General Provisions for Obtaining the Technical Opinion for Currency Exchange Centers, Money Transmitters, and Unregulated Multiple-Object Financial Societies

GENERAL PROVISIONS FOR OBTAINING THE TECHNICAL OPINION FOR CURRENCY EXCHANGE CENTERS, MONEY TRANSMITTERS, AND UNREGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES

Published in the Official Gazette of the Federation on April 4, 2014.
Updated with modifications published in the same Gazette on September 30, 2016, and June 26, 2017.

The National Banking and Securities Commission, based on the provisions of Articles 86 Bis and 87-P of the General Law of Credit Institutions and Auxiliary Activities; Articles 4, fraction XXXVI, 16, fraction I, and 19 of the Law of the National Banking and Securities Commission, and

CONSIDERING

That the General Law of Credit Institutions and Auxiliary Activities establishes that currency exchange centers, money transmitters, and unregulated multiple-object financial societies must establish measures and procedures to prevent and detect acts, omissions, or operations that could favor, assist, aid, or cooperate in any manner with the commission of the crimes foreseen in Articles 139 Quater and 400 Bis of the Federal Penal Code, relating to terrorist financing and operations with resources of illicit origin;

That, following the publication of the “Decree reforming, adding, and repealing various provisions in financial matters and issuing the Law to Regulate Financial Groupings” in the Official Gazette of the Federation on January 10, 2014, reforms were made to the General Law of Credit Institutions and Auxiliary Activities, which, among other things, establish the obligation for currency exchange centers, money transmitters, and unregulated multiple-object financial societies to obtain a technical opinion from this National Banking and Securities Commission prior to their inscription in the registry maintained by this authority or the National Commission for the Protection and Defense of Financial Services Users, as applicable;

That the foregoing is relevant because, unlike other entities supervised by the National Banking and Securities Commission regarding the prevention of operations with resources of illicit origin and terrorist financing, for which this authority issues prior authorization before commencing operations, this is not the case for currency exchange centers, money transmitters, and unregulated multiple-object financial societies; therefore, the aforementioned opinion will constitute an element of this Commission that will help generate confidence regarding these entities in the financial system and for users in general, since it will be accredited that they possess the minimum elements required in the aforementioned matters;

That the issuance of the technical opinion is without prejudice to or independent of the National Banking and Securities Commission’s supervision functions regarding the prevention of money laundering and terrorist financing, since, while the former aims to provide certainty regarding the existence of the minimum elements mentioned above and is exhausted in a single act, the latter imply a supervision service regarding the effectiveness and proper application of control elements;

That the technical opinion will have a validity of three years, so its renewal will be necessary for the National Banking and Securities Commission to verify the persistence of the minimum elements required regarding the prevention of operations with resources of illicit origin and terrorist financing, evaluating their proper application;

That additionally, with the entry into force of the reforms indicated in the second paragraph, the National Banking and Securities Commission’s supervision functions regarding currency exchange centers, money transmitters, and unregulated multiple-object financial societies have a broader scope, and

That the aforementioned reforms empower the National Banking and Securities Commission to regulate the procedure for obtaining the aforementioned technical opinion, it has resolved to issue the following:

GENERAL PROVISIONS FOR OBTAINING THE TECHNICAL OPINION FOR CURRENCY EXCHANGE CENTERS, MONEY TRANSMITTERS, AND UNREGULATED MULTIPLE-OBJECT FINANCIAL SOCIETIES

INDEX
Chapter I
Object and Definitions
Chapter II
On Obtaining the Technical Opinion
Chapter III
On the Renewal of the Technical Opinion
Chapter IV
On Notifications
Chapter V
On Interpretation
TRANSITORY PROVISIONS

Chapter I
Object and Definitions

Article 1.- These provisions aim to establish the procedure, deadlines, and means for Obligated Subjects to request the National Banking and Securities Commission to issue or renew, as applicable, the Technical Opinion referred to in Articles 81-B, 86 Bis, 87-B, 87-K, and 87-P of the Law.

Article 2.- For the purposes of these provisions, the following shall be understood:

I. Commission: The National Banking and Securities Commission.

II. Communication and Control Committee: The collegiate body possessed by Obligated Subjects, in terms of the General Provisions issued by the Secretariat.

III. CURP: The Unique Population Registry Key.

IV. Technical Opinion: The opinion referred to in Articles 86 Bis and 87-P of the Law.

V. General Provisions issued by the Secretariat: The “General Provisions referred to in Article 115 of the Credit Institutions Law in relation to Article 87-D of the General Law of Credit Institutions and Auxiliary Activities and Article 95-Bis of the latter statute, applicable to multiple-object financial societies,” published in the Official Gazette of the Federation on March 17, 2011; the “General Provisions referred to in Article 95 Bis of the General Law of Credit Institutions and Auxiliary Activities applicable to currency exchange centers referred to in Article 81-A of the same statute”; and the “General Provisions referred to in Article 95 Bis of the General Law of Credit Institutions and Auxiliary Activities applicable to money transmitters referred to in Article 81-A Bis of the same statute,” both published in the aforementioned media on April 10, 2012, which were issued by the Secretariat of Finance and Public Credit.

VI. Instruction Manual: The document detailing the procedure for obtaining the Technical Opinion via SITI, as well as the technical specifications required to carry out its processing.

VII. Law: The General Law of Credit Institutions and Auxiliary Activities.

VIII. Notification: Communications related to the processing and resolution of the Technical Opinion, singular or plural.

IX. Compliance Officer: The official designated in terms of the General Provisions issued by the Secretariat.

X. PLD/FT: Prevention of Operations with Resources of Illicit Origin and Terrorist Financing.

XI. Registry: The registry referred to in Articles 81-B and 87-K of the Law.

XII. RFC: Federal Taxpayer Registry.

XIII. SITI: Interinstitutional Information Transfer System.

XIV. Obligated Subject: Singular or plural, referring to the currency exchange center, the money transmitter, and the unregulated multiple-object financial society, which, in terms of Articles 81-B and 86-Bis for the first two, and Articles 87-B, 87-K, and 87-P of the Law for societies, present the request for renewal of the Technical Opinion referred to in said articles, as well as those societies that present their request for obtaining such an opinion for their registration as a currency exchange center, money transmitter, or unregulated multiple-object financial society, before the Commission or the National Commission for the Protection and Defense of Financial Services Users, as applicable, in terms of the Law.

Chapter II
On Obtaining the Technical Opinion

Article 3.- Obligated Subjects must submit the request for the issuance of the Technical Opinion referred to in this chapter through the electronic processing procedure via SITI, using the formats made available by the Commission on its website for such purposes, and in accordance with the specifications provided in the Instruction Manual, which will be available in the “Prevention of Money Laundering and Terrorist Financing” section under the “Notices” section of the Commission’s internet portal, accessible via the electronic address http://www.cnbv.gob.mx

In cases where files must be attached, this shall be done electronically in terms of the specifications contained in the aforementioned Instruction Manual, and the content of said files must not contain strikethroughs, corrections, or alterations.

Article 4.- Obligated Subjects must access the section titled “Request for Technical Opinion” on the SITI portal using the user key and password obtained, in terms of the content of the Instruction Manual for processing the issuance of the Technical Opinion via SITI.

The request referred to in this article must contain the following information:

I. Regarding the legal representative or proxy:
a) Full name without abbreviations. b) CURP and RFC. c) Telephone number, composed of area code, number, and, if applicable, extension, as well as their email address. d) Number and date of the public instrument in which their legal representation is recorded. Number of the notary public and the federal entity where the public instrument recording their legal representation was issued.

II. Name or corporate name of the Obligated Subject.

III. Regarding the person who will serve as Compliance Officer:
a) Full name without abbreviations. b) CURP and RFC.

IV. Regarding each of the persons who will form the Communication and Control Committee:
a) Full name without abbreviations. b) CURP and RFC.

In the case of Obligated Subjects that, in terms of the General Provisions issued by the Secretariat, are not obligated to constitute and maintain the aforementioned Committee, they must inform of this situation.

V. Questionnaire allowing verification that both the identification and customer due diligence policies, as well as the internal criteria, measures, and procedures adopted by Obligated Subjects, comply with what is provided in the General Provisions issued by the Secretariat.

Upon receiving the request for the issuance of the Technical Opinion, the Commission will issue the corresponding electronic receipt of acknowledgment, referred to in Article 9 of these provisions.

Article 5.- The Obligated Subject must send, along with the request for issuance of the Technical Opinion, through the formats made available by the Commission in the electronic section of SITI for such purposes, the following:

I. Documents in which the Obligated Subject develops its respective customer identification and due diligence policies, as well as the criteria, measures, or procedures it must adopt to comply with what is provided in the General Provisions issued by the Secretariat.

II. The receipt issued by the banking institution confirming that the Obligated Subject made the payment for the study, processing, and, if applicable, issuance or renewal of the Technical Opinion.

III. The public instrument referred to in subsection d) of fraction I of Article 4 of these provisions.

IV. Official identification of the legal representative or proxy.

V. The sworn statement regarding the possession of the automated system referred to in the General Provisions issued by the Secretariat, regarding Sofomes E.N.R., or that they possess it or are in the process of implementing it in the case of currency exchange centers and money transmitters, specifying the deadline by which such system will be implemented; in no case may this deadline be later than the date of their registration request.

VI. The questionnaire, duly filled out by the Compliance Officer, regarding:

1) That they are aware of the responsibilities and obligations derived from the position they will hold.
2) That they do not serve as Compliance Officer for another Obligated Subject.
3) That they will be part of the Communication and Control Committee, if such committee exists.
4) That they have experience and knowledge in PLD/FT matters.
5) That they are an official of the Obligated Subject and are not part of its commercial or operational areas.
6) That they have not been sentenced for a serious or property-related crime.
7) That they are not disqualified from conducting commerce or holding a job, position, or commission in public service, or in the Mexican financial system, nor have they been declared bankrupt without being rehabilitated.

VII. If applicable, consent for the Commission to publish for statistical purposes on its internet portal, information related to regulatory compliance in PLD/FT matters.

(3) VIII. In the case of Technical Opinion renewals, the sworn statement by the legal representative, stating that the currency exchange center or money transmitter is in operation, as well as the documentation supporting the statement.

Article 6.- In the event that the request for issuance of the Technical Opinion does not meet the requirements established in these provisions, the Commission, electronically via SITI, will notify the Obligated Subject only once to rectify the errors or omissions involved.

The Obligated Subject will have a deadline that cannot exceed ten business days, counted from the business day following the one in which the Notification of non-compliance with the requirements that the request for issuance of the Technical Opinion must contain takes effect, to rectify the errors or omissions for which they were notified, being warned that if this notification is not addressed within the specified terms and deadlines, their request will be dismissed, without prejudice to their rights to submit a new request for the same purpose.

The deadline for the issuance of the Technical Opinion established in Article 7 of these Provisions will be suspended until such time as the Obligated Subject rectifies the requirement mentioned in this article and will resume on the business day following the one in which the Obligated Subject has delivered the information, as well as, if applicable, the documentation required by the Commission.

(1) Article 7.- The Commission will have a deadline of fifty natural days, counted from the business day following the one in which the Obligated Subject received the acknowledgment referred to in Article 9 of these provisions, to notify the resolution of the Technical Opinion. In the event that the Obligated Subject is not notified within the cited deadline, it will be understood that the Technical Opinion request was resolved in a positive sense. At the interested party's request, a certificate of such circumstance must be issued within the two business days following the submission of the respective request to the Commission.

Chapter III
On the Renewal of the Technical Opinion

Article 8.- Obligated Subjects must request the Commission to renew the Technical Opinion within a deadline not exceeding one hundred fifty natural days prior to its expiration. To issue the corresponding resolution, the Commission will take into consideration the compliance that these Subjects give to what is provided in Article 95 Bis of the Law, as well as the provisions derived from it.

For the purposes of submitting the request for renewal of the Technical Opinion, the Obligated Subject must observe the same requirements provided in Articles 4 and 5 of these provisions.

(2) Third paragraph: Repealed.

Furthermore, the Commission will evaluate, within the deadline referred to in the previous Article 7, the background of Obligated Subjects in cases where administrative acts regarding observations and recommendations, actions, and corrective measures have been notified to them. To this effect, Obligated Subjects must attach a document signed by their legal representative or proxy, stating under oath the manner in which they have addressed the observations, recommendations, actions, and corrective measures imposed by the Commission during the previous three years.

(2) Last paragraph: Repealed.

Chapter IV
On Notifications

Article 9.- Notifications related to the processing and resolution of the Technical Opinion will be carried out by the Commission in the electronic section of SITI corresponding to the Obligated Subject in question, for which the Commission will send a notice to the email address registered in their request for issuance of the Technical Opinion in terms of what is provided in the Instruction Manual.

Once the Commission uploads the electronic files referred to in the previous paragraph to SITI, the corresponding notifications will take effect on the next business day; therefore, the Obligated Subject will be considered notified on that date, and an electronic record will be generated containing the Notification number, as well as the date and time of the respective upload, considering this record as a receipt of acknowledgment, for all legal effects corresponding. This is independent of whether the recipient Obligated Subject downloads or not the aforementioned electronic files.

Chapter V
On Interpretation

Article 10.- The interpretation of these provisions corresponds to the Vice Presidency of Supervision of Preventive Processes of the Commission.

TRANSITORY PROVISIONS

Sole Provision.- Regarding currency exchange centers and money transmitters, this Resolution will enter into force the day following its publication in the Official Gazette of the Federation; unregulated multiple-object financial societies must adhere to the content of this instrument, from the entry into force of the General Provisions regarding registration referred to in Article 87-K of the Law, in terms of what is provided by fraction VIII of Article Trigésimo Transitorio of the “Decree reforming, adding, and repealing various provisions in financial matters and issuing the Law to Regulate Financial Groupings” published in the Official Gazette of the Federation on January 10, 2014, mentioned above.

TRANSITORY PROVISIONS
(Resolution modifying the general provisions for obtaining the Technical Opinion for Currency Exchange Centers, Money Transmitters, and Unregulated Multiple-Object Financial Societies, published in the Official Gazette of the Federation on September 30, 2016)

SINGLE PROVISION.- This Resolution will enter into force the day following its publication in the Official Gazette of the Federation.

TRANSITORY PROVISIONS
(Resolution modifying the general provisions for obtaining the Technical Opinion for Currency Exchange Centers, Money Transmitters, and Unregulated Multiple-Object Financial Societies, published in the Official Gazette of the Federation on June 26, 2017)

FIRST.- This Resolution will enter into force the day following its publication in the Official Gazette of the Federation.

SECOND.- The National Banking and Securities Commission will issue normative instruments to comply with Article Five of the “Agreement establishing the guidelines that must be observed by the dependencies and decentralized organisms of the Federal Public Administration, regarding the issuance of general administrative acts to which Article 69-H of the Federal Administrative Procedure Law applies” within a period of six months counted from the publication of this Resolution in the Official Gazette of the Federation.

CONSIDERING
(Published on September 30, 2016)

That it is necessary to expedite and make more efficient the procedure for obtaining the technical opinion regarding the prevention of operations with resources of illicit origin and terrorist financing, it has resolved to issue the following:

CONSIDERING
(Published on June 26, 2017)

That it is necessary to require, for the renewal of the technical opinion that currency exchange centers and money transmitters must obtain, a statement regarding whether the society is in operation, in order to renew only those that are operating, since failure to perform the operations for which the registration was granted is a cause for revocation of the registration to operate as such, and

That in order to comply with the “Agreement establishing the guidelines that must be observed by the dependencies and decentralized organisms of the Federal Public Administration, regarding the issuance of general administrative acts to which Article 69-H of the Federal Administrative Procedure Law applies,” the National Banking and Securities Commission intends to issue various modifying resolutions to normative instruments to grant a longer deadline for compliance with capital requirement provisions applicable to popular financial societies, and eliminate the capital cost derived from the implementation of exchange rate coverage programs issued by the Bank of Mexico applicable to credit institutions, it has resolved to issue the following:

REFERENCES

1) Modified by Resolution published in the Official Gazette of the Federation on September 30, 2016.
2) Repealed by Resolution published in the Official Gazette of the Federation on September 30, 2016.
3) Added by Resolution published in the Official Gazette of the Federation on June 26, 2017.