Exchange Houses, Agencies and Offices: Foreign Exchange and Exchange Adjustments

2017 - YEAR OF RENEWABLE ENERGIES

COMMUNICATION “A” 6378
24/11/2017

TO FINANCIAL INSTITUTIONS,
TO EXCHANGE HOUSES, AGENCIES AND OFFICES:

Ref.: Circular
RUNOR 1 - 1345
CAMEX 1 - 789

Exchange houses, agencies and offices. Foreign exchange and exchanges. Adjustments.

---

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

“1. Replace points 1.4., 1.6. and 2.2.6., subparagraphs ii), iii) and v) of point 2.2.7., points 2.3.1., 2.3.3., 2.4.1. and 2.5., the second paragraph of point 2.10.2., the first and second paragraph of point 2.10.3., the last paragraph of point 3.3., points 4.1., 4.3. and 4.4., the title of Section 9., the first, third and fifth paragraphs of point 9.3. and the first paragraph of the model note contained in that point, of the rules on “Exchange houses, agencies and offices”, with the following:

“1.4. Customer service.

Exchange houses, agencies and offices must carry out their activities in premises on the street or located in commercial galleries.

Likewise, natural persons duly identified by elements that unequivocally associate them with the entity –such as a bib, cap, sign, etc.– may conduct operations on public roads.

When operations are carried out through electronic channels and/or with the use of electronic or digital signature, the provisions on that matter in the rules governing the Single and Free Exchange Market must be complied with, and the first paragraph shall not apply to that operation.”

“1.6. Other provisions.

Exchange houses, agencies and offices must clearly and visibly display the quotations of foreign currencies.”

“2.2.6. Capital to be initially contributed, which may not be less than the corresponding minimum, set in Section 3.

The capital of exchange houses and agencies must be fully paid in on the date of commencement of activities or within 60 calendar days counted from the date of the authorization resolution, whichever occurs first.

Exchange houses must submit to the BCRA before the start of their activities a certification from an independent public accountant regarding compliance with the re- quirements detailed in point 3.3., in accordance with the provisions of point 8.1.2.”

2.2.7.

“ii) Personal data, as indicated in point 8.2.

iii) Sworn statement that they are not included in the disqualifications established in article 4 of Law 18.924 on Exchange Houses, Agencies and Offices, that they have not been convicted of crimes of money laundering and/or terrorist financing, that they do not appear in the resolutions on terrorist financing communicated by the UIF and/or have been designated by the Security Committee of the United Nations, and as to whether they have been sanctioned with a fine by the UIF or with disqualification, suspension, prohibition or revocation by the BCRA, the National Securities Commission (CNV) and/or the National Insurance Superintendency (SSN), as indicated in point 8.2.

The submission of the “Sworn Statement on the status of Politically Exposed Person” shall also be complied with.”

“v) In the case of legal persons:

− Copy of the bylaws or social contract with evidence of its approval by the competent authority and registration in the Public Registry of the corresponding jurisdiction.

− List of the members of the company –shareholders, partners or equivalents–, directors, administrators, members of the supervisory boards, statutory auditors and general manager, accompanying the personal data and sworn statements of each of them –as indicated in point 8.2.– and a criminal record certificate in accordance with the provisions of point 8.1.1.

In the case of authorities not resident in the country, the equivalent certificate issued by the competent governmental authority of the country where they reside must be submitted.

− List of the shareholders, partners or equivalents that reach the thresholds provided in the UIF rules that make their identification as beneficial owner mandatory, in a form in accordance with the model in point 9.1.

When dealing with financial entities authorized to operate in the Argentine Republic, it will not be necessary to provide the preceding information again.”

“2.3.1. The Authorization Management, within 15 business days of the submission of the authorization request, shall verify that it contains all the information and documentation required and shall request by email the submission of any that may have been omitted.”

“2.3.3. Within 30 business days of the completion of the submission of all the requirements of point 2.2., a response shall be given by email to the authorization request.”

“2.4.1. Exchange houses must constitute a guarantee of $ 500,000, which must res- pond for compliance with the provisions that regulate their activity.
When constituting the aforementioned guarantee, the origin of the funds must be proven by providing the pertinent information that will be evaluated by the BCRA.”

“2.5. Commencement of activities.

Exchange houses, agencies and offices must commence activities within a period of six months, counted from the date of the authorization granted, and must inform the start date in advance to the email address gerencia.autorizaciones@bcra.gob.ar.

In the case of exchange houses, they must also send to the BCRA –prior to the aforementioned date– the certification from an independent public accountant referred to in point 2.2.6.”

2.10.2.

“For the purposes of the preceding paragraph, the information and/or sanctions communicated by foreign entities or authorities with equivalent powers may be taken into consideration.”

2.10.3. “Failure to comply with the requirements set forth in these rules shall result in the suspension for 60 consecutive days of the authorization to operate.

If such non-compliance is not remedied during that 60-consecutive-day period, as of the following day the BCRA shall initiate the proceedings for the revocation of said authorization, with the suspension of activity remaining in effect.”

3.3.

“With respect to the aforementioned contributions, the origin of the funds must be evidenced; in the case of exchange houses, by means of the public accountant's certification provided for in point 2.2.6.”

“4.1. Requirement of prior communication.

The opening of branches of exchange houses and agencies may be carried out upon prior communication to the SEFyC, sent at least 10 business days in advance of the date on which it is to take effect, informing its complete address to the email address gerencia.autorizaciones@bcra.gob.ar.”

“4.3. Change of address.

A change of address must be communicated in advance to the SEFyC at the email address gerencia.autorizaciones@bcra.gob.ar, at least 10 business days in advance of the date on which it is to take effect. In the case of exchange houses, it shall also be reported whether the new address entails a modification in the category of the branch concerned.

4.4. Closure.

Exchange entities may decide to close their branches, upon prior notice sent to the SEFyC at the email address gerencia.autorizaciones@bcra.gob.ar.”

“Section 9. Forms.”

9.3.

“Exchange houses must request, by note sent by email (from point 2.2.5.) to the address administracion.cryl@bcra.gob.ar – according to the form provided below –, addressed to the Principal Management of Control and Settlement of Operations, the opening of a special registry account in their name and to the order of the BCRA in the CRyL, for the sole purpose of depositing the securities in guarantee. The signatories of these notes must have their signature registered with the BCRA's Current Accounts Management.”

“Exchange houses shall not be authorized to debit said accounts without prior authorization from the BCRA, for which purpose they must submit the corresponding transfer request to the CRyL for processing with the involvement of the pertinent BCRA areas.”

“Exchange houses may request the release of the financial services from the CRyL for processing with the involvement of the pertinent BCRA areas.”

“.......................... and .................... (names and surnames) in our capacity as (title in which the representation is exercised) of ......................... (name of the exchange house) request, in compliance with the provisions of point 2.4. of the rules on “Exchange houses, agencies and offices”, the opening of a special registry account in the name of (name of the exchange house) and to the order of the Central Bank of the Argentine Republic, in the Central Registry and Settlement of Public Liabilities and Financial Trusts (CRyL).”

2. Repeal points 2.6., 4.2., 7.2. and 9.1. of the rules on “Exchange houses, agencies and offices”.

3. Incorporate as points 2.2.5., 2.3., 8.1.3. and 8.2. of the rules on “Exchange houses, agencies and offices” the following:

“2.2.5. Establish an email address that shall be considered the only valid one for sending information and/or requirements to this BCRA and for receiving its notifications.”

“2.3. Subsequent information.

The corresponding registration of the company's articles of incorporation by the competent corporate control authority in the Public Registry of the corresponding jurisdiction must be submitted.

Amendments to the articles of incorporation or bylaws and to the authorities referred to in point 2.2.8., current and/or special address, must be reported to the BCRA within the following 5 business days. In the case of new authorities, the information referred to in that point must be attached.”

“8.1.3. The required documentation must be sent through the pertinent application, in a file in “.pdf” format, and be kept at the exchange entity – or by the promoter, if applicable – at the disposal of the SEFyC. The legal representative of the entity must state by note, as a sworn statement, that all the documentation sent by electronic means is a true copy of the documentation kept by the entity and is at the disposal of the SEFyC, detailing the place where it is located.”

“8.2. Personal background and sworn statements.

The application “Personal background for exchange entities” must be used, which is available on the BCRA's website (www.bcra.gob.ar), in order to submit the information required in point 2.2.”

4. Replace the title and the first paragraph of point 2.4.2. and the title of point 3.1.1. of the rules on “Foreign exchange and exchanges” with the following:

“2.4.2. Display in customer service premises.

In every premises where exchange transactions in banknotes and traveler's checks are carried out with customers, entities must display signs easily visible to customers and with an adequate font size on which the retail exchange rates offered are informed, clearly and throughout the entire operating hours, specifying separately any expense or commission, if any, for the purchase and sale of banknotes and traveler's checks of at least the following currencies to the extent that transactions are carried out with them: US dollars, euros, pounds sterling, Swiss francs and currencies of neighboring countries.”

“3.1.1. Transactions carried out in person.”

5. Establish that the use of the application “Personal background for exchange entities”, provided for in point 8.2. of the rules on “Exchange houses, agencies and offices” (text as per this resolution), shall be required as of 2.1.18.”

Likewise, we inform you that we will subsequently send you the sheets that, in replacement of those timely provided, will need to be incorporated into the regulations referred to.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

Agustín Torcassi
Deputy General Manager of Regulations