JPRFM-2025-006-G — Authorizes the Interior Ministry to open a yen account at MUFG Bank to manage Japan's donation to Ecuador for National Police patrol capacity, per the Economy and Finance report

RESOLUTION No. JPRFM-2025-006-G
THE FINANCIAL AND MONETARY POLICY AND REGULATION BOARD CONSIDERING:
That, the Constitution of the Republic of Ecuador, in Article 226, stipulates that public officials and persons acting under state authority shall exercise only the competencies and powers attributed to them in the Constitution and the Law; That, Article 227 ibid. states that the Public Administration constitutes a service to the community governed by the principles of effectiveness, efficiency, quality, hierarchy, coordination, planning, among others; That, Article 299 supra, in its pertinent part, states that special accounts will be created at the Central Bank of Ecuador for the management of deposits from public companies and decentralized autonomous governments, and other corresponding accounts, providing that public resources shall be managed in public banking; That, the first paragraph of Article 303 of the constitutional norm determines that the formulation of monetary, credit, exchange, and financial policies is the exclusive authority of the Executive Branch and shall be implemented through the Central Bank of Ecuador; That, on October 13, 2025, the Organic Law Reforming the Organic Monetary and Financial Code was published in the Sixth Supplement of the Official Register No. 142; That, the reformed Article 13 of the Organic Monetary and Financial Code creates the Financial and Monetary Policy and Regulation Board, part of the Executive Branch, as an organ with functional, technical, institutional, and decision-making autonomy, responsible for the formulation of monetary, credit, financial, securities, insurance, and prepaid comprehensive health care services policy and regulation. The Financial and Monetary Policy and Regulation Board shall be the highest governing body of the Central Bank of Ecuador; That, Article 17 ibid. establishes the general functions of the Board in the monetary sphere, among which are provided the other functions, duties, and powers assigned to it by Law;

RESOLUTION No. JPRFM-2025-006-G
That, Article 24 of the same Code provides that the acts of the Financial and Monetary Policy and Regulation Board enjoy the presumption of legality and shall be expressed through resolutions that shall have mandatory force, which shall govern from their publication in the Official Register, or from the date of their issuance when so determined by the Board, in accordance with the subject matter; That, Article 25.2 ibid. determines that the Technical Secretariat of the Financial and Monetary Policy and Regulation Board shall be exercised by the Central Bank of Ecuador, and Article 25.3 establishes as its functions the preparation of technical and legal reports to support regulatory proposals, provide technical and administrative support to the Financial and Monetary Policy and Regulation Board, and those otherwise assigned by said Board; That, numeral 15 of Article 36 of the aforementioned Code regarding the functions of the Central Bank of Ecuador establishes: "(...) 15. Act as fiscal, financial, and depository agent of public resources and provide banking services to public sector entities and the national financial system, according to the market remuneration determined by the Monetary Policy and Regulation Board"; That, Article 36.2 of the same Code provides: "The Central Bank of Ecuador, to carry out its operations, may open and maintain current accounts in its books for:

1. National financial entities and public sector entities;
2. Foreign banks, central banks, international financial institutions, and, when necessary, foreign governments, international organizations, and donor organizations; and,
3. Entities participating in the Securities Market, except issuers.
   The Central Bank of Ecuador shall not open current accounts for natural persons.
   The Financial and Monetary Policy and Regulation Board shall establish the conditions to open and close current accounts in the books of the Central Bank of Ecuador"; That, the first and third paragraphs of Article 40 ibid. establish: "Public resources of institutions, agencies, and companies of the non-financial public sector shall be maintained on deposit at the Central Bank of Ecuador, in accordance with the regulations issued by the Financial and Monetary Policy and Regulation Board. (…) Entities of the national financial system shall not open, in the name of public institutions, any other type of account, unless they have the authorization granted by the Monetary Policy and Regulation Board, prior to a favorable report from the public finance regulatory authority. This prohibition shall apply especially to accounts with transfer capacity (...)"; That, Article 41 of the same Organic Code provides: "Institutions, agencies, and companies of the non-financial public sector shall make all payments they are required to make, as well as all operations and financial services they require, including foreign trade operations, through the Central Bank of Ecuador or its accounts, in accordance with the regulations and exceptions issued by the Financial and Monetary Policy and Regulation Board (…)"; That, General Provision Twenty-Ninth ibid. states: "In existing legislation where mention is made, indistinctly, of the Monetary and Financial Policy and Regulation Board, the Monetary Policy and Regulation Board; or, the Financial Policy and Regulation Board, replace and understand as 'Financial and Monetary Policy and Regulation Board'"; That, Article 162 of the Organic Code of Public Planning and Finance establishes: "Public resources shall be managed through public banking, considering, where pertinent, the respective technical standards and management capacities of the entities that make up public banking. The collection, payment, or transfer of said resources may be carried out through other financial entities"; That, the second and third paragraphs of Article 163 of the aforementioned Organic Code determine: "For the management of deposits and credits of public companies, decentralized autonomous governments, and others corresponding, special accounts will be created at the Central Bank of Ecuador. Any organism, entity, and dependency of the Non-Financial Public Sector, with or without economic and/or budgetary and/or financial autonomy, shall credit the entirety of public financial resources it obtains, collects, or receives in any form to the respective accounts opened at the Central Bank of Ecuador (…)"; That, General Provision First of the same Organic Code establishes: "Regardless of the origin of the resources, entities and organisms of the public sector shall not create accounts, funds, or other mechanisms for managing income and expenses that are not authorized by the regulatory authority of the Public Finance System"; That, through Resolution
   No. JPRM-2025-006-M, of July 16, 2025, the former Monetary Policy and Regulation Board issued the "Codification of Monetary Policy Resolutions and Central Bank of Ecuador Operations", in whose Title II, Chapter I, Section 5, Subsection 4 contains the provisions regarding the authorization of accounts abroad for purposes other than debt service; That, Article 59 of Subsection 4 "Authorization of accounts abroad for purposes other than debt service", of Section 5 "Central Bank of Ecuador Services to Operate with the Exterior", of Chapter I "On the Operations of the Central Bank of Ecuador", of Title II "Central Bank of Ecuador Operations Policies" of the aforementioned Codification establishes: "The Monetary Policy and Regulation Board may authorize non-financial public sector entities to open, maintain, and manage accounts abroad to receive donations granted by foreign governments, multilateral entities, or international organizations, prior to favorable reports from the public finance regulatory authority and the Central Bank of Ecuador, within the scope of their attributions and competencies"; That, Article 60 of the aforementioned subsection provides: "The opening of accounts abroad shall be managed by the authorized non-financial public sector entities and must be issued in their name, under their absolute control and responsibility"; That, Article 61 ibid. establishes: "It corresponds to non-financial public sector entities to manage, control, and fulfill the objectives of the donations received in the authorized accounts abroad"; That, through Office No. MEF-MEF-2025-0576-O, of September 16, 2025, the Ministry of Economy and Finance forwarded the "Favorable Report - Opening of a current account abroad at the Bank of Tokyo Mitsubishi UFJ (MUFG) in the name of the Ministry of the Interior to instrument a donation from the Government of Japan". That, through Office No. MDI-DMI-2025-2585-OF, of September 17, 2025, the Ministry of the Interior requested to carry out the pertinent procedures before the Financial and Monetary Policy and Regulation Board, corresponding for the opening of the current account at the Bank of Tokyo Mitsubishi UFJ (MUFG), in the Republic of Japan, in the name of the Ministry of the Interior, intended for the receipt and administration of the donation granted by the Japanese Government; That, Transitional Provision First of the Organic Law Reforming the Organic Monetary and Financial Code determines that the members of the Financial and Monetary Policy and Regulation Board, sworn in on September 16, 2025 by the National Assembly, will continue to exercise their functions for the periods they were designated and will maintain their labor continuity and acquired rights; That, through Office No. T.233-SGJ-25-098, of September 5, 2025, signed by the Constitutional President of the Republic, addressed to the President of the National Assembly, he sent the list of candidates for the designation of the Members of the Financial
   and Monetary Policy and Regulation Board; as well as, the temporality of their stay within the initial period; That, the Plenary of the National Assembly, on September 16, 2025, designated and swore in the members of the Financial and Monetary Policy and Regulation Board, in the persons of: Gustavo Estuardo Camacho Dávila; Silvia Daniela Moya Arteta; Roberto Javier Basantes Romero; María Isabel Camacho Cárdenas; and, Jeniffer Nathaly Rubio Abril; That, the Financial and Monetary Policy and Regulation Board, through ordinary session No. 005-2025, under mixed modality, on October 31, 2025, reviewed the proposal forwarded through Memorandum No. BCE-BCE-2025-0224-M, of October 17, 2025, by the General Manager of the Central Bank of Ecuador to the President of the Financial and Monetary Policy and Regulation Board, as well as the Technical Report No. BCE-GISI-061-2025 / BCE-SSFI-090-2025, of October 16, 2025, and the Legal Report No. BCE-GJ-048-2025, of October 17, 2025; and, In exercise of its functions and in attention to Article 24 of the Organic Monetary and Financial Code, the Financial and Monetary Policy and Regulation Board:
   RESOLVES:
   Article 1. - Authorize the Ministry of the Interior to open and maintain a current account in yen at MUFG Bank Ltd., Tokyo, Japan, which will serve to instrument the donation granted by the Government of Japan to the Republic of Ecuador, aimed at strengthening the operational patrol capacity of the National Police of Ecuador, in accordance with the favorable report issued by the Ministry of Economy and Finance.
   Article 2.- It shall be the absolute responsibility of the Ministry of the Interior to manage and control the account that is opened at MUFG Bank Ltd., Tokyo, Japan; as well as, the correct administration of the resources and the fulfillment of the objectives of the donation received in the aforementioned account.
   SINGLE GENERAL PROVISION. - The Ministry of the Interior must inform the Ministry of Economy and Finance and the Central Bank of Ecuador of the opening and closing date of the authorized account.
   The Ministry of the Interior must close the authorized account once the purpose for which this authorization is requested has been concluded.
   FINAL PROVISION. - This resolution shall enter into force from its issuance, without prejudice to its publication in the Official Register.
   Publication on the institutional website is entrusted to the General Secretariat of the Central Bank of Ecuador.
   COMMUNICATE AND PUBLISH. - Given in the city of Cuenca, on October 31, 2025.
   THE PRESIDENT
   Mgs. Gustavo Estuardo Camacho Dávila
   The aforementioned resolution was processed and signed by Master Gustavo Estuardo Camacho Dávila - President of the Financial and Monetary Policy and Regulation Board, in the city of Cuenca, on October 31, 2025.- I CERTIFY.
   TECHNICAL SECRETARIAT
   Lcdo. Julio Fernando Moya Jarrín