on facts or acts susceptible to be considered as constitutive of Unusual Operations, and  Criteria to identify possible Unusual Operations in which the mechanisms to be followed must be developed to examine those Operations that will be presented to the Communication and Control Committee or to the Compliance Officer, if applicable, for purposes of their determination as Unusual

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Aspects suggested to be incorporated in the preparation of the AML/CFT Manual Unusual. ♦  Establish that in the event that the Obligated Subject has information based on indicia or concrete facts that, when attempting to carry out an Operation, the resources might come from illicit activities or might be destined to finance terrorism, in the event that it decides to accept the Operation, the Obligated Subject must remit to the Secretariat through the Commission, knowing said information, a report of Unusual Operation. Likewise, and considering the aforementioned circumstances, establish those cases in which even if the Operation is not carried out ♦ Report of Internal Concerning Operations.  Internal criteria in accordance with which the Obligated Subject determines if an Operation must be qualified as internal concerning;  System, model, process or any other means that allows the Obligated Subject to detect any Internal Concerning Operation, and  Mechanisms and systems that allow employees and officials of the Obligated Subject to send directly to the Compliance Officer the reports on facts or acts susceptible to be considered as constitutive of Internal Concerning Operations. ♦ Other reports.  Measures and procedures in accordance with which the Obligated Subject will ensure to send to the Secretariat through the Commission the other reports that, if applicable, are provided for in the Provisions, such as reports of international transfers and of Operations in cash United States dollars. Confidentiality Objective Due to the characteristics and confidentiality of the information that the Obligated Subject has regarding Clients or Users, it is necessary that executives, officials, employees and attorneys-in-fact of the society maintain strict control and confidentiality measures on the Operations they carry out and on the content of the reports. ♦ Mechanisms for members of the board of directors, of the

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, Mexico D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, México D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Aspects to be incorporated in the preparation of the AML/CFT Manual

Comité de Comunicación y Control, the Compliance Officer, as well as the executives, officials, employees, and agents of the Obligated Subject, must maintain absolute confidentiality regarding information related to reports.

Internal Structures Object
In accordance with the Provisions, the Obligated Subject must have a collegiate body called the Communication and Control Committee, which has among other tasks, the duty to follow up on the strict application of policies to prevent operations with illicit resources and terrorism financing. In this section, the Obligated Subject must establish the functions and the manner in which the Committee will be integrated.

It should be noted that if the Obligated Subject has fewer than 25 people serving it, whether performing functions directly or indirectly, they will not be obligated to constitute and maintain the Committee, and the functions will be exercised by the Compliance Officer.

Remember that the Compliance Officer must be a direct employee of the Obligated Subject and cannot exercise these functions in another company except for that Obligated Subject that is a member of a financial group.

♦ Manner in which the Communication and Control Committee will operate, with respect to:

• The titular and alternate members who will be part of the Committee;
• Quorum requirements for the session to be considered legally installed;
• The manner in which the resolutions adopted will be recorded, and
• The mechanism by which they will designate the Compliance Officer.

♦ Mechanisms, processes, and deadlines that must be observed in the performance of the functions of the Communication and Control Committee or, in its case, of the Compliance Officer.

♦ Functions to be performed by the Compliance Officer.

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, México D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Aspects to be incorporated in the preparation of the AML/CFT Manual Selection, Training, and Dissemination Object

This section aims for the Obligated Subject to establish the criteria that will be used to hire personnel, as well as to maintain a high standard of training for active personnel regarding the content of the AML/CFT Manual.

♦ Personnel selection procedures so that they have the necessary technical quality and experience, as well as honorability, to carry out the activities entrusted to them within the Obligated Subject.

♦ Training programs prior to or simultaneous with the entry of officials and employees who will work in areas of public attention or resource administration.

♦ Manner and periodicity in which the Obligated Subject will train the members of the Communication and Control Committee, Compliance Officer, executives, officials, employees, and agents who work in areas of public attention according to what is provided in the AML/CFT Manual, the Provisions, as well as on techniques, methods, and trends to prevent, detect, and report Operations originating from illicit resources or terrorism financing.

♦ Manner in which the Obligated Subject will conduct evaluations on acquired knowledge, indicating the measures that will be adopted regarding employees who do not obtain satisfactory results.

Additional Aspects

♦ Establish, in accordance with the guidelines and best practice proposals that the Secretariat may release, homogeneous and uniform Risk methodologies and models appropriate to the general characteristics of their Operations, which serve them to detect and report, under the terms of the Provisions, acts, omissions, or Operations that could update the provisions set forth in articles 139, 148 Bis, or 400 Bis of the Federal Penal Code.

♦ Mechanisms through which the Obligated Subject will respond to requests for information and documentation, as well as to orders for seizure or unlocking of operations formulated by competent authorities in matters of prevention, investigation, prosecution, and sanction of conduct that could update the provisions set forth in articles 139, 148 Bis, or 400 Bis of the Federal Penal Code.

♦ Indicate the process by which the AML/CFT Manual must be approved by the Communication and Control Committee or, in its absence, by the Board of Directors or Sole Administrator.

♦ The AML/CFT Manual must be reviewed and updated by the Obligated Subject as often as deemed necessary, taking into consideration some aspects such as new products or services offered by the company, geographic zones where such services are provided, type of currency used, among others.

♦ Obligated Subjects, when implementing their automated systems, as well as when preparing the annual audit report, must consider the guidelines issued by the Commission for such purposes.

Glossary

• Beneficiary, the person designated by the holder of a contract entered into with the Obligated Subject so that, in the event of the death of said holder, such person exercises before the Obligated Subject the rights derived from the respective contract, in accordance with what is provided for this purpose by the applicable provisions.

• Client, any natural or legal person that:

  • Acts in their own name or through mandates or commissions, is accredited by a multiple-object unregulated financial company, or
  • Uses, under the protection of a contract, the services provided by some multiple-object unregulated financial company or carries out Operations with it.
    Likewise, persons who carry out Operations through trusts in which the multiple-object unregulated financial company has the status of trustee shall be understood as Clients; 1

• Commission, the National Banking and Securities Commission.

• Committee, the Communication and Control Committee.

• Control, the capacity of a person or group of persons, through the ownership of securities, through the celebration of a contract, or through any other legal act, to:

  • Impose, directly or indirectly, decisions in the general shareholders' meeting or partners' meeting or in the equivalent governing body of a legal entity;
  • Appoint or remove the majority of counselors, administrators, or equivalents of a legal entity;

1 The definition of Client only applies to multiple-object financial companies, non-regulated entities.

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, México D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx
- Maintain the ownership of rights that allow, directly or indirectly, to exercise voting rights with respect to more than fifty percent of the share capital of a legal entity, or
- Direct, directly or indirectly, the administration, strategy, or main policies of a legal entity.

• Concentrating Account, the bank or deposit account that the Obligated Subject has open in any financial institution authorized to receive, through said account, resources from its Clients, Users, debtors, or payers.

• CURP, the Unique Key of the National Population Registry issued by the Secretariat of Governance.

• Obligated Subject, singular or plural, multiple-object unregulated financial companies, currency exchanges, and money transmitters.

• Terrorism Financing, the crime referred to in articles 139 and 148 Bis of the Federal Penal Code.

• Monetary Instrument, legal tender banknotes and metallic coins in the United Mexican States or in any other country, traveler's checks, coins minted in platinum, gold, and silver, checks, payment obligations assumed through the use of a credit or debit card, cards marketed by the Obligated Subject in which resources susceptible of being used as a means of payment or withdrawn through cash disbursements in automated teller machines or banking or commercial establishments are stored, as well as securities or resources transferred by any electronic or other analogous means, and any other type of resources, rights, goods, or merchandise.

• Operations with illicit resources, the term commonly used to refer to the crime typified in article 400 Bis of the Federal Penal Code.

• Law, the General Law of Organizations and Auxiliary Activities of Credit.

• Compliance Officer, the official who will carry out the functions indicated in the general provisions applicable.

• Operations, the activities and services entered into by the Obligated Subject, as well as those related to the products it commercializes.

• Unusual Operation, an Operation, activity, conduct, or behavior of a Client that does not match the background or known activity by the Obligated Subject or declared to it, or with the initial or habitual transactional profile of said Client, based on the origin or destination of the resources, as well as the amount, frequency, type, or nature of the Operation in question, without there being a reasonable justification for said Operation, activity, conduct, or behavior, or that Operation, activity, conduct, or behavior that a Client or User carries out or intends to carry out with the Obligated Subject in question in which, for any cause, this considers that the corresponding resources could be located in any of the provisions set forth in articles 139, 148 Bis, or 400 Bis of the Federal Penal Code.

• Concerning Internal Operation, an Operation, activity, conduct, or behavior of any of the shareholders, partners, executives, officials, employees, agents, and those who exercise Control over the Obligated Subject, which by its characteristics could contravene, violate, or evade the application of what is provided by the General Law of Organizations and Auxiliary Activities of Credit, these Provisions, or that which, for any other cause, proves doubtful to the Obligated Subjects by considering that it could favor or not alert on the updating of the provisions set forth in articles 139, 148 Bis, or 400 Bis of the Federal Penal Code.

• Relevant Operation, an Operation carried out with legal tender banknotes and metallic coins in the United Mexican States or in any other country, as well as with traveler's checks and coins minted in platinum, gold, and silver, for an amount equal to or greater than the equivalent in national currency to ten thousand United States dollars. For the purpose of calculating the amount of the Operations to its equivalent in national currency, the exchange rate to settle obligations denominated in foreign currency payable in the Mexican Republic, published by the Bank of Mexico in the Official Gazette of the Federation, on the immediate preceding banking business day to the date on which the Operation is carried out, will be considered.

• Politically Exposed Person, any individual who performs or has performed prominent public functions in a foreign country or national territory, considering among others, heads of state or government, political leaders, high-ranking government, judicial, or military officials, high executives of state-owned companies, or officials or important members of political parties. Spouses, concubines, concubines, and persons with whom they maintain kinship by blood or affinity up to the second degree are assimilated to Politically Exposed Persons, as well as legal entities with which the Politically Exposed Person maintains patrimonial links. Regarding this, national Politically Exposed Persons will continue to be considered those persons who had been cataloged with such character, during the year following that in which they left their office.

Without prejudice to the foregoing, in cases where a person ceases to meet the characteristics required to be considered a national Politically Exposed Person, within the year immediately preceding the date on which a new commercial relationship is intended to be initiated with the

Insurgentes Sur No. 1971, Plaza Inn, Col. Guadalupe Inn C.P. 01020, Delegación Álvaro Obregón, México D.F. Tel.: 5255 1454-6000 www.cnbv.gob.mx Obligated Subject, they will be cataloged as such, during the year following that in which the corresponding contract was celebrated.

• Beneficial Owner, that person who, through another or through any act or mechanism, obtains the benefits derived from a contract or Operation entered into with the Obligated Subject and is the one who, ultimately, exercises the rights of use, enjoyment, exploitation, or disposal of the resources, that is, as the true owner of the resources. The term Beneficial Owner also includes that person or group of persons who exercise Control over a legal entity, as well as, in their case, the persons who can instruct or determine, for their own economic benefit, the acts susceptible of being carried out through trusts, mandates, or commissions.

• Resource Provider, that person who, without being the holder of a contract entered into with the Obligated Subject, regularly contributes resources for the fulfillment of obligations derived from said contract without obtaining the economic benefits derived from it.

• RFC, the federal taxpayer registry issued by the Tax Administration Service.

• Risk, the probability that the Obligated Subject may be used by its Clients or Users to carry out acts or Operations through which the provisions set forth in articles 139, 148 Bis, or 400 Bis of the Federal Penal Code could be updated.

• Secretariat, the Secretariat of Finance and Public Credit.

• User, any natural or legal person who carries out an Operation with the Obligated Subject or uses the services offered by the Obligated Subject, without having a permanent commercial relationship with it.
  For the purposes of the foregoing, it will be understood that there is no permanent commercial relationship when the said person has not contracted a credit, financial lease, or financial factoring, does not carry out Operations through trusts, and when the services provided by the Obligated Subject, as well as the Operations carried out with it, are acts of instant execution, in which the commercial relationship between the Obligated Subject and the User begins and ends with the simple execution of the act. ____________________