GENERAL PROVISIONS ESTABLISHING THE REQUIREMENTS THAT AUDITORS AND OTHER PROFESSIONALS ASSISTING THE NATIONAL BANKING AND SECURITIES COMMISSION IN ITS INSPECTION FUNCTIONS REGARDING PREVENTION OF OPERATIONS WITH RESOURCES OF ILLEGAL ORIGIN AND TERRORIST FINANCING MUST COMPLY WITH

Published in the Official Gazette of the Federation on December 1, 2014

The National Banking and Securities Commission, based on Articles 57, second paragraph of the General Law of Credit Organizations and Auxiliary Activities, as well as Article 4, fraction XXXVI, and Article 16, fraction I of the National Banking and Securities Commission Law, and

CONSIDERING

That with regard to the "Decree Reforming, Adding, and Repealing Various Provisions in Financial Matters and Issuing the Law Regulating Financial Groups," published in the Official Gazette of the Federation on January 10, 2014, amendments were made, among other regulations, to the General Law of Credit Organizations and Auxiliary Activities, which empowered the National Banking and Securities Commission to establish, through general provisions, the requirements for hiring auditors and other professionals to assist it in verifying compliance with the provisions referred to in Article 95 Bis of the General Law of Credit Organizations and Auxiliary Activities;

That the assistance of such auditors and other professionals will be provided during inspection visits carried out by the National Banking and Securities Commission to unregulated multiple-object financial societies, currency exchanges, and money transmitters, to verify compliance with the aforementioned Article 95 Bis of the General Law of Credit Organizations and Auxiliary Activities, regarding the prevention, detection, and reporting of acts, omissions, or operations that could fall under the circumstances set forth in Articles 139 Quáter or 400 Bis of the Federal Penal Code;

That the foregoing does not imply a substitution or delegation of the inspection functions held by the National Banking and Securities Commission in said matter, and

That the specialization of the auditors and other professionals hired by the Commission itself will help strengthen its supervision functions and carry them out with greater efficiency, has resolved to issue the following:

GENERAL PROVISIONS ESTABLISHING THE REQUIREMENTS THAT AUDITORS AND OTHER PROFESSIONALS ASSISTING THE NATIONAL BANKING AND SECURITIES COMMISSION IN ITS INSPECTION FUNCTIONS REGARDING PREVENTION OF OPERATIONS WITH RESOURCES OF ILLEGAL ORIGIN AND TERRORIST FINANCING MUST COMPLY WITH

INDEX

Chapter I
Preliminary Provisions

Chapter II
On Requirements and Documentation

Chapter III
On the Provision of Services

TRANSITORY PROVISIONS

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Chapter I

Preliminary Provisions

Article 1. The purpose of these provisions is to establish the requirements applicable to auditors and other professionals hired by the Commission, so that they may provide their services to the Commission itself, assisting it in inspection functions within unregulated multiple-object financial societies, currency exchanges, and money transmitters, in order to verify compliance with the provisions referred to in Article 95 Bis of the Law and the general provisions emanating from it, regarding the prevention, detection, and reporting of acts, omissions, or operations that could fall under the circumstances set forth in Articles 139 Quáter or 400 Bis of the Federal Penal Code.

Article 2. In addition to the definitions contained in the Law, for the purposes of these provisions, the following terms shall be understood in singular or plural as:

I. Commission: The National Banking and Securities Commission;
II. Control: The ability to impose, directly or indirectly, decisions in the general shareholders' meetings of Supervised Entities; maintaining ownership of rights that allow directing, directly or indirectly, the administration, strategy, or main policies of Supervised Entities, whether through the ownership of securities or by any other legal act;
III. Significant Influence: Ownership of rights that allow, directly or indirectly, exercising voting rights regarding at least twenty percent (20%) of the social capital of a Supervised Entity;
IV. Law: The General Law of Credit Organizations and Auxiliary Activities;
V. Professional: Auditors and other professionals referred to in Article 57, second paragraph of the Law, whether natural or legal persons, and
VI. Supervised Entities: Unregulated multiple-object financial societies, currency exchanges, and money transmitters.

Article 3. The interpretation of these provisions and the handling of inquiries shall correspond to the Vice Presidency of Preventive Process Supervision of the Commission.

Article 4. The hiring procedure for Professionals shall be carried out in accordance with what is established in the Law on Acquisitions, Leasing, and Services of the Public Sector, its Regulations, and other applicable general provisions.

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Chapter II

On Requirements and Documentation

Article 5. The Professional who intends to assist the Commission in its inspection functions regarding the prevention, detection, and reporting of acts, omissions, or operations that could fall under the circumstances set forth in Articles 139 Quáter or 400 Bis of the Federal Penal Code, must meet, in addition to the requirements established in the regulations referenced in Article 4 of these provisions, the following:

I. In the case of a natural person, having at least an educational level equivalent to a bachelor's degree. In the case of legal persons, their corporate purpose must include the activity of providing auditing services;
II. Having experience in matters of prevention, detection, and reporting of acts, omissions, or operations that could fall under the circumstances foreseen in Articles 139 Quáter or 400 Bis of the Federal Penal Code;
III. Not having been sentenced for property crimes, nor disqualified from holding employment, position, or commission in public service, or in the Mexican financial system or that of any other country;
IV. Possessing sufficient technical, human, financial, and administrative resources for the provision of the corresponding service;
V. Not providing services as a consultant, advisor, or in any other capacity to any Supervised Entity;
VI. Not having Control or Significant Influence over any of the Supervised Entities;
VII. Not being part of the shareholding structure or governing bodies of the Supervised Entities;
VIII. Not having records of administrative termination or early termination of any contract with any government department or entity in the three years prior to hiring; in the case of early termination, only if it involves breaches by the service provider;
IX. Not having records of suspension, cancellation, or revocation of any registration to serve as an independent external auditor, or having had any certification previously revoked by the Commission, and
X. Holding the certificate issued by the Commission regarding the prevention, detection, and reporting of acts, omissions, or operations that could fall under the circumstances set forth in Articles 139 Quáter or 400 Bis of the Federal Penal Code, in accordance with Article 4, fraction X Bis, of the National Banking and Securities Commission Law.

Article 6. The Professional, in addition to the documentation required according to the applicable regulations referenced in Article 4 of these provisions, must provide:

I. Professional degree, or in its absence, professional license, for natural persons, as well as for professionals who will provide services within the legal person and who will be involved in the functions subject to contracting. In the case of legal persons, in addition to the above, their articles of incorporation;
II. To prove the experience referred to in Article 5, fraction II, of these provisions, a document listing the projects in which they have participated in the aforementioned matter, attaching supporting documentation thereof;
III. A letter under oath stating that they do not fall under the circumstances referred to in Article 5, fractions III, V to IX, of these provisions, as well as that they possess the elements referred to in fraction IV of the same Article 5, and that the information and documentation provided pursuant to this article is true, and
IV. A copy of the certificate issued by the Commission in accordance with Article 4, fraction X Bis, of the National Banking and Securities Commission Law.

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Chapter III

On the Provision of Services

Article 7. The contracting performed by the Commission with the Professional shall not imply substitution or delegation of functions by the Commission.

Article 8. The terms and conditions, as well as the performance of the function during inspection visits carried out by the Professional, shall be in accordance with what is established in the respective contract.

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TRANSITORY PROVISIONS

FIRST. These provisions shall enter into force on the next business day following their publication in the Official Gazette of the Federation.

SECOND. The requirement referred to in Article 5, fraction X, of these provisions, regarding holding the certificate issued by the Commission, shall be enforceable until it becomes mandatory to hold it, in accordance with the "General Provisions for the Certification of Independent External Auditors, Compliance Officers, and Other Professionals in Matters of Prevention of Operations with Resources of Illegal Origin and Terrorist Financing," issued by the Commission itself and published in the Official Gazette of the Federation on October 2, 2014.