Law to Regulate Credit Information Companies — CNBV — MX

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LAW TO REGULATE CREDIT INFORMATION COMPANIES
Published in the Official Gazette of the Federation on January 15, 2002.
Updated with reforms published in the same Gazette on January 23, 2004; February 1, 2008; January 20, 2009; May 25, 2010; January 10, 2014, March 9, 2018 and January 24, 2024.

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LAW TO REGULATE CREDIT INFORMATION COMPANIES
INDEX
Title One
Single Chapter
General Provisions
Title Two
Chapter I
On Credit Information Companies
Chapter II
On the Database
Chapter III
On the Provision of Credit Information Services
Chapter IV
On the Protection of Client Interests
Chapter V
On Sanctions
Section I
General Provisions
Section II
Sanctions that the Commission May Impose
Section III
Sanctions that the Bank of Mexico May Impose
Section IV
Sanctions that the Federal Consumer Protection Agency May Impose
Chapter VI
Debt Relief and Restructuring
Transitory Articles
Statement of Reasons
References

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LAW TO REGULATE CREDIT INFORMATION COMPANIES
TITLE ONE
SINGLE CHAPTER
GENERAL PROVISIONS
Article 1.- This law aims to regulate the constitution and operation of credit information companies. Its provisions are of public order and of general observance throughout the national territory.
(3) Article 2.- For the purposes of this law, the following terms shall be understood in singular or plural as:
(3) I. Primary Data Base, that which is integrated with information on overdue portfolio provided directly by Users to the Companies, in the form and terms in which it is received from them. For the purposes of this law, the Companies shall consider as overdue portfolio that defined as such in the provisions applicable to credit institutions issued by the Commission. (3) The Primary Data Base shall also be integrated with information on fraudulent credit operations. (3) II. Client, any natural or legal person who requests or on whom information is requested from a Company;
III. Commission, The National Banking and Securities Commission;
(3) IV. Commercial Company, the legal person or public body other than Financial Entities, that carries out credit operations related to the sale of its products or provision of services, or other of an analogous nature; the economic development trusts constituted by the States of the Republic and by the Federal District, as well as the legal person and the trust that acquire or administer credit portfolio. The aforementioned trusts shall continue to be considered Commercial Companies, even if they are in the process of extinction; (13) V. Financial Entity, that authorized to operate in national territory and recognized as such by the laws, including those referred to in article 12 of the Law to Regulate Financial Groupings; development banking; public bodies whose main activity is the granting of credits, as well as the economic development trusts constituted by the Federal Government; credit unions; savings and loan cooperatives, community financial societies, fintech institutions, and, with the exception of SOFOM E.N.R., the aforementioned persons shall continue to be considered Financial Entities, even if they are in the process of dissolution, liquidation or extinction, as applicable; (3) VI. Condusef, The National Commission for the Protection and Defense of Users of Financial Services; (3) VII. Profeco, The Federal Consumer Protection Agency; (8) VIII. Credit Report, the information formulated documentally or electronically by a Company to be provided to the User who has requested it in terms of this law, which meets the requirements of article 36 Bis of this law, without mentioning the denomination of the Financial Entities, Commercial Companies or SOFOMs E.N.R., creditors; (8) IX. Special Credit Report, the information formulated documentally or electronically by a Company that contains the credit history of a Client who requests it in terms of this law, which meets the requirements of article 36 Bis of this law, and which includes the denomination of the Financial Entities, Commercial Companies or SOFOMs E.N.R., creditors; (3) X. Secretariat, the Ministry of Finance and Public Credit;

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(3) XI. Financial Secrecy, as referred to in articles 117 of the Credit Institutions Law, 192 of the Securities Market Law, 55 of the Investment Companies Law and 34 of the Popular Savings and Credit Law, as well as the analogous ones contained in the other applicable legal provisions; (3) XII. Company, the credit information company; (3) XIII. SOFOM E.N.R., the unregulated multiple-object financial society; (3) XIV. UDIS, the investment units, and (3) XV. User, the Financial Entities, the Commercial Companies and the SOFOMs E.N.R., that provide information or make inquiries to the Company.
Article 3.- The Federal Executive, through the Secretariat, may interpret the provisions of this law for administrative purposes.
Article 4.- In matters not provided for by this law, the Federal Administrative Procedure Law shall apply supplementarily for the purposes of notifications. This provision shall not be applicable to the client complaint procedure provided for in this law.
TITLE TWO
CHAPTER I
ON CREDIT INFORMATION COMPANIES
(3) Article 5.- The provision of services consisting of the collection, handling and delivery or sending of information relating to the credit history of natural and legal persons, as well as of credit operations and other of an analogous nature that they maintain with Financial Entities, Commercial Companies or SOFOMs E.N.R., may only be carried out by Companies that obtain the authorization referred to in article 6 of this law. It shall not be considered that there is a violation of Financial Secrecy when Users provide information on credit operations or other of an analogous nature to the Companies, as well as when they share with each other information contained in their databases or provide such information to the Commission. Nor shall it be considered that there is a violation of Financial Secrecy when the Companies provide such information to their Users, in terms of Chapter III of this Title Two, or when it is requested by competent authority, within the framework of their attributes.
Article 6.- To be constituted and operate as a Credit Information Company, authorization from the Federal Government is required, which is entrusted to the Secretariat, hearing the opinion of the Bank of Mexico and the Commission. By their nature, these authorizations shall be non-transferable.
ARTICLE 7.- The application to be constituted and operate as a Company shall contain the following:
I. List of shareholders indicating the capital each of them will subscribe and pay as well as, if applicable, their curricula vitae;
II. List of the directors and main officials of the Company, including those who hold positions with hierarchy immediately below that of the general director, as well as their curricula vitae;
III. Draft bylaws;
IV. Proof that resources are available to contribute the capital referred to in article 8 of this law;
V. General operating program, which shall include at least:

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The description of the computer systems and processes for the collection and handling of information;
The characteristics of the products and services that will be provided to Users and Clients;
The service provision policies with which they intend to operate;
Security and control measures to avoid improper handling of information;
The organizational bases;
The detailed three-year investment program, and
The schedule for the opening of offices and positions in which they will be located, and
VI. The rest of the information and related documentation that the Secretariat requests in writing in order to evaluate the respective application.
(12) Article 7 Bis.- The Federal Government may have a parastatal entity constituted as a credit information company, which is part of the financial system, without the authorization provided for in article 6 of this Law being required for this purpose. Nevertheless, at all times it must be subject to the provisions of this legislation and the others that result applicable due to the function it performs.
Article 8.- Companies must have a minimum capital, fully subscribed and paid, which shall be determined by the Commission through general provisions.
(11) The shares representing the social capital of the Companies shall be freely subscribable.
(12) Foreign governments shall not participate, directly or indirectly, in the social capital of the Companies, except in the following cases:
(12) I. When they do so, due to temporary prudential measures such as financial support or bailouts.
(12) Companies that fall under the provision of this section must deliver to the Commission the information and documentation that proves satisfaction of the aforementioned, within fifteen business days following the date on which they find themselves in said situation. The Commission shall have a period of ninety business days, counted from the receipt of the corresponding information and documentation, to resolve, prior agreement of its Board of Directors, whether the participation in question falls under the exception provided for in this section. (12) II. When the corresponding participation implies having control of the Company, in terms of the last paragraph of this article, and is carried out through official legal persons, such as funds, government development entities, among others, with prior discretionary authorization of the Commission, with agreement of its Board of Directors, provided that in its judgment such persons prove that:
(12) a) They do not exercise authority functions, and (12) b) Their decision-making bodies operate independently of the foreign government in question.
(12) III. When the corresponding participation is indirect and does not imply having control of the Company, in terms of the last paragraph of this article. The foregoing, without prejudice to the notices or authorization requests that must be made in accordance with what is established in this Law.
(2) No User may participate under any title in more than 18% of the social capital of a Company or control it directly or indirectly. The following shall be included within said limit or control, individually or collectively:
(2) a) Persons who control the User;

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(2) b) Persons who are controlled by the User; (2) c) Persons who are controlled by the same persons who control the User; (2) d) Persons who control the subjects mentioned in the preceding subsection a), and (2) e) Other persons whose control, in the judgment of the Secretariat, represents a conflict of interest.
(2) For the purposes of this article, it shall be understood that a person controls another when by any means they have decision-making power in their shareholders' meetings, are in a position to appoint the majority of the members of their administration body, or by any other means have the authority to take the fundamental decisions of the company.
(4) Article 8 Bis.- The administrative council of the Companies shall be composed of a minimum of five and a maximum of twenty full directors, of whom at least twenty-five percent must be independent. For each full director, their respective alternate may be designated, understanding that the alternate directors of the independent directors must have this same character. (4) By independent director, it shall be understood as the person who is external to the administration of the respective Company, and who meets the requirements and conditions determined by the Commission, through general provisions, in which the circumstances under which a director is considered to cease being independent, for the purposes of this article, shall also be established. (4) Under no circumstances may the following be independent directors:
(4) I. Employees or executives of the Company or of the companies that belong to the same economic group of which the Company is part; (4) For the purposes of this article, it shall be considered that a Company is part of an economic group when one or more natural or legal persons of that economic group are owners, individually or jointly, of at least fifteen percent of the shares representing the social capital of the Company in question. (4) II. Shareholders who, without being employees or executives of the Company, have command power over its executives; (4) For the purposes of this article, command power shall be considered as the factual capacity to decisively influence the agreements adopted in shareholders' meetings or board of administration sessions or in the management, conduct and execution of the business of a Company or of the legal persons that it controls. (4) III. Partners or employees of societies or associations that provide advisory or consulting services to the Company or to the companies that belong to the same economic group of which it is part, whose income represents ten percent or more of their income; (4) IV. Users, suppliers, partners, directors or employees of a company that is an important User or supplier of the Company. (4) A User or supplier is considered important when the services provided by the Company or the sales made to it represent more than ten percent of the total services or sales of the User or supplier, respectively. (4) V. Employees of a foundation, association or civil society that receive important donations from the Company. (4) Important donations are considered those that represent more than fifteen percent of the total donations received by the foundation, association or civil society in question;

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(4) VI. General directors or high-level executives of a company in whose board of administration participates the general director or a high-level executive of the Company; (4) VII. Spouses or common-law partners, as well as relatives by blood, affinity or civil law up to the first degree with respect to any of the persons mentioned in the preceding sections III to VI, or up to the third degree, in relation to those indicated in sections I, II and VIII of this article, and (4) VIII. Those who in the twelve months immediately preceding the moment in which their appointment is intended to be made have held a management or administrative position in the Company, (b) in a User of that Company, (c) in the companies that belong to the same economic group of which the Company is part, or (d) in the financial group to which, if applicable, said User belongs. (4) The council shall meet as many times as necessary but at least quarterly. The president of the council, directly or through the secretary thereof, may convene a council session. So may the directors representing at least thirty percent of the directors or at least two independent directors, or any of the auditors of the Company. For the holding of the board of administration sessions in first call, there must be the attendance of at least fifty-one percent of the directors, of whom at least one must be an independent director. The president of the council shall have a casting vote in case of a tie. (4) Shareholders representing at least ten percent of the paid ordinary capital of the Company shall have the right to designate a director and their respective alternate. The appointment of minority directors may only be revoked when the appointment of all other directors is revoked. (4) Those directors who have been designated by shareholders who have the character of Users or who are officials of Users, must have the level of general director of the User they represent or of the two first immediate lower management levels, or be shareholders or directors of said User. (4) Directors are obliged to expressly abstain from participating in the deliberation and voting of any matter that implies a conflict of interest for them. Likewise, they must maintain absolute confidentiality regarding all those acts, facts or events related to the Company of which they are a director, as well as any deliberation that takes place in the council. (12) Article 8 Bis 1.- The Companies shall abstain, if applicable, from registering in the registry referred to in articles 128 and 129 of the General Law of Commercial Societies the transfers of shares that are carried out in contravention of what is provided by article 8 of this Law, and must inform such circumstance to the Commission, within five business days following the date on which they have knowledge thereof. (12) When the acquisitions and other legal acts through which direct or indirect ownership of shares representing the social capital of a Company is obtained,
are carried out in contravention of what is provided by article 8 of this Law, the patrimonial and corporate rights inherent to the corresponding shares of the Company shall be suspended and therefore cannot be exercised, until it is proven that the corresponding authorization or resolution has been obtained.
Article 9.- The appointment of the directors and the general director of the Companies must fall on persons of recognized technical quality, honorability and satisfactory credit history, as well as with extensive knowledge and experience in financial or administrative matters.
Under no circumstances may the following occupy the positions referred to in the preceding paragraph:
I. Persons convicted by final judgment for intentional crimes, those disqualified from exercising commerce or for holding an employment, position or commission in the public service, or in the Mexican financial system, for the duration of their disqualification;

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II. Bankrupts and those in bankruptcy proceedings who have not been rehabilitated, and
III. Those who perform regulatory, inspection or surveillance functions regarding the Companies.
(3) Persons who provide their services in any User, Financial Entity, Commercial Company or SOFOM E.N.R. may not be officials of the Companies.
The Company must verify that the persons who are designated as directors and general director comply, prior to the start of their term, with the requirements set forth in this article. The Commission may establish, through general provisions, the criteria by which the files that prove compliance with what is stated in this article must be integrated.
The Companies must inform the Commission of the appointments of directors and the general director within five business days following their appointment, expressly stating that they meet the applicable requirements.
The Commission, having previously heard the interested party and the affected Company, may determine that one or more members of the board of administration and the general director of the Company be suspended, when they do not have sufficient technical quality, honorability and satisfactory credit history to perform their functions, or incur in a serious or repeated manner in violations of this law or the general provisions derived from it. In the cases of serious or repeated violations referred to in the preceding paragraph, the Commission may also disqualify the aforementioned persons from holding an employment, position or commission within the Mexican financial system, for a period of six months to five years, without prejudice to the sanctions that under this or other legal orders are applicable. For the exercise of the attributes conferred by this article, the Commission must have a database on the history of persons who participate in the financial sector. The resolutions referred to in this article may be appealed before the Secretariat within fifteen days following the date on which they were notified. The Secretariat itself may revoke, modify or confirm the appealed resolution, prior to a hearing of the parties.
Article 10.- Authorization from the Secretariat, who shall hear the opinion of the Commission and the Bank of Mexico, is required for any person or group of persons to acquire, directly or indirectly, through one or several operations, simultaneous or successive, the control of a Company.
For the purposes stated in this article, it shall be understood that a person or group of persons acquires control of a Company when they are the owner of fifty-one percent or more of the shares with voting rights representing the paid capital of the Company, have control of the general shareholders' meeting, are in a position to appoint the majority of the members of the board of administration or by any other means control the Company in question.
Article 11.- Any modification to the bylaws of the Companies must be submitted to the prior approval of the Secretariat, for subsequent registration in the Public Commerce Registry.
The Companies shall inform the Secretariat, the Commission, and the Bank of Mexico of the date on which they will begin activities.
Article 12.- The Companies must subject their operations and activities to this law and to the general provisions issued by the Bank of Mexico.
(3) Article 13.- Companies may only carry out the activities necessary for the realization of their purpose, including the service of credit or risk rating, the service of verification or confirmation of identity or general data, as well as other analogous and related activities authorized by the Secretariat, hearing the opinion of the Bank of Mexico and the Commission.

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(4) The Societies, when offering credit or risk rating services referred to in the preceding paragraph, must consider all available information in their database without discriminating against information provided by any User.
(12) Regarding credit rating services, the Societies may carry out numerical valuations regarding Clients, in accordance with the general provisions issued by the Commission, prior agreement of its Board of Directors.
(12) Such provisions shall establish the cases and terms under which Financial Entities may access said valuations exclusively to determine the Client's eligibility for financial product offerings, without needing the authorization referred to in Article 28 of this Law, provided that the personal data of the same are protected at all times.
(4) The Societies must offer Clients who request it, under the terms agreed upon with them, the service consisting of informing them when Users consult their credit history, as well as when they send information regarding the lack of timely payment of any due obligation.
Article 14.- The Societies must notify the Commission of the establishment, change of location, or closure of any of their offices, at least thirty natural days in advance.
Article 15.- The Societies may invest in securities representing the social capital of companies that provide them with complementary or auxiliary services in their administration or in the performance of their object, as well as of real estate societies that are owners or administrators of properties intended for their offices.
Article 16.- The Societies require authorization from the Secretariat to merge or split, prior opinion of the Bank of Mexico and the Commission. When the dissolution and liquidation of the Society is agreed upon, they must notify the Secretariat and the Bank of Mexico, so that such Society adjusts to what the latter indicates to them regarding the handling and control of their database.
(14) Article 17.- The Societies are subject to the inspection and surveillance of the Commission, to which they must pay the fees in the terms established by the Secretariat, as well as to that of the Bank of Mexico, within the scope of their respective competencies.
(11) The Societies must provide Users, Clients, and competent authorities with the information and documents that the Bank of Mexico and the Commission determine through general provisions, in terms of the law applicable to them, in order for the Societies to properly fulfill their functions and obligations. Likewise, the Societies must provide both the Bank of Mexico and the Commission, within the deadlines and through the means that these establish through the respective general provisions issued for this purpose, the information they require for the exercise of the powers conferred by law on each authority, as well as for the purpose of statistical dissemination or other that is determined through general provisions. (11) The Commission is empowered to request a quarterly report from the Societies on the status of the record deletion process in terms of this Law. The information and databases that the Societies provide to the Bank of Mexico and the Commission may be retained by these authorities. (12) Article 17 Bis.- With the aim of preserving financial stability, avoiding interruptions or alterations in the functioning of the financial system or the payment system, as well as to facilitate the adequate fulfillment of their functions, the Secretariat, the Commission, and the Bank of Mexico must, at the request of the interested authority, and in terms of the agreements referred to in the last paragraph of this article, exchange among themselves the information they have in their possession having obtained it:
(12) I. In the exercise of their powers;
(12) II. As a result of their action in coordination with other entities, persons, or authorities or,

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(12) III. Directly from other authorities.
(12) The restrictions relative to reserved or confidential information in terms of applicable legal provisions are not opposable to the power mentioned in the preceding paragraph. Whoever receives the information referred to in this article will be administratively and criminally responsible, in terms of applicable legislation, for the dissemination to third parties of confidential or reserved information. (12) For the purposes of the provisions of this article, the aforementioned authorities must celebrate information exchange agreements in which they specify the information subject to exchange and determine the terms and conditions to which they must be subject thereto. Likewise, said agreements must define the degree of confidentiality or reservation of the information, as well as the respective control instances to which cases where the delivery of information is denied or its delivery is made outside the established deadlines will be reported. (12) Article 17 Bis 1.- The Secretariat, the Commission, and the Bank of Mexico, within the scope of their competence, are empowered to provide foreign financial authorities with all kinds of information they deem appropriate to address the requests made to them, such as documents, certificates, records, declarations, and other evidence that such authorities have in their possession having obtained it in the exercise of their powers. (12) For the purposes of the provision in the preceding paragraph, the authorities must have signed an information exchange agreement with the foreign financial authorities concerned, in which the principle of reciprocity is contemplated. (12) The Commission is empowered to deliver to foreign financial authorities the information protected by confidentiality provisions that is in its possession having obtained it in the exercise of its powers, acting in coordination with other entities, persons, or authorities or directly from other authorities. (12) The Bank of Mexico is empowered to deliver to foreign financial authorities the information protected by confidentiality provisions that is in its possession having obtained it directly in the exercise of its powers. Likewise, the Bank of Mexico is empowered to deliver to foreign financial authorities information protected or not protected by confidentiality provisions that it obtains from other authorities of the country, only in cases where it is expressly authorized in the information exchange agreement by virtue of which it received said information. (12) In any case, the Commission and the Bank of Mexico may abstain from providing the information referred to in the two preceding paragraphs, when the use intended for it is different from that for which it was requested, is contrary to public order, national security, or the terms agreed upon in the respective information exchange agreement. (12) The Secretariat, the Commission, and the Bank of Mexico must establish coordination mechanisms for the purposes of delivering the
information referred to in this article to foreign financial authorities. (12) The delivery of information carried out in terms of this article does not imply any transgression of the obligations of reserve, confidentiality, secrecy, or analogous ones that must be observed in accordance with applicable legal provisions.
Article 18.- It is prohibited to the Societies:
I. Request and provide information other than that authorized in accordance with this law and other applicable provisions;
II. Exploit on their own behalf or on behalf of third parties commercial or industrial establishments or rural estates and, in general, invest in societies of any kind other than those indicated in this law; and
III. Carry out activities not contemplated in this law and other applicable provisions.

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(14) Article 19.- The Secretariat, with the opinion of the Commission and the Bank of Mexico and prior hearing of the interested society, may revoke the authorization granted in cases where the Society:
I. Repeatedly refuses to provide information and documents to the Bank of Mexico or to any of the commissions in charge of the inspection and surveillance of Entities that request such information in the terms set forth by this law;
II. Commits serious or repeated violations of Financial Secrecy.
III. Does not begin activities within six months following the date on which the authorization was granted;
IV. Repeatedly infringes the provisions of Article 35 of this law;
V. Alters, modifies, or repeatedly eliminates any record from its database, except for the cases provided for in this law;
(9) VI. Repeatedly omits to apply the tariffs determined by the Commission in terms of Articles 36 or 36 Bis of this Law; (9) VII. Repeatedly omits to transmit or update to other Societies the information provided for in this law, and
VIII. Seriously or repeatedly infringes this law or any other applicable provision.
(15) The Secretariat will grant the right of hearing to the interested society, in order that, within the deadline of ten business days, counted from the business day on which the corresponding notification takes effect, it expresses in writing what is convenient for its interest and offers proof. The Secretariat, at the request of the party, may extend once the deadline referred to in this section, up to the same period, attending to the particular circumstances of the case. Notifications take effect on the next business day after they are carried out. (15) Once the deadline referred to in the preceding paragraph, and if applicable, that of its extension, has concluded, the Secretariat will have a deadline of up to sixty business days for the resolution of the proofs. Once the deadline for the resolution of the proofs has passed, the Secretariat will notify the opening of a five-business-day period to formulate allegations. The Secretariat may carry out such notification by court records or by any other means it determines. On the next business day after the expiration of the deadline to formulate allegations, the instruction will be considered closed and the Secretariat will have a deadline no greater than one hundred eighty business days to issue and notify the resolution that ends the revocation procedure. (15) The Commission and the Bank of Mexico must issue the opinion referred to in the first paragraph of this article, at least thirty business days in advance of the expiration of the deadline provided for issuing the resolution that ends the revocation procedure. In case any of the referred opinions is issued after the stated deadline, the Secretariat may resolve what corresponds with the records in the file, without needing to consider the opinion presented late. (15) The declaration of revocation will be published in the Official Journal of the Federation and must be registered in the Public Commerce Register corresponding to the social domicile of the Society in question, for which the Register will only require prior notification from the Secretariat. The revocation will incapacitate the society to carry out its activities from the date on which it is notified and put it in a state of dissolution and liquidation without the need for the agreement of the shareholders' assembly. (15) Once the revocation is registered in the Public Commerce Register, the National Banking and Securities Commission will promote before the judicial authority to appoint the liquidator if within the deadline of sixty business days of the publication of the revocation in the Official Journal of the Federation it has not been appointed. (9) Article 19 Bis. The Commission may, prior to the right of hearing of the Societies, suspend or limit partially the carrying out of the activities necessary for the performance of its object, in terms of this law, when such activities fall under any of the following situations:

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(9) I. There is repeated non-compliance with the provisions of this law or the general provisions emanating from it; (9) II. Prohibited operations are carried out or those that are not expressly permitted or authorized in terms of this law or the provisions emanating from it.
(9) The suspension order referred to in this article is without prejudice to the sanctions that may result applicable in terms of the provisions of this law and other provisions.
CHAPTER II
ON THE DATABASE
(8) Article 20.- The database of the Societies will be integrated with information on credit operations and others of an analogous nature that is provided to them by the Users. The Users who deliver such information to the Societies must do so in a complete and truthful manner; likewise, they are obliged to expressly indicate the origin date of the credits they register and the date of the first default. The Societies must not register for any reason credits whose origin date is not specified by the Users, or when it has a delinquency age in portfolio greater than 72 months. The foregoing, in accordance with what is established in Articles 23 and 24 of this law. (3) In case the information provided by the User relates to a legal entity, the User must include the shareholders or holders of the social parts, as appropriate, who are owners of 10% or more of the social capital. (11) Financial Entities must provide, in accordance with the general provisions issued for this purpose by the Bank of Mexico, information related to their credit operations, at least to one of the Societies organized in accordance with this Law. (6) When the client fulfills an obligation, the User must provide the Society with the information on the corresponding payment and the elimination of the corresponding prevention or observation key. The User must send such information within five business days following the payment. In the case referred to in the fifth paragraph of Article 27 bis, Users will have a deadline of up to ten business days to send the updated information to the Society. (4) In the case referred to in the preceding paragraph, the Societies will have a deadline of up to three business days counted from the date on which they have received the information from the Users, to update such information in their databases. (11) When clients adhere to credit recovery programs of Financial Entities, Commercial Companies, or Sofomes E.N.R., Users must report to the Credit Information Societies such credits as settled, in case they have been finalized. (12) Article 20 Bis.- Users are prohibited from reporting to Credit Information Societies information regarding credits not contracted by a Client. (12) Regarding information regarding credits, loans, or revolving financing associated with a card that has not been requested or contracted by a User, Credit Information Societies will proceed to delete from the database, within five business days following the request of the affected Client, the information that has been reported. For the purposes of this paragraph, a card not requested or contracted will be understood, unless proof to the contrary, as one that has had no credit line dispositions and only presents charges for commissions. (3) Article 21.- The Societies will establish prevention and observation keys, as well as standardized operational manuals that must be used by the different types of Users, to carry out the registration of information in their database,
as well as for the issuance, rectification, and interpretation of Credit Reports and Special Credit Reports that the Society issues.

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(3) The prevention and observation keys, as well as the operational manuals cited in the preceding paragraph and their modifications, must be approved by the board of directors of the Society. Additionally, the aforementioned keys and their modifications must be approved by the Commission.
Article 22.- The Society must adopt the security and control measures that prove necessary to avoid improper handling of information.
For the purposes of this law, improper use or handling of information will be understood as any act or omission that causes damage to the patrimony of the subject from whom information is held, as well as any action that translates into a patrimonial benefit in favor of the officials and employees of the Society or of the latter itself, provided that it does not derive from the proper performance of its object. (3) Article 23.- The Societies are obliged to conserve the credit histories provided to them by the Users, corresponding to any natural or legal person, for at least a period of seventy-two months. (3) The Societies may eliminate from the Client's credit history that information that reflects the fulfillment of any obligation, after seventy-two months since such fulfillment was incorporated into said history. (3) In case of information reflecting uninterrupted non-fulfillment of any due obligation as well as the corresponding prevention keys, the Societies must eliminate them from the Client's corresponding credit history, after seventy-two months since the non-fulfillment was first incorporated into said history. (3) In the case of credits where there are both defaults and payments, the Societies must eliminate the information of each period of non-fulfillment, within the deadline indicated in the preceding paragraph, counted from the date on which the first non-fulfillment of each period is incorporated into the credit history. (3) In the case of credits in which defaults are registered and subsequently a partial payment of the outstanding balance, the Societies must eliminate the information relating to the credit as well as the corresponding prevention keys, within the deadline indicated in the third paragraph of this article, counted from the date on which the first non-fulfillment is incorporated into the credit history. (3) In the case where the Client enters into a settlement agreement and pays what is established therein, the User must send the Society the respective information, so that it reflects that the payment has been made, with the corresponding observation key. The Societies must eliminate the information relating to these credits, as well as the corresponding observation keys, within the deadline indicated in the third paragraph of this article, counted from the date on which the first non-fulfillment is incorporated into the credit history. (3) For the purposes of this article, period of non-fulfillment will be understood as the time elapsed between the date on which one or more consecutive due obligations cease to be fulfilled and the date on which the respective payment is made. (3) The Societies must eliminate information relating to credits less than the equivalent of one thousand UDIS in the terms established by the Bank of Mexico through general provisions; likewise, in said provisions, a reference amount and deadline may be determined to eliminate the record of residual balances of minimal amounts, which cannot
be greater than forty-eight months. (3) The Societies are exempt from the obligation to eliminate information relating to the non-fulfillment corresponding to the credit history, within the deadline indicated in the second paragraph of this article, when on the date on which it corresponds to eliminate it, the non-fulfillment of the due payment is being subject to litigation in courts. The foregoing, based on the information that the corresponding User provides to the Society in question for this purpose, under oath. (3) In the case referred to in the preceding paragraph, the Society must eliminate from the credit history the information on the non-fulfillment in question, once six months have elapsed counted from when the deadline indicated for this purpose in the aforementioned second paragraph of this article has been fulfilled,

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(3) The Societies will include in their operational manuals procedures that allow them to review the reasonable compliance with what is established in the first paragraph of Article 20 as well as the procedure for deleting the information sent to them by Users in accordance with this article. The Commission will authorize these manuals.
(3) The Societies must establish criteria applicable to all of them for the operational implementation of this article, regarding the information they receive from Users. The Commission will be empowered to resolve queries regarding the operational implementation of this article.
(12) Article 23 Bis.- The Societies, without prejudice to what is provided in Article 23 of this Law, may, under their strictest responsibility, retain information once the deadlines referred to in said article have expired, in order to ensure that the information they receive from their Users after such deadlines is not related to that which should have been deleted. If they receive such information, they must notify the Commission, if the User who delivers it is supervised by said decentralized body. (12) Likewise, the Societies must notify the Commission of the controls they have to safeguard such information. (3) Article 24. The deletion of the credit history provided for in the previous article will not be applicable in the following cases:
(3) I. Regarding one or more credits whose outstanding amount at the time of the failure to pay any amount owed to a creditor is equal to or greater than the equivalent of four hundred thousand UDIS, in accordance with the value of said unit applicable on the date or dates when the respective payment defaults occur, regardless of the currency in which they are denominated. (3) II. In cases where there is a final judgment convicting an individual Client for the commission of an intentional property-related crime associated with a credit and such circumstance has been made known to the Society by one of its Users.
CHAPTER III
ON THE PROVISION OF CREDIT INFORMATION SERVICES (3) Article 25.- Only Financial Entities, Commercial Enterprises, and Sofomes E.N.R. may be Users of the information provided by the Societies.
Article 26.- The Societies must provide information to Users, to judicial authorities by virtue of a ruling issued in a trial in which the Client is a party or accused, as well as to federal tax authorities, through the Commission, for tax purposes, for combating money laundering or for actions aimed at preventing and punishing the financing of terrorism.
The Societies may deny the provision of their services to those persons who do not provide them with information for the realization of their object. For these purposes, it will be considered that a person does not provide information when they habitually and professionally carry out credit operations or other operations of an analogous nature and do not provide information about them. (7) Regarding natural persons, in no case may the information contained in credit reports be used by Users for the Client's employment purposes, except by judicial or legal mandate that justifies it.
Article 27.- The Societies, when providing information on credit operations and other operations of an analogous nature, must keep secret the identity of the creditors, except in the case referred to in Article 39 of this law, in which case, they will inform the Clients directly of the names of the corresponding creditors.

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(4) Article 27 Bis.- When Users sell or assign credit portfolios to companies specialized in the acquisition of debt or to other buyers or assignees, and in terms of common law notify the Client of such sale or assignment, they must inform the Societies with which they have a service contract for credit information services within twenty business days following the aforementioned notification, mentioning the name, address, Federal Taxpayer Registry, and any other data that allows full identification of the buyer or assignee, as well as the date on which the assignment or sale was celebrated. (4) In the case referred to in the previous paragraph, the Societies must include in the Special Credit Reports they issue an annotation indicating the name of the person to whom some of the credits whose information they incorporate have been sold or assigned. Such annotation will not substitute the notification of the assignment or sale to the Client by the User, in accordance with common law. In the Special Credit Reports, the Societies must incorporate a legend mentioning that information on the address of the acquirers or assignees of the portfolio can be obtained through the toll-free telephone number referred to in Article 40, penultimate paragraph of this Law and on their electronic page on the worldwide network known as the Internet. (4) The update of the information sent to the Societies regarding the sold or assigned credits must be carried out using the same number assigned to the credit object of the sale or assignment. (4) When the credit portfolio has been sold or assigned to another User, the buyer or assignee will have the obligation to update the records related to the sold or assigned credit with the Society. (4) In the event that a User sells or assigns some credit to persons who are not Users, the seller or assignor must continue to send the information related to such credit. The seller or assignor must agree with the buyer or assignee that, with the necessary opportunity, they inform them of the credit movements so that the User in question complies with the obligation provided for in the penultimate paragraph of Article 20 of this law. (4) When the sale or assignment has been made to persons who are not Users or these have ceased to exist legally and the seller or assignor has ceased to be a User, the Societies must include in the Credit Reports and Special Credit Reports they issue an annotation stating the impossibility of updating the respective records for the mentioned reason. In this case, the information of the respective credit must be deleted from the Client's credit history within a maximum period of forty-eight months. (4) The obligation to attend to the claims that Clients present to the Societies, in terms of what is provided in Article 42, will be the responsibility of the person to whom it corresponds to update the information of the sold or assigned credit. (13) Article 28.- The Societies may only provide information to
a User when this User has the express authorization of the Client, through their signature, where it is clearly stated that they have full knowledge of the nature and scope of the information that the Society will provide to the User who requests it, of the use that said User will make of such information and of the fact that this User may make periodic inquiries of their credit history, during the time they maintain a legal relationship with the Client. The signature referred to in this paragraph may be obtained manually or by electronic means, in the latter case, always that it complies with the terms and conditions established by the Bank of Mexico. (2) The Societies may provide information to Users who acquire or manage credit portfolios, using for this purpose the authorization that the Client has given in accordance with this article to the User who originally granted the respective credit. (5) Third paragraph.- Repealed. Likewise, the Bank of Mexico may authorize the Societies the terms and conditions under which they may agree with Users the substitution of the Client's manual signature with any of the forms of manifestation of will indicated in Article 1803 of the Federal Civil Code. The express authorization referred to in this article will be necessary regarding:

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I. Natural persons, and
II. Legal entities with total credits less than four hundred thousand UDIS, in accordance with the value of said unit published by the Bank of Mexico on the date the information request is presented. Users who make inquiries related to legal entities with total credits greater than four hundred thousand UDIS will not require the express authorization referred to in this article.
(11) The obligation to obtain the authorizations referred to in this article will not apply to the information requested by the Bank of Mexico, the Commission, judicial authorities by virtue of a ruling issued in a trial in which the Client is a party or accused and by federal tax authorities, when they request it through the Commission, for tax purposes, for combating money laundering or for actions aimed at preventing and punishing the financing of terrorism. The validity of the authorization provided for in the first paragraph of this article will be one year counted from its granting, or up to two additional years to that year if the Client so authorizes expressly. In any case, the validity will remain as long as there is a legal relationship between the User and the Client. The Special Credit Reports that are delivered to Clients in terms of this law must contain the identity of the Users who have consulted their information in the previous twenty-four months. When the text containing the Client's authorization is part of the documentation that the same must sign to manage a service with any User, said text must be included in a special section within the cited documentation and the Client's manual signature relative to the text of their authorization must be an additional signature to the one normally required by the User for the processing of the requested service. (3) It will be understood that the Society, as well as its employees or officials who participate in any inquiry knowing that the authorization referred to in this article has not been obtained, violate the provisions relating to Financial Secrecy, in terms of Articles 29 and 30 following. (4) It will be considered that the Users, as well as their employees or officials involved, have violated the provisions relating to Financial Secrecy when they make inquiries or disclose information in contravention of what is established in the articles mentioned in the previous paragraph. (4) The Societies, their employees and officials are prohibited from providing information related to Client personal data for the commercialization of products or services that Users or any third party intend to offer, except for the realization of inquiries related to the credit history. Whoever provides information in contravention of what is established in this paragraph, will incur the crime of revelation of secrets referred to in Article 210 of the Federal Penal Code.
Article 29.- Users who are Commercial Enterprises may make inquiries to the Societies through officials or employees previously authorized who declare, under oath, that they have the authorization referred to in the first paragraph of Article 28 of this law.
Such Users must send the originals of such authorizations to the Society in question within a period that cannot exceed thirty days after the date on which the inquiry was made.
(3) The Commercial Enterprise that has made an inquiry without having the authorization referred to in the previous paragraph will incur a violation of Financial Secrecy. In this case, the Society in question must notify Profeco of such fact within thirty business days following the month in which it should have received the corresponding authorizations.
(3) Once Profeco receives the aforementioned notification, it may file a complaint against whoever is responsible for the violation of Financial Secrecy.
Users who are Commercial Enterprises must keep absolute confidentiality regarding the content of the Credit Reports provided to them by the Societies.

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(3) The Societies must verify that the Users who are Commercial Enterprises have the authorizations referred to in the first paragraph of Article 28. The Societies will be legitimized to take legal action against Commercial Enterprises and/or officials or employees thereof, for violation of Financial Secrecy, when such verifications result in the absence of the aforementioned authorizations. (4) The Societies must keep the authorizations in their files in printed, electronic, or optical media form, for a period of at least sixty months counted from the date on which the corresponding inquiry was made. (3) Article 30.- Users who are Financial Entities or Sofomes E.N.R. may make inquiries to the Societies through officials or employees previously authorized before the Societies who declare under oath that they have the authorization referred to in the first paragraph of Article 28 of this law. (3) Such Users must keep the Client's authorization in their files, in the form and terms indicated by the Commission or Condusef, as appropriate, for a period of at least twelve months counted from the date on which an inquiry was made in a Society on the credit behavior of a Client. Likewise, such Users will be responsible for the violation of the provisions relating to Financial Secrecy in terms of Article 38 of this law, when they do not timely have the aforementioned authorization. (3) The Commission or Condusef may request Financial Entities or Sofomes E.N.R., respectively, to exhibit the Client authorizations regarding which they have requested information from the Societies and, if they do not have it, impose the corresponding sanctions on the Financial Entity or Sofom E.N.R. in question, without prejudice to the Societies also being able to verify the existence of such authorizations and communicate to the Commission or Condusef the non-compliances they detect. (3) Regarding Users who are Financial Entities or Sofomes E.N.R., the Societies will only be responsible for violating Financial Secrecy when they do not obtain the declaration under oath referred to in the first paragraph of this article.
Article 31.- The Commission may authorize that the sends to the Societies of the authorizations referred to in Article 28 of this law, be carried out through electronic or digitized means, in which case the Users must keep the Client's authorization in their files for the period that the credit granted in their case remains valid or for a period of at least twelve months counted from the date on which an inquiry was made on the credit behavior of a Client to a Society. The Societies will be obliged to verify, at the request of the Commission, the existence of such authorization.
Article 32.- The Societies may agree on the provision of their services, through the use of equipment, electronic, optical or any other technology means, automated data processing systems and telecommunications networks, whether private or public, establishing in the respective contracts the bases to determine the following:
I. The services whose provision is agreed;
II. The means of identification of Users and Clients, and
III. The means by which the creation, transmission, modification or extinction of rights and obligations inherent to the services in question are made manifest.
The use of the identification means established in accordance with what is provided for in this article, in substitution of the manual signature, will produce the same effects that the laws grant to the corresponding documents and, if applicable, will have the same probative value.
Article 33.- The Society must have systems and processes to verify the identity of the User or the Client through the authentication process that it determines, which must be approved

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Article 34.- Credit Reports and Special Credit Reports will not have probative value in court, and must contain a legend to that effect.
Article 35.- The Societies may not establish policies or operational criteria that restrict, hinder or impose excessive requirements to provide or receive information, except what is provided in the second paragraph of Article 26 of this law.
The Societies may not prevent their Users from providing or requesting information to other Societies. The Societies may not also establish quantitative limits on the number of inquiries that Users can make.
(8) Article 36.- The Societies that for the first time provide their Primary Data Base to other Societies must transmit it in its entirety, at the latest within the month following that in which they request it.
(8) In order to keep the information updated, in addition to what is stated in the previous paragraph, the Societies must provide the information captured each month in their Primary Data Base to all those Societies that have so requested. The aforementioned information must be provided within fifteen natural days following the month in which they have carried out the aforementioned capture of information. (8) The Societies must agree within a period not greater than thirty days counted from the request made by the Commission, the standards, conditions, procedures, as well as the amounts to be paid between themselves for the exchange of information referred to in this article. The respective agreements must be presented to the Commission for their authorization, as well as their modifications. (8) In the event that the Societies do not reach the agreement provided for in the previous paragraph, they must be subject to the general provisions issued by the Commission, for which, it will have a period of thirty days. The Societies must be subject to such provisions within a period not greater than fifteen days, in which it may determine the tariffs, among other cases. (8) Each Society, when providing information to other Societies, must avoid distortions in the transmitted information with respect to that originally received from Users. Likewise, the Societies must delete from their database the information of those records that they receive in a repeated manner for any cause, in order not to duplicate information within the Credit Reports nor the Special Credit Reports they issue. (8) Article 36 Bis. The Societies when issuing Credit Reports and Special Credit Reports, in addition to the information contained in their databases, must include, the contained in the databases of the other Societies. In any case, the credit reports referred to in this article must include, regarding each operation, at least the following information:
(8) I. The credit history;
(8) II. The opening dates;
(8) III. The dates of the last payment and closure, if applicable; (8) IV. The credit limit; (8) V. If applicable, the total balance of the contracted operation and amount to pay, and (8) VI. The applicable observation and prevention keys.
(8) The Commission may, through general provisions, exempt or add requirements, as well as specify the content of the concepts cited in the preceding sections.

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(8) Users may choose to consult reports from different Societies separately.
In the event that users opt for this method of consultation, they must notify the Society, which must provide them with a Credit Report containing only information from that Society. If this modality is requested, Users are obligated to request their corresponding individual report from the other Societies.
(8) For the purposes of the provisions of this article, Societies are obligated to share information among themselves.
(8) Societies must disclose the existence of the credit reports referred to in this article.
(8) Societies that provide information to another Society under the terms of this article will not be responsible for fulfilling the obligations set forth in articles 29 and 30 of this law.
(8) Societies to which another Society requests information in accordance with the preceding paragraphs are obligated to provide it no later than the day following the date on which it was requested.
(8) The fees that Societies must offer to their Users for the Credit Reports referred to in this article will be authorized by the Commission. To the authorized fee, Societies, jointly, may apply discounts based on: a) the number of queries made by the User in question regarding this type of Credit Report, and b) any other factor that influences the determination of the price. (8) The income that Societies obtain from the sale of these credit reports will be distributed among them in the manner that they agree, subject to prior authorization of such fee by the Commission. (8) In the event that Societies have not determined the applicable fee for the credit reports referred to in this article, the Commission may require them to determine their price within a period not exceeding fifteen days. If they fail to do so, the Commission itself will set such fee, giving publicity to the corresponding resolution. (8) It shall be the responsibility of the General Manager of the Society to ensure the implementation of procedures and internal control measures that guarantee that the sending of information to other Societies is carried out in a timely, complete, and undistorted manner with respect to the information originally received from Users.
Article 37.- Societies must submit to the Commission manuals establishing minimum security measures, which will include the transportation of information, as well as physical, logistical, and communication security. These manuals must contain, where applicable, the necessary measures for the security of external data processing.
Users may verify, with the consent of the Societies, that the necessary security measures exist to safeguard the information that Users provide to them.
CHAPTER IV
ON THE PROTECTION OF THE CLIENT'S INTERESTS
Article 38.- Except for the information that Societies provide in accordance with this law and the general provisions derived from it, the legal provisions relating to Financial Secrecy shall apply to Societies, their officials, and their employees, even if the aforementioned officials or employees cease to provide services to such Societies.
(1) Users of the services provided by Societies and any other person other than the Client who has access to their Credit Reports or Special Credit Reports, as well as the officials, employees, and service providers of such Users and persons, must keep confidential the information contained in the aforementioned reports and not use it in a manner different from that authorized.

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Article 39.- Clients who manage any service with a User may request from said User the data obtained from the Society, in order to clarify any situation regarding the information contained in the Credit Report.
(4) Users who deny the granting of any credit or service predominantly due to the information contained in the corresponding Credit Report are obligated to communicate this situation to Clients, as well as to provide them with the data of the Society that issued the aforementioned Credit Report.
(3) Article 40.- Clients have the right to request the Society for their Special Credit Report, through the Society's specialized units, Financial Entities, or Sofomes E.N.R., or, in the case of Commercial Enterprises, through those they designate as responsible for these purposes. These specialized units and the aforementioned responsible persons are obligated to process the requests submitted by Clients, as well as to inform them of the telephone number referred to in the penultimate paragraph of this article. The Society must formulate the requested Special Credit Report in a clear, complete, and accessible manner, such that it explains itself or with the help of an attached instruction manual, and send it or make it available to the Client within a period of five business days counted from the date on which the Society received the corresponding request. The Special Credit Report must allow the Client to clearly and precisely know the status of their credit history. For the purposes of delivering the Special Credit Report, Societies must, at the Client's choice:
I. Make it available to them in the specialized unit of the Society; II. Send it to the email address indicated in the corresponding request; III. Send it in a closed envelope with proof of receipt to the address indicated in the corresponding request.
(3) Societies are obligated to: a) Send or make available to Clients, along with each Special Credit Report, a summary of their rights and the procedures to access and, where applicable, rectify errors in the information contained in said document; b) Keep the content of the aforementioned summary available to the general public, and c) Make available to the general public in an easy and accessible manner the meaning of the codes used in Special Credit Reports and keep this information updated at all times. (12) Societies must have a toll-free telephone number and an Internet page with permanent consultation availability to attend to requests for Special Credit Reports, as well as to receive complaints regarding these reports presented by Clients in accordance with article 42. Furthermore, through said telephone number, Societies must attend to Clients' doubts regarding such requests and the rights conferred by this Law and the general provisions referred to in article 12. (4) Condusef, on its page on the worldwide web known as Internet, must include information about Societies with their name, data identifying them, and their link via the aforementioned network. On its part, Societies are obligated to have in a visible place within their respective page on said network, the link to Condusef's page. (12) Users must inform Clients via email or telephone, if they have them, about any information they report to a Society that has the characteristics to be integrated into the Primary Data Base. (12) Users are obligated to register a Client's email address if the Client provides it.
Article 41.- Clients have the right to request Societies to send their Special Credit Report free of charge every twelve months. This is always provided that they request that the respective sending be carried out via email or that they go to pick it up at the specialized unit of the Society.

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(3) In the event that Clients who are natural persons request that their Special Credit Report be sent by the means indicated in numeral III of the fourth paragraph of article 40 of this Law, or in the case of an additional request for the Special Credit Report, the Society must comply with the general provisions referred to in article 12 of this Law.
(3) Article 42.- When Clients are not satisfied with the information contained in their Credit Report or Special Credit Report, they may file a complaint. Societies are not obligated to process complaints regarding information contained in records that have been the subject of a previous complaint, regarding which the procedure provided for in this article, as well as in articles 43 and 45, has been followed. (3) Such complaint must be filed before the specialized unit of the Society in writing, by mail, Internet, telephone, or email, clearly indicating the records contained in the Credit Report or Special Credit Report in which the challenged information appears and, where applicable, attaching copies of the documentation supporting their disagreement. If they do not have the corresponding documentation, Clients must explain this situation in the writing or electronic medium used to file their complaint. Complaints made by telephone must be recorded by the Society. (3) The terms in which the Society must attend to the complaint mentioned in the preceding paragraph will be determined by the Bank of Mexico, through the general provisions referred to in article 12 of this law. (3) Regardless of the means used to formulate complaints, the Society must inform the Client of the control number assigned to the complaint so that the latter is able to follow up on it. (3) The Credit Report and Special Credit Report must clearly indicate that Clients have the right to file complaints with Societies in accordance with this article, as well as to request clarifications directly with Users in accordance with the law regulating them. (9) When a Society receives a complaint from a Client regarding a record originating from information provided by another Society through a Special Credit Report, the Society that received such complaint must, within a maximum period of five business days, counted from the receipt of the respective complaint, send it to the Society that reported the challenged record, so that, from the time it receives it, it becomes responsible for processing it in accordance with articles 42 to 49 of this law. Once the complaint referred to in this paragraph is sent within the specified period, the Society that received it from the Client is released from any responsibility regarding the processing thereof. (9) For the purposes of the provisions of the first paragraph of article 47 of this law, the Society obligated to make the aforementioned shipments will be that which sent the challenged record to another Society for the latter to prepare the respective Special Credit Report. (3) Article 43.- The Society must deliver to Financial Entities or Sofomes E.N.R. through their specialized units or, in the case of Commercial Enterprises, through those they designate as responsible for these purposes, the complaint filed by the Client, within a period of five business days counted from the date on which the Society received it. The Users in question
must respond in writing to the complaint filed by the Client, within the period provided for in article 44 of this law. Once the Society notifies the respective User in writing of the complaint, it must include in the record in question the legend "challenged record," which will be removed only after the procedure contained in articles 44, 45, and 46 of this Chapter concludes. (11) Article 44.- If Financial Entities or Sofomes E.N.R. through their specialized units or, in the case of Commercial Enterprises, through those they designate as responsible for these purposes, do not send their response to the complaint filed by the Client within a period of fifteen calendar days counted from the time they received the notification of the

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Article 45.- If the User accepts wholly or partially what is stated in the complaint filed by the Client, they must immediately make the corresponding modifications in their database and notify the Society that sent them the complaint, sending them the correction made to their database.
(3) In the event that the User partially accepts what is stated in the complaint or declares it inadmissible, they must express in their response the elements they considered regarding the complaint and attach a copy of the evidence supporting their response. The Society must send said response and copy of the aforementioned evidence to the Client within five business days following receipt of the User's response. The Client may state in a text of no more than two hundred words the arguments by which they believe the information provided by the User is incorrect and request that the Society include said text in their future Credit Reports. In the event that the errors subject to the complaint filed by the Client are attributable to the Society, it must correct them immediately. (3) Article 46.- Users must not send again to Societies information previously contained in the Society's database that has been modified or deleted in accordance with the provisions of articles 44 and 45 of this Law. Societies will have no responsibility regarding modifications, additions, or deletions of information or records made as part of the complaint procedure provided for in this Chapter. In the resolution of said procedure, Societies are limited to delivering to Users and Clients the documentation corresponding to each of them in accordance with the previous articles, and they are not responsible for resolving, settling, or acting as amicable mediators of the differences arising between them. (3) Article 47.- In cases where, as a result of a complaint, a modification is made to the Client's information contained in the Society's database, it must send the Client a new Special Credit Report through the means agreed upon with him, within five business days following the date on which the complaint was resolved. Additionally, within a period that may not exceed five business days from the date of resolution of said complaint, the Society must send an updated Credit Report to Users who had received information about the Client in the last six months and to other Societies. The cost of the aforementioned Reports and their sending will be covered by the User or the Society, depending on who is attributable the error in the information contained in the aforementioned database. (3) Complaints filed by a Client on the same date will be considered for the purposes stated in this article as a single complaint. (3) Article 48.- Societies may establish in the service contracts they conclude with Users that both commit to resolving conflicts they have with Clients regarding disagreement over the information contained in the records appearing in the database, through the arbitral process before Condusef or before Profeco, as the case may be, provided that the Client requests to subscribe to the model of commitment to arbitration in amicable composition attached to said contracts, which must provide maximum deadlines. (3) Financial Entities or Sofomes E.N.R. through their
specialized units or, in the case of Commercial Enterprises, through those they designate as responsible for these purposes, have five business days, counted from the date of the respective award, to inform Societies of said award. Societies have five business days, counted from the date on which they received the information from the User, to update the corresponding records. (3) Clients may file complaints with Profeco against Users Commercial Enterprises, which will be processed in accordance with the procedures provided for in the Federal Consumer Protection Law. Furthermore, they may file complaints with Condusef against Users Financial Entities or Sofomes E.N.R., which will be processed in accordance with the procedures provided for in the Law for the Protection and Defense of Users of Financial Services.
Article 49.- Once the Society has updated the information contained in its database, it must make available to the Commission a list of records that for any reason had been deleted, included, or modified as a result of the complaint filed by the Client.
(3) Article 50.- The Society, quarterly, must make available to Condusef or Profeco, as applicable, the number of complaints regarding the information contained in its database, relating such information with the Users or Society in question, and the models of arbitral agreements that, where applicable, they commit to adopt with Users, in accordance with article 47 of this Law. The foregoing must be made known to the public by the corresponding authority.
CHAPTER V
ON SANCTIONS
Section I
General Provisions
Article 51.- Societies will be liable for damages caused to Clients when providing information when there is gross negligence, fraud, or bad faith in the handling of the database.
Users who provide information to Societies will likewise be liable for damages caused when providing such information, when there is gross negligence, fraud, or bad faith.
(1) Article 52.- Those Users who obtain information from a Society without the authorization referred to in article 28 of this Law or who in any other way commit any violation of Financial Secrecy, as well as persons who, violating the duty of confidentiality referred to in article 38 of this Law, use the respective information in a manner different from that authorized by the Client, are obligated to repair the damages caused. This without prejudice to the other sanctions, including criminal ones, that apply for the revelation of the secrecy established. (3) Regarding Commercial Enterprises and Sofomes E.N.R., that do not obtain the authorization referred to in articles 28, 29, and 30 of this Law, Profeco or Condusef, as applicable, prior hearing rights and considering for such purpose the gravity and recurrence of the case, may order all Societies to abstain from providing services to the infringer temporarily. (3) Article 53.- For the imposition of sanctions, the Commission, the Bank of Mexico, Profeco, and Condusef, will adhere to the following:
(14)
I. The alleged infractor will be granted the right to a hearing, who, within a period of ten business days, counted from the business day following that on which the corresponding notification takes effect, must manifest in writing what is in their interest and provide the evidence they deem appropriate. The Commission, the Bank of Mexico, Profeco, and Condusef, as applicable, at the request of the party, may extend by a single occasion the period referred to in this fraction, for up to the same period, attending to the particular circumstances of the case. Notifications will take effect on the business day following that on which they are practiced.
(1) II. In the event that the alleged infractor does not use the right to a hearing within the granted period, or that, having exercised it, fails to dispel the imputations made against them, the corresponding sanction will be imposed.
(1) III. In the imposition of sanctions, the gravity of the infringement, the personal antecedents, and the economic condition of the infractor will be taken into account.

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(15) Once the period referred to in fraction I of this article and, where applicable, its extension has concluded, the Commission, the Bank of Mexico, the Profeco, and the CONDUSEF, as applicable, will have a period of up to sixty business days to conduct the evidentiary proceedings.

(15) Once the period for conducting evidentiary proceedings has elapsed, the corresponding authority among those mentioned in the preceding paragraph will notify the opening of a five-business-day period to submit arguments. The corresponding authority may carry out such notification by posting or by any other means it determines. On the business day following the expiration of the period to submit arguments, the instruction will be considered closed, and the authority will have a period not exceeding one hundred eighty business days to issue and notify the resolution that ends the sanctioning procedure.

(1) By personal antecedents, it shall be understood:

(11) a) The status of the primary offender. Likewise, it shall be considered as a mitigating factor when the alleged offender proves to the relevant authority that it has compensated for the damage caused, as well as the fact that it provides information that contributes to the exercise of the authorities' powers, in order to assign responsibilities. The corresponding authority may also consider as a mitigating factor or an exclusion from the imposition of sanctions the existence of fortuitous events or force majeure.

(1) b) Recidivism, as well as the commission of an infraction in a continuous manner for more than six months. An offender shall be considered a recidivist if, having committed an infraction and having been sanctioned, they commit another of the same type or nature within the year immediately following the date on which the corresponding resolution became final. Any of these circumstances shall be taken as an aggravating factor, and the sanction may be up to double the amount provided for.

(1) To determine the economic condition, the following shall be attended to:

(3) a) In the case of Societies or Users, the book capital they have at the time the sanction is imposed, and

(3) b) In the case of officials or employees of the Societies or the Users, the earnings received for any concept for the provision of their services to them in the year prior to the moment the infraction was committed.

(3) For the purposes of what is provided for in the aforementioned items a) and b), the corresponding Societies or Users shall be obligated to provide this information to the Commission, the Bank of Mexico, the Profeco, or the CONDUSEF, as applicable, when they so request.

(3) To calculate the amount of the fines referred to in this Law, the general minimum wage corresponding to the Federal District, in effect on the day the infraction was committed or, where applicable, when it ceased, shall be taken as the basis.

(14) Article 54.- The power of the Bank of Mexico, the Profeco, the CONDUSEF, and the Commission to impose the administrative sanctions provided for in this Law shall expire in a period of five years, counted from the commission of the infraction. The reference period shall be interrupted upon the initiation of the administrative procedure related thereto. In the case of continuous conduct, the referred period shall be computed from when the infringing conduct ceased. Regarding continued conduct, the referred period shall run from when the last conduct was consummated.

(15) Likewise, the five-year period provided for by this article shall be suspended:

I. For up to two years, when the Financial Entity: is not located at the address registered with the respective Authority without having presented the corresponding notice of change, or has indicated an incorrect address.

The aforementioned period shall resume from the date on which the Authority becomes aware of the current address.

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For internal use

II. When the Financial Entity has contested any of the acts related to the sanction imposition process. Such suspension shall be computed from the date of filing the defense mechanism until the date on which the corresponding final resolution is issued.

(3) It shall be understood that the administrative procedure in question has begun when the Bank of Mexico, the Commission, the Profeco, or the CONDUSEF, as applicable, notify the alleged offender of the irregularities alleged against them.

(1) Article 55.- The administrative sanctions referred to in this Law shall not affect the criminal procedure that, where applicable, corresponds.

(3) Article 56.- The fines imposed by the Bank of Mexico, the Commission, the Profeco, or the CONDUSEF shall be paid within fifteen business days following the one on which the notification of the respective letter takes effect. When the fines are not paid on the established date, their amount shall be updated from the month in which the payment should have been made until it is made, in accordance with the provisions established in the Federal Tax Code for these cases.

(3) In the event that the fine in question is paid within the aforementioned fifteen-business-day period, it shall be reduced by 20% of its amount, without the need for the authority that imposed it to issue a new resolution, provided that no defense mechanism is filed.

(11) To safeguard the exercise of the right of access to government public information, the Bank of Mexico, the Commission, the Profeco, or the CONDUSEF, adhering to the guidelines approved by their Board of Directors or equivalent body, shall make known to the general public, through their Internet portal, the sanctions imposed for infractions of this Law, or of the provisions emanating from it, for which they must indicate:

(11) I. The name, trade name, or corporate name of the offender;

(11) II. The legal provision infringed, the type of sanction imposed, amount or period, as applicable, the infringing conduct, and

(11) III. The status of the resolution, indicating whether it is final or if it is subject to challenge, and in the latter case, if any defense mechanism has been filed and its type, when such circumstance is known to have been duly notified by the competent authority.

(12) In all cases, if the imposed sanction is rendered void by any competent authority, such circumstance must also be published.

(12) The aforementioned information shall not be considered reserved or confidential.

(3) For the execution of the fines imposed by the Bank of Mexico under this Law, the provisions of articles 66 and 67 of the Bank of Mexico Law shall be observed.

(1) The fines imposed by the Commission on credit institutions shall be made effective by charging their amount to the account that the Bank of Mexico holds for said institutions. It shall be the responsibility of the Secretariat to make effective the fines against persons other than credit institutions.

(1) The Bank of Mexico will make the respective charges on the date that the Commission requests it, since they are fines against which no defense mechanism is already available. For such purposes, the affected credit institution will notify the Commission in writing simultaneously with the exercise of any defense mechanism before the competent authority.

(11) Article 56 Bis.- The Commission or the CONDUSEF, as the case may be, may, in addition to imposing the corresponding sanction, reprimand the offender, or merely reprimand them, considering their personal antecedents, the gravity of the conduct, that there are no elements to demonstrate that third-party or financial system interests are affected, that if damage was caused it has been repaired, as well as the existence of mitigating factors under this Law.

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For internal use

(11) In all cases, the Commission or the CONDUSEF may refrain from sanctioning the Societies and Financial Entities, provided that the cause of such abstention is justified in accordance with the guidelines issued for such purpose by the Board of Directors of the respective Commission and refer to facts, acts, or omissions that do not involve gravity, there is no recidivism, there are no elements to demonstrate that third-party or financial system interests are affected, and they do not constitute a crime.

(4) In the imposition of the sanction referred to in Article 61, fraction XI, the Commission may consider as a mitigating factor of responsibility, or may refrain from sanctioning, the failure to comply with the obligation to continue sending information regarding credits that have been assigned or sold, as provided for in the fifth and last paragraphs of Article 27 Bis, provided that the User demonstrates, to the satisfaction of the Commission, that the non-compliance is a direct consequence of the fact that, despite having timely taken the necessary actions to obtain the corresponding information, the assignee or buyer of the portfolio has not provided it.

(12) Serious infractions shall be considered the violation of what is provided for in Articles 60, fractions VIII and XXII, 61, fractions IV, VIII, IX, X, and XVII, and 62, fractions I, II, and III of this Law. In all cases, it shall be considered serious when false information is provided to the Commission or information that fraudulently induces error, by concealment or omission.

(12) Article 56 Bis 1.- The Societies, Financial Entities, and Sofomes E.N.R., through their General Director and, with the opinion of the person or area in charge of supervision functions, may submit to the authorization of the Commission, the Bank of Mexico, or the CONDUSEF, as applicable, a self-correction program when the Society, Financial Entity, or Sofom E.N.R. in question, in the performance of its activities, or the person or area exercising supervision functions as a result of the functions conferred upon it, detects irregularities or non-compliance with what is provided for in this Law and other applicable provisions.

(12) The following may not be the subject of a self-correction program under the terms of this article:

(12) I. The irregularities or non-compliances that are detected by the Commission, the Bank of Mexico, or the CONDUSEF in the exercise of their powers, before the presentation by the interested party of the respective self-correction program.

(12) It shall be understood that the irregularity was previously detected by the aforementioned authorities when the Society, Financial Entity, or Sofom E.N.R., as the case may be, has been notified of the irregularity, or when it has been detected during the course of the inspection visit, or corrected subsequently after a request has been made during the visit;

(12) II. When the contravention to the norm in question corresponds to the commission of a crime, or

(12) III. When it concerns any of the infractions considered serious under this Law.

(12) Article 56 Bis 2.- The self-correction programs referred to in Article 56 Bis 1 of this Law shall be subject to the general provisions issued by each of the authorities referred to in such article, according to their competence. Additionally, they must be signed by the person or area exercising the supervision functions of the Society, Financial Entity, or Sofom E.N.R. in question, and be presented to the board of directors in the session immediately following the authorization request presented to the Commission. It must also contain the irregularities or non-compliances committed, indicating the provisions considered to have been contravened; the circumstances that originated the irregularity or non-compliance committed, as well as indicate the actions adopted or intended to be adopted by the Society, Financial Entity, or Sofom E.N.R. to correct the irregularity or non-compliance that motivated the program.

(12) In the event that the Society, Financial Entity, or Sofom E.N.R. requires a period to remedy the irregularity or non-compliance committed, the self-correction program must include a detailed schedule of activities to be carried out for that purpose.

(12) If the Commission, the Bank of Mexico, or the CONDUSEF, as the case may be, does not order the Society, Financial Entity, or Sofom E.N.R. in question to modify or correct the self-correction program within twenty business days following its presentation, the program shall be considered authorized in all its terms.

(12) When the Commission, the Bank of Mexico, or the CONDUSEF orders the Society, Financial Entity, or Sofom E.N.R. to make modifications or corrections with the purpose that the program adheres to what is established in this article and other applicable provisions, they shall have a period of five business days counted from the respective notification to remedy such deficiencies. This period may be extended only once for up to five additional business days, with the prior authorization of the Commission, the Bank of Mexico, or the CONDUSEF, as applicable.

(12) If the deficiencies referred to in the preceding paragraph are not remedied, the self-correction program shall be considered not presented, and consequently, the irregularities or non-compliances committed cannot be the subject of another self-correction program.

(12) Article 56 Bis 3.- During the validity of the self-correction programs authorized by the authorities under Articles 56 Bis 1 and 56 Bis 2 above, they shall refrain from imposing on the Societies, Financial Entities, or Sofomes E.N.R., as applicable, the sanctions provided for in this Law, for the irregularities or non-compliances whose correction is contemplated in such programs.

Likewise, during such period, the limitation period for imposing sanctions shall be interrupted, resuming until it is determined that the irregularities or non-compliances subject to the self-correction program were not remedied.

(12) The person or area in charge of exercising supervision functions shall be obligated to follow up on the implementation of the authorized self-correction program and report on its progress to the board of directors and the General Director as well as to the authorities, as determined by each of them in the form and terms established in the general provisions referred to in Article 56 Bis 2 of this Law. This is without prejudice to the power of the Commission, the Bank of Mexico, and the CONDUSEF to supervise at any time and, within the scope of their competence, the degree of progress and compliance with the self-correction program.

(12) If the Commission, the Bank of Mexico, and the CONDUSEF, in the exercise of their supervision functions or inspection and surveillance activities, as applicable, determine that the irregularities or non-compliances subject to the self-correction program were not remedied within the established period, they shall impose the corresponding sanction, increasing the amount thereof by up to forty percent; said amount being adjustable in accordance with the applicable tax provisions.

(2) Article 57.- Against the resolutions of the Commission imposing sanctions and the fines provided for in Articles 66 and 67 of this Law, the review appeal shall be available under the terms provided for in the Federal Administrative Procedure Law.

(4) Against the sanctions imposed by the Profeco and the CONDUSEF, the administrative appeal contemplated in the Federal Consumer Protection Law and the review appeal provided for in the Law for the Protection and Defense of Financial Services Users shall be available, respectively.

Section II
Sanctions that the Commission may impose

(2) Article 58.- The Commission may disqualify from holding a job, position, or commission within the Mexican financial system, for a period of six months to ten years, those officials or employees of the Societies or of the Financial Entities who, in any way, commit any violation of the provisions relating to Financial Secrecy. Such persons shall also be obligated to repair the damages that may have been caused. This is without prejudice to the sanctions to which the Users may be entitled under this Law or other legal frameworks.

(2) Article 59.- The Society that does not have the minimum paid-in capital in terms of Article 8 of this Law shall be sanctioned by the Commission with a fine equivalent to the amount obtained by multiplying by 1.5, the yield that the shortfall of that capital would have generated had it been invested during the period in which it was presented, at the leading rate paid by the Certificates of the Treasury of the Federation.

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For internal use

(11) Article 60.- The Commission shall sanction with a fine of 300 to 5,000 times the general daily minimum wage in effect in the Federal District, when:

(11) I. The Society omits to integrate the files or does not inform the Commission of the appointments, in the terms established in the fourth and fifth paragraphs of Article 9 of this Law, as well as that it fails to comply with the provisions referred to in said fourth paragraph.

(3) II. The Society does not present the public instrument by which the corporate bylaws are modified before the Public Registry of Commerce or does not inform the Secretariat or the Commission of the registration data in accordance with what is provided in Article 11;

(2) III. The Society does not notify the Commission of the establishment, change of location, or closure of any of its offices, in the terms established in Article 14;

(11) IV. The Society omits to present to the Secretariat or to the Commission the information or documentation they request or determine, in terms of Article 17, second paragraph, or fails to comply with the provisions emanating from it.

(3) V. The Society, in terms of Article 21, does not have the prevention or observation keys; or the operational manuals; or if said keys or manuals or their modifications have not been approved by its board of directors or if said keys or their modifications have not been sent to the Commission for approval;

(3) VI. The Financial Entity refrains from using the prevention, observation keys, or the operational manuals provided for in Article 21;

(7) VII. When the Society incorporates into the Primary Data Base the information of delinquent portfolio provided by users without adjusting to the terms of fraction I of Article 2 of this Law;

(3) VIII. The Society, its employees, or officials provide to the Users information that includes the identity of the creditors, in contravention of what is provided for in Article 27;

(3) IX. The Financial Entity does not conserve the Client's authorization, in the form and terms provided for in Article 30;

(2) X. The Society does not have the systems and processes provided for in Article 33, or they have not been approved by its board of directors;

(3) XI. The Financial Entity omits to provide the Client with the data obtained from the Society or the information referred to in Article 39;

(2) XII. The Society omits to provide the Client with the Special Credit Report, in the form and terms established in Article 40;

(3) XIII. The Society refrains from making available to the general public the meaning of the keys used in the Special Credit Reports or does not update such information, in accordance with Article 40, fifth paragraph, item c);

(2) XIV. The Society does not deliver the Client's complaint in the form and terms established in the first paragraph of Article 43, or omits to include in the corresponding register the legend provided for in the second paragraph of the same article;

(2) XV. The Financial Entity omits to immediately make modifications in its database, relative to the total or partial acceptance of what is stated in the complaint presented by the Client or does not notify the Society that sent the complaint and fails to send it the correction made to its database, as established in the first paragraph of Article 45;

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For internal use

(3) XVI. The Society does not send the User's response with the evidence supporting said response to the Client within the period established in the second paragraph of Article 45;

(7) XVII. When the Financial Entity sends information without the documentary support referred to in the first paragraph of Article 20 of this Law;

(3) XVIII. The Society omits to deliver to the Client or to the Users the Credit Reports within the period provided for in Article 47;

(3) XIX. The Financial Entity omits to inform the Society, within the established period, of the award issued by the CONDUSEF, in terms of what is provided for in the second paragraph of Article 48;

(2) XX. The Society does not provide the Commission with the list referred to in Article 49;

(3) XXI. The Society omits to provide the CONDUSEF or the Profeco with the report or the models of agreements referred to in Article 50;

(2) XXII. The Financial Entity provides incorrect information to the societies, in cases where there is gross negligence, fraud, or bad faith attributable to it.

(4) XXIII. The Society does not conserve the Client's authorization, in the form and terms that correspond in accordance with the last paragraph of Article 29;

(4) XXIV. (sic) Society omits to deliver to the Client the control number referred to in the penultimate paragraph of Article 42;

(4) XXV. The Financial Entity does not make known to the Society the agreements celebrated with the Client referred to in Article 69.

(4) XXVI. The Society does not offer its services in terms of the second paragraph of Article 13;

(4) XXVII. The Society does not offer to the Clients the services provided for in the third paragraph of Article 13;

(4) XXVIII. The Financial Entity does not deliver all of its information on credit operations in terms of the first paragraph of Article 20, and

(4) XXIX. The Society does not have a toll-free telephone number through which the services provided for in the penultimate paragraph of Article 40 are provided;

(11) Article 61.- The Commission shall sanction with a fine of 300 to 10,000 times the general daily minimum wage in effect in the Federal District, when:

(2) I. The Society omits to notify the Secretariat, the Commission, or the Bank of Mexico, of the start date of its activities, in terms of what is established in the second paragraph of Article 11;

(2) II. The Society modifies its corporate bylaws without having the authorization referred to in the first paragraph of Article 11;

(2) III. The Society has policies or criteria that restrict, hinder, or impose excessive requirements for providing or receiving information, in terms of Article 35;

(3) IV. The Society omits to incorporate, modify, or eliminate the information in its database, in the cases provided for in Article 44;

(5) V. Repealed.

(2) VI. The Society omits to establish in the contracts it enters into with the Users, the obligation provided for in the first paragraph of Article 48.

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For internal use
(4) VII. The Society fails to notify the corresponding authority regarding the failure to send the authorization referred to in the first and second paragraphs of Article 29; (4) VIII. The Society fails to refrain from providing the service to Commercial Enterprises and Sofomes E.N.R. that have incurred a violation of Financial Secrecy, when instructed by an authority in terms of the last paragraph of Article 52. (4) IX. The Financial Entity fails to update the Society with information regarding the payment made by the Client, within the timeframe indicated in the fourth paragraph of Article 20; (4) X. The Society fails to update the information regarding the payment made by the Client, once informed by the User, within the timeframe established in the last paragraph of Article 20; (4) XI. The Financial Entity fails to inform the Societies about the sale or assignment of the portfolio within the timeframe established in the first paragraph of Article 27 Bis; (4) XII. The Financial Entity that acquires the portfolio, in the case established in the fourth paragraph of Article 27 Bis, fails to update the information with the Society regarding the acquired credits, or fails to use, in the information submissions, the same number that the credits had with the Society before the transfer, or fails to attend to Client claims in terms of the third and last paragraphs of said Article; (4) XIII. The Financial Entity that sells or assigns the credit portfolio fails to update the information of the assigned credits or fails to attend to Client claims in the cases provided for in the fifth and last paragraphs of Article 27 Bis; (4) XIV. The Society fails to include in the Credit Reports or Special Credit Reports the name of the acquirer or assignee, the legend regarding the address of the acquirers or assignees, or the annotation regarding the impossibility of updating the records, as established in the second and penultimate paragraphs of Article 27 Bis; (4) XV. The Financial Entity refrains from providing the Client with the Special Credit Report, in the form and terms established in the first paragraph of Article 40; (6) XVI. The Financial Entity sends again to the Society the information, previously contained in its database and which has been modified or deleted, referred to in Article 46; (6) XVII. The Society fails to eliminate from the database the information referred to in Article 23 within the timeframes and conditions indicated in said Article, and (7) XVIII. The Financial Entity uses information provided by the Society for the purpose of being used for labor effects, without a judicial resolution justifying it.

(11) Article 62.- The Commission shall sanction with a fine of 2,000 to 20,000 times the current general daily minimum wage in the Federal District, when:
(3) I. The Society carries out activities other than those established in the first paragraph of Article 13 or prohibited under Article 18; (2) II. The Society or Financial Entity makes improper use or handling of information in terms of Article 22; (12) II Bis. The Society makes improper use of the information referred to in Article 27 Bis of this Law or fails to give the notice indicated in said provision. (12) II Ter. The Users subject to its supervision send information to the Societies that should have been eliminated in accordance with Article 27 Bis of this Law. (3) III. The Society, the Financial Entity, or its officials, employees, or service providers incur a violation of Financial Secrecy or the crime of revelation of secrets in any of the forms provided for in the antepenultimate, penultimate, and last paragraphs of Articles 28, the second and last paragraphs of Article 30, and Article 38;

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For internal use
(2) IV. The Society does not have the manuals referred to in Article 37; (9) V. They fail to share their information with other Societies in terms of what is provided by Articles 36 and 37 Bis of this Law, or deliver information late, incomplete, or distorted; (9) VI. They fail to adjust to the general provisions issued by the Commission, in terms of Articles 36 and 37 Bis of this Law, and (11) VII. They fail to apply the tariff determined by the Commission in terms of what is provided by Articles 36 and 37 Bis of this Law, as well as failing to comply with the provisions referred to in Article 37 Bis. (12) In the event that any of the infractions contained in Articles 60, 61, and 62 of this Law generate a patrimonial damage or a benefit, the corresponding sanction may be imposed by adding to it up to one and a half times the equivalent of said damage or the benefit obtained by the infringer, whichever is greater. Benefit shall be understood as the gain obtained or the loss avoided for oneself or for a third party.

(2) Article 63.- The fines referred to in Articles 59, 60, and 61 may be imposed on both the Societies and Financial Entities, as well as on the administrators, officials, employees, or agents of those Societies and Financial Entities who are responsible for the infraction.

(11) Article 64.- The commissions in charge of the inspection and supervision of Financial Entities or Sofomes E.N.R. may sanction them, as appropriate, with a fine of 300 to 1,000 times the current general daily minimum wage in the Federal District when:
(2) I. They request information without having the authorization provided for in Article 28, without prejudice to other sanctions they may incur, even of a penal nature, in accordance with this Law or other legal provisions; (2) II. They do not respond in a timely and proper manner to Client claims, in accordance with what is established in Articles 43 and 44; (2) III. They do not make the corresponding modifications in their database referred to in Article 45, and (3) IV. They fail to include in their response to a Client claim the elements that the Client considered regarding the claim or attach a copy of the evidence that supported such response, in accordance with Article 45.

(2) Article 65.- The sanctions provided for in this Section, when corresponding to the Commission, shall be imposed by its Board of Directors, who may delegate this power based on the nature of the infraction or the amount of the fine, to the President or other public servants of the Commission itself.

(2) Section III
(2) Sanctions that may be imposed by the Bank of Mexico

(11) Article 66.- The Bank of Mexico shall sanction with a fine of 1,000 to 15,000 times the current general daily minimum wage in the Federal District, the Societies when:
(2) I. They fail to adjust their operations and activities to the general provisions referred to in Article 12; (2) II. They fail to subject themselves to what the Bank of Mexico indicates to them regarding the handling and control of their database, when its dissolution and liquidation are agreed upon, in accordance with Article 16;

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For internal use
(3) III. They refrain from providing the Bank of Mexico with the information and documents, as well as the statistical information referred to in Article 17, or do so in contravention of the general provisions issued by the Bank itself; (3) IV. They fail to eliminate from their database the credit information that the Bank of Mexico establishes through general provisions issued based on the eighth paragraph of Article 23; (2) V. They refrain from observing the terms and conditions regarding the way they may agree with the Users on the substitution of the autograph signature in Client authorizations, in accordance with Article 28; (10) VI. Repealed. (10) VII. Repealed. (10) VIII. Repealed. (3) IX. They refrain from attending to claims in accordance with what is provided in Article 42 or in the terms indicated by the Bank of Mexico through general provisions.

(11) Article 67.- The Bank of Mexico shall sanction with a fine of 1,000 to 15,000 times the current general daily minimum wage in the Federal District, the Financial Entities when:
(2) I. They fail to provide the Societies with information regarding their credit operations, in accordance with the general provisions issued by the Bank itself in accordance with Article 20, or outside the timeframes indicated by it; (2) II. They refrain from observing the program determined by the Bank of Mexico through general provisions, in which it makes known the gradual mechanism to reduce the response timeframe regarding claims filed by Clients with the Societies, and (2) III. They infringe other general provisions issued by the Bank of Mexico, in terms of this Law.

(2) Section IV
(3) Sanctions that may be imposed by Profeco and Condusef

(3) Article 68.- Profeco shall sanction Commercial Enterprises and Condusef shall sanction Sofomes, E.N.R. with a fine of 100 to 1,000 times the current general daily minimum wage in the Federal District, respectively, when:
(3) I. They refrain from using the prevention keys, observation keys, or operational manuals provided for in Article 21; (3) II. They fail to send to the Society the originals of the Client authorizations within the timeframe indicated in the first paragraph of Article 29; (3) III. They fail to provide the Client with the data obtained from the Society, or the information referred to in Article 39; (3) IV. They refrain from immediately making modifications in their database regarding the total or partial acceptance of what is stated in the claim presented by the Client or do not notify the Society that sent the claim and fail to send it the correction made in their database, as established in the first paragraph of Article 45, or fail to attach a copy of the evidence supporting their response as established in the second paragraph of said Article; (3) V. They fail to inform, within the established timeframe, the Society of the award issued by Profeco or Condusef, in terms of what is provided in the second paragraph of Article 48;

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For internal use
(2) VI. Provide erroneous information, when there is gross negligence, fraud, or bad faith attributable to them.
(4) VII. Fail to make known to the Society the agreements entered into with the Client referred to in Article 69.
(4) VIII. Refrain from informing about the sale or assignment of the portfolio to the Societies within the timeframe established in the first paragraph of Article 27 Bis; (4) IX. Fail to update the information with the Society regarding the credits acquired through purchase or acting as assignee, or refrain from using, in the information submissions, the same number that the credits had with the Society before the transfer, or refrain from attending to Client claims in terms of the third, fourth, and last paragraphs of Article 27 Bis; (4) X. Refrain from updating the information of the assigned credits or fail to attend to Client claims in the cases of sale or assignment of portfolio provided for in the fifth and last paragraphs of Article 27 Bis; (4) XI. Refrain from providing the Client with the Special Credit Report, in the form and terms established in the first paragraph of Article 40; (4) XII. Send again to the Society the information, previously contained in the Society's database and which has been modified or deleted, referred to in Article 46; (4) XIII. Fail to deliver information on credit operations in terms of the first paragraph of Article 20; (6) XIV. Fail to comply with the general provisions issued by the Bank of Mexico in terms of Article 12 and the third paragraph of Article 20; (6) XV. Refrain from updating with the Society, within the indicated timeframe, the payment made by the Client, as established in the fourth paragraph of Article 20; (7) XVI. Refrain from informing the Society of the fulfillment of the obligation made by the Client, in terms of the fourth paragraph of Article 20 of this Law; (7) XVII. Send information without having the documentary support referred to in the first paragraph of Article 20 of this Law, and (7) XVIII. Use information provided by the Society for the purpose of being used for labor effects, without a judicial or legal mandate justifying it.

(5) Last paragraph.- Repealed.

(4) Article 68 Bis.- The fines referred to in the previous article may be imposed on both Commercial Enterprises and Sofomes, E.N.R., as well as on their administrators, officials, employees, or agents who are responsible for the infraction.

(1) CHAPTER VI
DEBT RESTRUCTURING AND WRITE-OFFS

(3) Article 69.- If a Client enters into an agreement with the creditor whereby the initial obligation is reduced, modified, or altered, the User who must send the respective information to the Society must make this situation known, so that an annotation is made in the database and consequently in the Credit Reports and Special Credit Reports issued by it. This annotation must use the prevention or observation key that is applicable, in order to adequately reflect the conditions, terms, and reasons for the restructuring, for which aspects such as whether it was carried out as a consequence of modifying the debtor's situation, by market conditions, or if said credit was subject to a judicial process, among others, must be taken into consideration.

(4) When exercising the power to approve the prevention and observation keys referred to in Article 21, the Commission must verify that there are various keys that adequately reflect the conditions of a restructuring or a settlement.

(4) If a Client obtains a favorable judicial resolution regarding a credit, the prevention or observation key regarding this credit must reflect this circumstance, and eliminate all reference to a default.

ARTICLE 70.- In the event that the restructuring is due to an offer by the User, this situation must be reflected in the Credit Report that is issued.

TRANSITIONAL PROVISIONS
(Decree issuing the Law to Regulate Credit Information Societies, published in the Official Gazette of the Federation on January 15, 2002)

FIRST.- This Decree shall enter into force thirty calendar days following its publication in the Official Gazette of the Federation, except for what is provided in Transitional Articles Second and Third below.

SECOND.- The Societies and Financial Entities shall have a period of six months to adjust their systems and structures to what is provided in this Decree.

THIRD.- The period of thirty calendar days referred to in Article 44 of this Law shall enter into force no later than December 31, 2004. In no case may it exceed 60 days from the entry into force of this Law. The Bank of Mexico, through general provisions, shall issue a program in which it makes known the gradual mechanism to reduce the response timeframe of the Users, so that they make the adjustments to their systems and comply with what is stated in the cited legal provision.

FOURTH.- The Users who, on the date of entry into force of this Decree, maintain legal relationships with their Clients, may continue to make periodic inquiries to the Societies regarding the credit behavior of such Clients, until such legal relationships end for any cause.

FIFTH.- Articles 33, 33-A, and 33-B of the Law to Regulate Financial Groupings, the General Rules to which credit information societies referred to in Article 33 of the Law to Regulate Financial Groupings must adhere, as well as other provisions that oppose what is provided by this Law, are repealed.

Mexico, D.F., December 27, 2001.- Sen. Diego Fernández de Cevallos Ramos, President.- Dip. Beatriz Elena Paredes Rangel, President.- Sen. Yolanda E. González Hernández, Secretary.- Dip. Rodolfo Dorador Pérez Gavilán, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree at the residence of the Federal Executive Power, in Mexico City, Federal District, on the fourteenth day of the month of January of two thousand two.- Vicente Fox Quesada.- Signature.- The Secretary of the Interior, Santiago Creel Miranda.- Signature.

TRANSITIONAL PROVISIONS
(Decree reforming and adding various provisions of the Law to Regulate Credit Information Societies, published in the Official Gazette of the Federation on January 23, 2004)

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For internal use

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

SECOND.- The Societies must eliminate from their database the records with information, of natural and legal persons, regarding credits due before January 1, 2000, whose amount on said date is less than $3,000.00 for natural persons and $10,000.00 for legal persons.

The Users who are Financial Entities that have implemented support programs for their debtors with or without the participation of the Federal Government, must report to the Societies the information of the Clients who adhered to said programs with an annotation that on that date denotes punctual and timely payment. The aforementioned information must be sent to the Societies no later than February 2, 2004. This is without prejudice to the Users providing the information corresponding to the credit behavior of the Clients after their adherence to the aforementioned programs, in accordance with the applicable provisions.

THIRD.- Regarding credits granted prior to the entry into force of the Law to Regulate Credit Information Societies, the Users who maintain legal relationships with the respective Clients, including those who acquire credit portfolio or those who administer credit portfolio of other Users, may make periodic inquiries to the Societies regarding the credit behavior of such Clients, until such legal relationships end, without needing to have the authorization referred to in Article 28 of said Law.

When Users have sold or assigned credit portfolio to persons who are not Users in terms of the aforementioned Law, they must inform the Societies within 60 calendar days following the date of entry into force of this Decree. In this case, the Societies must include in the Credit Reports and Special Credit Reports they issue, an annotation stating the impossibility of updating the respective records for the mentioned reason.

FOURTH.- The Societies that are in operation on the date of entry into force of this Decree shall have a period of 60 calendar days counted from said date to comply with what is provided in subsection III of the fifth paragraph of Article 40 of the Law to Regulate Credit Information Societies.

FIFTH.- The procedures for the imposition of administrative sanctions, followed prior to the entry into force of this Decree, will continue to be processed in the stage in which they are in accordance with the provisions of the latter.

Mexico, D.F., December 28, 2003.- Dip. Juan de Dios Castro Lozano, President.- Sen. Enrique Jackson Ramírez, President.- Dip. Ma. de Jesús Aguirre Maldonado, Secretary.- Sen. Sara I. Castellanos Cortés, Secretary.- Signatures.

In compliance with what is provided in fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its due publication and observance, I issue this Decree at the residence of the Federal Executive Power, in Mexico City, Federal District, on the sixteenth day of the month of January of two thousand four.- Vicente Fox Quesada.- Signature.- The Secretary of the Interior, Santiago Creel Miranda.- Signature.

TRANSITIONAL PROVISIONS
(Decree reforming, adding, and repealing various provisions of the Law to Regulate Credit Information Societies, published in the Official Gazette of the Federation on February 1, 2008)

FIRST.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation, except for what is provided in Article 2, fraction I, Articles 20, 37 Bis, 46, and 69, which shall enter into force 180 calendar days, counted from the entry into force of this Decree.

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SECOND.- The Societies shall have a period of 90 natural days, counted from the entry into force of the present Decree, to comply with the provisions of Articles 8o Bis, 13, second and third paragraphs, 21, 23, 27 Bis, second paragraph, 42, and 47.

The first elimination of records referred to in this Law shall be carried out within the period defined in this Transitional Provision.

THIRD.- The Users shall have a period of 90 natural days, counted from the entry into force of the present Decree, to comply with the provisions of Article 27 Bis.

FOURTH.- The Users that are Financial Entities which have implemented support programs for their debtors with or without the participation of the Federal Government, must report to the Societies the information of the Clients who benefited from such programs with an annotation indicating that on that date they made punctual and timely payments.

The Users referred to in this article shall be sanctioned by the Commission with a fine of 100 to 1,000 times the general daily minimum wage in effect in the Federal District for each record in which the annotation referred to in the preceding paragraph is omitted.

FIFTH.- The Societies must eliminate from their databases the records related to overdue and assigned credits prior to July 1, 2002, whose amount does not exceed four hundred thousand UDIS and whose records have not been updated between that date and November 1, 2007.

The Societies shall be sanctioned by the Commission with a fine of 100 to 1,000 times the general daily minimum wage in effect in the Federal District for each record in which the elimination referred to in the preceding paragraph is omitted.

SIXTH.- The Societies shall have a period of 100 natural days counted from the entry into force of the present Decree to send to the Commission for its approval the prevention and observation keys referred to in Article 21. Until such time as the Commission approves said prevention and observation keys, the Societies will continue to apply those in effect at the time of the request.

Mexico, D.F., on December 12, 2007.- Sen. Santiago Creel Miranda, President.- Dip. Ruth Zavaleta Salgado, President.- Sen. Claudia Sofía Corichi García, Secretary.- Dip. Jacinto Gómez Pasillas, Secretary.- Signatures.

In compliance with the provisions of fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on January 14, two thousand eight.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Francisco Javier Ramírez Acuña.- Signature.

TRANSITIONAL PROVISIONS
(Decree reforming and adding various provisions of the Law to Regulate Credit Information Societies, published in the Official Gazette of the Federation on January 20, 2009) Sole.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation.

Mexico, D.F., on December 11, 2008.- Sen. Gustavo Enrique Madero Muñoz, President.- Dip. Cesar Horacio Duarte Jaquez, President.- Sen. Renan C. Zoreda Novelo, Secretary.- Dip. Jacinto Gómez Pasillas, Secretary.- Signatures.

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two thousand nine.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Lic. Fernando Francisco Gómez Mont Urueta.- Signature.

TRANSITIONAL PROVISIONS
(Decree reforming, adding, and repealing various provisions of the Law for the Transparency and Order of Financial Services, the Law of Credit Institutions, the Law to Regulate Credit Information Societies, the Law of Transparency and Promotion of Competition in Guaranteed Credit, and the Law of the Bank of Mexico, published in the Official Gazette of the Federation on May 25, 2010) First. This Decree shall enter into force the day following its publication in the Official Gazette of the Federation.

Second. The Bank of Mexico shall issue general provisions referred to in Article 4 Bis of the Law for the Transparency and Order of Financial Services within a period of sixty natural days counted from the day following the entry into force of this Decree.

Third. Entities shall have a period of ninety natural days, counted from the day following the entry into force of this Decree, to comply with the provisions of Article 4 Bis 1 of the Law for the Transparency and Order of Financial Services and 48 Bis 2 of the Law of Credit Institutions regarding basic credit card products.

Fourth. Persons who operated before the entry into force of this Decree as Clearing Houses in terms of the provisions of Articles 19 and 19 Bis of the Law for the Transparency and Order of Financial Services, shall have a period of ninety natural days counted from the date on which the general provisions issued under said provisions enter into force, to submit the respective authorization request.

Fifth. Societies shall have a period of one hundred eighty natural days counted from the day following the entry into force of this Decree to comply with the obligations referred to in Articles 2 and 36 Bis of the Law to Regulate Credit Information Societies.

Credit Information Societies shall have a period of up to one hundred eighty natural days from the entry into force of this Decree to submit to the Commission the agreement mentioned in Article 36 of the aforementioned Law.

Credit information societies must obtain authorization from the National Banking and Securities Commission regarding the tariffs that such societies must offer to their Users for credit reports, in terms of Article 36 Bis of the Law to Regulate Credit Information Societies, within the one hundred eighty natural days following the entry into force of this Decree.

Sixth. For the purposes of Article 20, Societies must eliminate, within a period not exceeding 90 natural days, from their databases records whose origin has not been informed by Users prior to this reform. For re-inscription, Users must specify the dates of origin of the credit and of its first default, the latter not being greater than 72 months.

Mexico, D.F., on February 11, 2010.- Sen. Carlos Navarrete Ruiz, President.- Dip. Francisco Javier Ramirez Acuña, President.- Sen. Martha Leticia Sosa Govea, Secretary.- Dip. Carlos Samuel Moreno Teran, Secretary.- Signatures.

In compliance with the provisions of fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on May 14, two thousand ten.- Felipe de Jesús Calderón Hinojosa.- Signature.- The Secretary of the Interior, Lic. Fernando Francisco Gómez Mont Urueta.- Signature.

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TRANSITIONAL PROVISIONS
(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)
ARTICLE FIFTIETH.- In relation to the modifications referred to in Articles Forty-First to Forty-Ninth of this Decree, the following shall apply:

I. Article Forty-Third, which shall enter into force thirty natural days following the publication of this Decree, and

II. Article Forty-Seventh, which shall enter into force seven hundred thirty natural days following the publication of the Decree by which the Law of Insurance and Surety Institutions is issued and various provisions of the Law on the Insurance Contract are reformed and added, published on April 4, 2013, in the aforementioned Official Gazette.

III. Infractions and crimes committed prior to the entry into force of this Decree shall be sanctioned in accordance with the law in effect at the time such infractions or crimes were committed.

In administrative proceedings that are pending, the interested party may opt for their continuation in accordance with the procedure in effect at the time of their initiation or for the application of the provisions applicable to administrative proceedings stipulated by this Decree.

IV. The obligation to hold the certification referred to in Article 4, fraction X, of the Law of the National Banking and Securities Commission, shall enter into force as of January 1, 2015. The general provisions referred to in said provision shall be issued by the Commission no later than September 2014.

TRANSITIONAL PROVISION
(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) SOLE. This Decree shall enter into force the day following its publication in the Official Gazette of the Federation, except as provided in ARTICLES TWENTY-FIFTH, fraction I; THIRTIETH, fractions IV and VI; FORTIETH, fractions I and II; and FIFTIETH, fractions I and II, which shall enter into force on the dates established in said provisions.

Mexico, D.F., on November 26, 2013.- Dip. Ricardo Anaya Cortes, President.- Sen. Raúl Cervantes Andrade, President.- Dip. Javier Orozco Gomez, Secretary.- Sen. María Elena Barrera Tapia, Secretary.- Signatures.

In compliance with the provisions of fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I issue this Decree at the Residence of the Federal Executive Power, in Mexico City, Federal District, on January 9, two thousand fourteen.- Enrique Peña Nieto.- Signature.- The Secretary of the Interior, Miguel Ángel Osorio Chong.- Signature.

TRANSITIONAL PROVISION
(Decree by which the Law to Regulate Financial Technology Institutions is issued and various provisions of the Law of Credit Institutions, the Securities Market Law, the General Law of Credit Auxiliary Organizations and Activities, the Law for the Transparency and Order of Financial Services, the Law to Regulate Credit Information Societies, the Law for the Protection and Defense of Financial Services Users, the Law to Regulate Financial Groupings, the Law of the National Banking and Securities Commission, and the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin are reformed and added, published in the Official Gazette of the Federation on March 9, 2018) SOLE.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation, unless otherwise provided in the Transitional Provisions of this Decree.

Mexico City, on March 1, 2018.- Sen. Ernesto Cordero Arroyo, President.- Dip. Edgar Romo García, President.- Sen. Rosa Adriana Díaz Lizama, Secretary.- Dip. Ana Guadalupe Perea Santos, Secretary.- Signatures.

In compliance with the provisions of fraction I of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I issue this Decree in the municipality of Acapulco de Juárez, state of Guerrero, on March 8, two thousand eighteen.- Enrique Peña Nieto.- Signature.- The Secretary of the Interior, Dr. Jesús Alfonso Navarrete Prida.- Signature.

TRANSITIONAL PROVISION OF THE DECREE
(Decree reforming, adding, and repealing various financial laws regarding administrative procedure, published in the Official Gazette of the Federation on January 24, 2024) First.- This Decree shall enter into force the day following its publication in the Official Gazette of the Federation.

Second.- Sanctioning administrative proceedings that, as of the date of entry into force of this Decree, have been initiated, shall continue until their conclusion, in accordance with the procedure in effect at the time of notification to the alleged infringer.

Third.- Resolutions that end revocation administrative proceedings that have been initiated through notification of the act by which the right to a hearing is granted, prior to the entry into force of this Decree, shall continue until their conclusion, in accordance with the procedure in effect at the time of notification to the corresponding institution or entity.

Fourth. The processing and resolution of sanctioning proceedings that, as of the date of entry into force of this Decree, have been initiated by the Bank of Mexico shall be governed by the provisions of the Supervision Rules, Self-Correction Programs, and Sanctioning Procedure, in effect on the same date of entry into force of this Decree.

EXPLANATORY STATEMENT
(Decree of January 15, 2002)
Since the last decade, the behavior of bank and commercial credit has been fluctuating, moving through a period of significant credit supply, until falling in a second period to nearly zero levels. For several years, numerous credit operations were carried out with great participation of financial entities and constant demand from society, but in recent years, despite the growing demand, the granting of credits has fallen considerably, almost coming to a halt today, causing a stagnation of the Mexican financial system.

To counteract this phenomenon, (sic) the Congress of the Union has advanced through various legal reforms in consolidating the legal framework regulating financial activities. The Federal Government, consistent with an economic development policy, continues to promote the necessary mechanisms aimed at reactivating credit, the cornerstone of free market financial systems.

Precisely, one of these legal reforms consisted in the issuance in 1990 of the Law to Regulate Financial Groupings, which sets out the general bases governing this type of organization. (sic) With this, legal certainty and organization were gained for those involved in the sector, and more flexible regulation mechanisms were established by administrative authorities; but the main purposes for which this Law, like others, was created, namely to contribute to the constant growth of our financial system, promoting the granting of credits and the possibility of paying them, remain pending.

In 1993, in order to promote the culture of payment and lower the costs of financial services, the figure of credit information societies, commonly known as Credit Bureaus, was created in the Law to Regulate Financial Groupings. Their activity consists of integrating and managing a database that records the active operations of financial entities, in order to have the credit history of bank users and other financial entities. Thus, to operate as a credit information society, authorization from the Secretariat of Finance and Public Credit is required, prior to the opinion of the Bank of Mexico, and they are subject to inspection and supervision by the National Banking and Securities Commission.

In this order of ideas, due to the importance of the information handled by these societies, as they can inhibit credit activity and thereby impede the development of our financial system, due to the importance of handling confidential information that must be considered for all purposes as the property of each citizen and each person, due to the lack of homologous criteria to form the database of these societies, and because citizens are prevented from changing their credit history in the database, and generally, because there are currently no protection and defense mechanisms for natural and legal persons who have the right to disagree with erroneous information caused by fraud, negligence, or bad faith in the databases of these societies. What is sought with the present initiative is to define in the Law the conditions that govern the activities of this type of society, in order to provide certainty and legal security to the users of these societies, but above all, to individuals who carry out credit and service operations with financial entities and commercial companies that feed the databases of these societies.

Indeed, the creation in 1993 of this type of private society left many gaps that are currently pending to be filled, as well as they set out the minimum bases to which their activities must be subject, such as establishment requirements and some sanctions, the Law itself granted an exorbitant discretionary power to the Secretariat of Finance and Public Credit and the Bank of Mexico, allowing them to determine through general rules issued for this purpose, different issues to which the activities of such societies must be subject, issues that are not merely instrumental, but substantive.

Therefore, we consider it of utmost importance to fix in the Law, and not in administrative provisions, the most elementary rights that those accessing credit must have, along with fixing greater responsibilities and sanctions for both financial entities and credit information societies for the misuse of the information collected.

For this reason, we propose in the text of the Law to be reformed, the possibility for the person to request their Credit Report, either personally before the Specialized Unit of the Society or the User, or through electronic means.

On the other hand, the possibility is sought for the exchange of information contained in the database between different Societies.

In conclusion, the intentions motivating this Initiative are to avoid injustices committed against bank and other entity users due to the unjustified use of credit information, in order to provide legal security to those obtaining financing, as well as to constitute the necessary conditions for both borrowers and lenders to have the necessary tools to access credit on one hand, and to fulfill payment on the other, as well as to enable the modification of existing errors in the database, establish homogeneous criteria regarding the interpretation and modification of information contained in the corresponding report, avoid errors in credit reports themselves, publicize procedures and mechanisms to modify databases, and protect the rights and interests of persons found in these databases, in order to provide them with security and legal certainty in the operations they carry out, as well as to constitute the necessary conditions for both borrowers and lenders to have the necessary tools to access credit on one hand, and to fulfill payment on the other, which can only be achieved by having a healthy and balanced financial system that is not broken again. Credit operations must be reactivated if sustainable economic development is desired, and the conditions for this to occur must be purified, otherwise, any economic improvement statistics will always be illusory. The productive and financial sectors will benefit to the extent that they agree on sound economic practices by both parties.

For the above, I allow myself to submit to this Honorable Assembly the following Initiative.

EXPLANATORY STATEMENT
(Decree of January 23, 2004)
The global economic slowdown, which has had negative effects on our country, highlights the need to promote greater dynamism in the national economy, for which, among other things, the role of banking financial intermediaries stands out as an indispensable factor, who must respond effectively to the growing demand for resources to finance national investment and consumption.

However, even with the marked decrease in interest rates and the increasing need for resources, banking financial intermediaries have not yet been able to contribute to their full potential to the economic recovery of the country, by halting the flow of resources that should be channeled to finance both the productive sector and final consumption, in order to stimulate the dynamism of the economy.

As a cause of the above, it must be recognized that the level of risk constitutes a fundamental factor in the decision to place resources by banking financial intermediaries, so, in such a situation, the work of credit information societies acquires great relevance.

In this way, the purpose of these societies is to register the payment history of natural and legal persons, and their importance lies in providing valuable information to credit grantors on the credit behavior of their potential clients, which helps reduce the risk of not recovering the resources they lend to them.

It should be noted that currently, Buró de Crédito is the society authorized by the Secretariat of Finance to perform this labor, and its activity is based on the Law to Regulate Credit Information Societies.

On the other hand, for the purpose of having information that may be useful for a reliable analysis of the solvency of potential credit subjects, it is necessary that information on the histories

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In this regard, as of August 15, 2002, and in accordance with Article 23 of the Law for the Regulation of Credit Information Companies, Buró eliminates the record of credits only when they have been closed for 7 years, and provided there is no outstanding debt or existing legal relationship with the Credit Grantor. Notwithstanding, I consider this period excessive, and consequently obstructs the flow of resources between financial intermediaries and consumers, so it is important to reduce it through the reform now proposed to the aforementioned legislation. In this vein, the proposal I now bring to your consideration consists of reducing the current period of 84 months, that is, 7 years, as provided in the first paragraph of Article 23 of the Law for the Regulation of Credit Information Companies, by a period of 24 months less, to remain at only 60 months, that is, 5 years. It should not be forgotten that many negative credit histories were the product of the successive economic crises experienced in our country, which gradually undermined the assets of Mexican families over the years, resulting in the insolvency that is now manifested in the impossibility for many families to obtain a credit that would increase their well-being. The reduction of the period of permanence of the histories will undoubtedly translate into various benefits, ranging from the well-being of families who will be able to enjoy credit in less time, to the reactivation of the economy through the promotion of final consumption. Additionally, it must be considered that the proposed decrease in the period of permanence of the histories is not excessive, and therefore does not increase the risk faced by financial intermediaries in granting credits, since they still have the possibility of analyzing a person based on their credit history from five years ago. Thus, for the aforementioned reasons and grounds, I submit to your consideration the following Initiative with a Draft Decree amending Article 23 of the Law for the Regulation of Credit Information Companies:
EXPLANATORY STATEMENT
(Decree of February 1, 2008)
The institutions that provide services for the collection, handling, and delivery or sending of information regarding the credit history of individuals and legal entities, have as their main purpose to contribute to the development of the country by providing services that minimize credit risk, by supplying information that helps to know the economic solvency and behavior of companies as well as individuals, which in turn favors the formation of a credit culture among the population. The current economic dynamics force us to take important measures regarding credit, coupled with the latest reforms to the Law for the Regulation of Credit Information Companies, published in the Official Journal of the Federation on Friday, January 23 of this year, we consider it important to modify subsection e of the second paragraph, item 2° of the aforementioned Law, which establishes the term in which information regarding housing credits must be entered into the so-called "Credit Bureau" or "Primary Data Base". This article establishes for housing credits, one hundred eighty days or six monthly payments subsequent to the date of maturity of the first amortization not covered by the borrower, whichever is less. We consider that one hundred eighty days is too long a time to enter this information, which gives rise to the debtor requesting other types of credits during these six months in order to cover the preceding one; likewise, it exposes the institutions and/or companies responsible for granting these credits to granting them to insolvent persons. We believe that by shortening the time to four months or 120 days, to insert this information, we also decrease the possibilities of an insolvent individual becoming entangled in credit requests that they cannot possibly cover and that will only bring them greater debts.

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On the other hand, it also becomes a way to provide certainty to investors who will have the assurance that the individual to whom the credit is granted is economically solvent and free of debts.
This term shall be considered unless due to some circumstance the debtor sues their creditor or a settlement is reached; in such cases, the debt information shall not be entered into the Credit Information Institutions. Until there is a final judgment establishing the payment of the debt.
In conclusion, the time to enter into the Credit Bureau is excessive, which opens the possibility for delinquent clients to make more credit requests to the detriment of other applicants and of the construction industry in this particular case.
On the other hand, and in order to be consistent, it is logical to adjust the terms also in the case that delinquent subjects have liquidated their debt, and there is no reason to remain in the Credit Bureau; in this sense, and just as it is proposed to reduce the terms to enter the bureau for delinquency, the stay in the same must also be reduced if the subject shows commitment and liquidates their debts. It is for this reason that the modification to Article 23 in its first paragraph is proposed, which states that companies are obliged to conserve the records provided to them by Users, corresponding to individuals, for a period of eighty-four months. In view of the foregoing arguments, I submit to the consideration of this Sovereignty the following EXPLANATORY STATEMENT (Decree of January 20, 2009) Credit Information Companies, such as the well-known Credit Bureau, are private companies regulated by the relevant law, namely, the Law for the Regulation of Credit Information Companies. These companies function as a database of the information existing between consumers and credit institutions, with the purpose of managing credit risk.
Article 5 of the aforementioned law states that the services provided by these companies consist of the collection, handling, and delivery or sending of information regarding the credit history of individuals and legal entities. For the collection of data, credit institutions and commercial companies compile a credit history with the information of clients who have at some point requested a commercial credit card, a bank card, or a restricted telephone or television service; in this way, credit information companies sell the collected information materialized in a credit report to an individual, financial entities, and commercial companies that have the express authorization of said person, through their handwritten signature.
Although Credit Bureau seeks to have less information asymmetry, which stems from the transparency of the credit risk of persons, it often ends up harming the Clients themselves.
The main problem lies in the improper use of information, as well as in the lack of concern of credit institutions regarding the accuracy and renewal of the information they provide.
The fact that Clients seek to process commercial credit cards, bank cards, or use a restricted telephone or television service is justified insofar as these users require a service that facilitates their daily life, and not one that puts obstacles in their way; therefore, when acquiring a service or processing a card, they sign a contract in which the bases for the fulfillment of the services agreed upon by both parties are established. However, the use of the signature established in the service acquisition contract automatically allows that personal information to be transferred to a Credit Information Company without the Client being informed of the same. Clients are marked with more or less risk through their credit histories, which depends on their timely payments. However, there are cases where the clients' debts have already been paid and the information in their history is not updated, so they continue to be considered debtors by credit institutions.

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Considering that the most important thing is to protect the personal information and identity of Clients, the same Law in its Article 28 establishes that Companies may only provide information to a User when the latter has the express authorization of the Client, through their handwritten signature, where it is clearly stated that they have full knowledge of the nature and scope of the information that the Company will provide to the User who requests it, the use that said User will make of such information, and the fact that they may make periodic queries of their credit history, during the time they maintain a legal relationship with the Client. However, the causal relationship established between Clients and Companies is very broad, as both parties do not establish direct contact; it is the credit institutions that, in addition to being the main agents who use the information managed by the Companies, act as intermediaries generating contracts with both. Both credit institutions and credit information companies assume a delicate responsibility for the handling of citizens' data; an activity that, when not adhering to ethics or carried out without due care, generates damage to the Client's assets, the repair of which it is absurd for the affected party to cover themselves. The capacity of legislators to carry out the reforms we deem necessary in matters of Credit Information regulation is established in fraction X of Article 73 of the Political Constitution of the United Mexican States; here it is established that the Congress of the Union has the authority to legislate in matters of commerce, intermediation, and financial services. The initiative proposed aims to strengthen the legal certainty of individuals or legal entities who are Clients of financial entities, commercial companies, and Sofomes E.N.R., whose credit history may appear in the database of credit information companies, known as Credit Bureau. Although in February of this year various provisions of the Law for the Regulation of Credit Information Companies were reformed, a new reform is required today that implies providing greater legal certainty to Clients. The reforms to the Law of Credit Information Companies that I propose in this Initiative will oblige Credit Bureau and financial and commercial entities to act responsibly, to ensure the existence of the contractual relationship between the Credit Institution and the Client, and of the non-compliance, by the latter, of the obligation; for, reality clearly demonstrates that the existence of a unilateral registration of credit information is not enough. The mere publication of erroneous information constitutes, by itself, a damage to the citizen. With these modifications, the information possessed by the companies must contain the complete data of the Client's credit performance, in such a way that it incorporates the amount of timely and/or advance payments made by him, creating an integral credit profile; it is inadmissible
to constitute a credit reference of the citizen only by noting the non-compliance and not their history of compliance. The current legislation obliges the User to inform the Company of the Client's compliance, turning them into true collection instruments and distancing the companies from the nature of their object; leaving, moreover, the Client with the obligation to inform of the payment made. With the reform to the fourth paragraph of Article 20, we free the User from said obligation, establishing greater protection for the Client. This reform is necessary, since the update of data regarding movements related to credit operations is carried out by Users on a monthly basis, but it is frequent that they are delayed by two, three, or more months, so that, in case the Client has any interest in having Credit Bureau reflect in their file that they are a good complier of their obligations, they do not have to bear the obligation of requesting the User to notify the Company of their compliance. The initiative also seeks to protect Clients who have been registered as debtors in the Credit Bureau database and who, despite having already paid their debt, continue to appear as debtors. To this end, it is intended to add Article 51 of the Law for the Regulation of Companies to sanction those that do not cancel and modify the credit history in favor of the Client who has already paid their debt, within a period not greater than three business days after the date of payment.

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To ensure the good development of the financial system, both with respect to Clients and their creditors, whether financial entities or commercial companies, it is indispensable that Clients of financial and mercantile entities, which act as Users of the services of the companies, see their interests protected with respect to the information contained in their database. It is necessary that the companies register the data of payments of any due operation in the shortest possible time. The transparency and certainty of the information contained in the database of each company will foster sound practices in this area, a solid and efficient financial system, as well as better credit conditions for the general public, who mostly have a favorable credit history. On the other hand, the present Initiative proposes an addition to Article 20 to establish that when there is a credit recovery program by financial entities, commercial companies, or Sofomes E.N.R. and the Client adheres to the benefits thereof in order to fulfill the obligation undertaken, since it is an agreement between the parties, they shall not be registered in the Databases of the companies and shall be considered fully covered by reason of the write-offs, discounts, or reductions that the parties have agreed upon. Finally, it is necessary to point out that most of the time the Client is in a state of defenselessness against deficient services and improper charges that constitute true frauds against the consumer. Part of the importance of the present Initiative lies in the search to protect the integrity of Clients. For the aforementioned reasons, I submit to the consideration of this Assembly the following Initiative that reforms articles 20, 23, 60, and 68; and adds articles 2, 20, and 51, all of the Law for the Regulation of Credit Information Companies, in the following wording:
EXPLANATORY STATEMENT
(Decree of May 25, 2010)
Throughout history, the world economy has gone through periods of major financial crises.
The common characteristic of all these crises is that the interest rate rose abruptly as a result of the great exceptional demand for money associated with this phase of economic crisis.
In the case of Mexico, during 1994-1995, one of the most violent economic crises in its entire history was experienced, which caused a drastic drop in GDP and an even greater impoverishment of most Mexican families.
As a consequence of the banking rescue, and as a product of the Capitalization and Portfolio Purchase Programs (PCCC) and the Sanitation Programs, the Banking System became a creditor of obligations (promissory notes) owed by the Federal Government, for approximately 329,268 million pesos (at gross value).
As a result of the foregoing, practically all economic indicators suffered a collapse, and interest rates skyrocketed to extremely high levels.
For example, in Mexico and Latin America, financial liberalization in the last two decades transformed the financial systems of their economies; this change in banking and financial policy has decreased the State's participation in the determination of rates and commissions in the banking sector, and at the same time has affected investment amounts, growth, as well as access to financing that characterized the second half of the 20th century. Currently, banking systems in Latin America are faced with non-competitive structures that favor obtaining profits from large differentials between credit rates and savings rates. According to the World Bank, in terms of competitiveness of our financial system, private sector bank credit relative to GDP in 2005 shows that Switzerland has a proportion of 171%, the United Kingdom 160%, Spain 126%, the Republic of Korea 97%, Chile 63%, and, within the NAFTA scope, Canada records 76%, the United States 48%, while our country is only located at 13% of credit relative to GDP. According to results from the Bank of Mexico, indicate that among the main reasons why financing is not requested are high interest rates, bank refusal, and economic uncertainty. In this context, the excesses of a commercial banking sector that has not managed to self-regulate nor strengthen the payment system, limit as a whole the capacity of monetary policy and reduce the growth capacity of the national economy. Regarding credit cards in our country, it is of great concern that internationally Mexico is located among the countries in Latin America with the highest costs for credit cards. According to data from the National Commission for the Protection and Defense of Users of Financial Services (Condusef), indicate that national entities apply an Annual Total Cost (CAT) that ranges between 32% and 66%, while in Chile it is located between 47% and 53% at maximum. That even in Colombia charges vary between 28% and 36%, in Peru they move from 24% to 60%, while in Venezuela they are located at 33%. The figure is even higher with respect to countries such as Canada, where the CAT reaches between 18% and 20%; in Spain it is situated between 8% and 25% and in the United States between 8% and 16%. The plastic with the highest CAT is Invex with the Spira Classic Visa, while the cheapest is Inbursa with 42.82%. Entities such as Scotiabank with the Traditional Classic have a CAT of 59.34%, HSBC of 63.68%, Banamex with its Classic card reaches 70.27% and BBVA-Bancomer with the Azul, of 79%. It could be affirmed that the promotion of the use of credit cards has become a gold mine, to obtain extraordinary income with that activity that reaches limits that could be considered usurious. It is important to remember that all credit cards charge delinquency interest, which is applied to the outstanding balance and practically doubles the interest rate that the respective credit card normally charges (sic). The aggressive campaigns for the placement of bank
and commercial plastics, the expansion of credit lines without prior opinion or client request, and without an analysis of their credit capacity, the strategy followed in recent months by some banks to attack sectors of the population considered higher risk and on whom there is no prior credit information, as well as the constant promotions of commerce inciting to buy now and pay in 3, 6, or more months without interest, have generated that the population has fallen into unnecessary over-indebtedness. The delinquent portfolio of credit cards grows alarmingly, such is the case that the National Commission for the Defense of Users of Financial Institutions (CONDUCEF), states that as of January of this year, more than seven million cardholders are in delinquent portfolio for not having made the minimum payments in the last three months, which is equivalent to 39% of users of this type of consumer credit. The National Banking and Securities Commission (CNBV) reported that in the year 2007, 25,588 million pesos were generated by charges to credit card users, and that despite modifications to the Laws of Credit Institutions, Protection and Defense of Users of Financial Services, and the National Banking and Securities Commission being approved in April 2007, with the purpose of promoting competition and reducing the collection of commissions, the result is that the main foreign banks operating in Mexico, such as CityGroup, HSBC, BBVA, and Scotiabank, charge higher commissions than in their own countries of origin. To mention some examples:
Collection of Annual Total Cost (CAT):

HSBC: in Mexico charges up to 77% on credit cards, in England charges 16%;

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Scotiabank: charges Mexicans 77% and Canadians 18%;
BBVA Bancomer: charges 80% in Mexico and 25% in Spain
Banamex Citygroup: charges 85% in Mexico, 9% in the United States.
From the figures above, it can be observed, for example, that the main foreign banks operating in Mexico, such as Citigroup, HSBC, BBVA and Scotiabank, charge commissions up to eight or 10 times higher than in their countries of origin.
In Mexico, up to $1.70 is paid to withdraw money from an ATM that is not part of the bank's network, while in Chile, Argentina and Venezuela less than $1 is paid, and the average cost of a bounced check in Mexico is around $70, whereas this charge in the United States is around $30.
According to information from the National Banking and Securities Commission (CNBV) and the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF), there are currently around 20 million credit, debit, savings and other cards circulating throughout Mexico, where six thousand five hundred are issued daily.
Regarding the interest rate added with the commissions charged to credit card users, better known as the Total Annual Cost (CAT), the average is 75%, which is equivalent to charging more than twenty times the rate they pay.
For credit card debtors, their main inconvenience is the "CAT", since according to official information, its average, from a sample of 28 cards, is 75%.
From the above, we can observe some examples in the following comparative tables:

BANCO	TARJETA	CAT
AFIRME	Clásica	47.58%
INBURSA	EFE clásica	50.72%
BAJÍO	Visa clásica	52.34%
IXE	Visa clásica	58.53%
SCOTIABANK	Visa clásica	60.40%
BANORTE	Clásica	65.51%
BANREGIO	Clásica	67.91%
HSBC	Visa clásica	71.11%
AMERICAN EXPRESS	Verde	73.96%
BANAMEX	Clásica	77.02%
BBVA	Azul	80.76%
SANTANDER	Visa clásica	84.20%
INVEX	Spira Clásica	113.40%

Source: El financiero, with information from CONDUSEF, Infosel and BANXICO Comparative of bank card rates as of June 2008

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BANCO	TASA MENSUAL %	TASA ANUAL	CAT	INGRESOS MÍNIMOS*	COMISIÓN POR ANUALIDAD*
AZTECA	8.40	100.28	N/D	N/D	sin costo
SANTANDER	4.16	49.94	81.36	DE $5,000 a $12,000	sin costo de $390 a $52,000 titular de $195 CALASICA (sic) a $1,000 adicional
BBVA-BANCOMER	4.00	47.94	81.30	DE $6,000 a $12,000	sin costo de $410 a $630 titular de $205 (Clásica y Oro a $315 adicional (sic)
BANEMEX	3.66	43.94	71.73	DE $5,000 a $12,000	sin costo de $400 a $600 titular (Clásica y Bsmart) de $0 $300 adicional
AMERICAN EXPRESS	3.66	43.94	77.36	DE $6,000 a $10,000	sin costo de $150 a $405 USD titular (Blue y Gold card) de $200 a $325 adicional
HSBC	3.58	42.94	69.25	DE $3,500 a $12,000	sin costo de $310 a $510 titular de $170 a Clásica $240 adicional
BANORTE	3.58	42.94	69.16	DE $6,000 a $20,000	sin costo de $390 a $504 titular de $304 a Clásica) (sic) a $348 adicional
SCOTIABANK INVERLAT	3.25	38.94	59.41	DE $5,000 a $15,000	sin costo de $300 a $450 titular de $150 a (Clásica) a $225 adicional
INBURSA	2.75	33.00	42.82	$5,000	sin costo Sin costo (EFE Clasica (sic)
Santander	2.42	29.00	45.00	$5,000	sin costo 270 Titular adicional sin costo (Light)
BANCOMER	4.00	47.94	79.02	$3,000	sin costo $200 titular (Azul) $100 adicional
IXE	2.12	25.44	41.25	$10,000	sin costo de $320 titular(Oro) (sic) de $160 adicional
FONACOT	1.63	19.50	30.32	1485*	3.00% Sin costo

SOURCE: Conducef. The rates are given for the axis card of each bank maximum in the contracts with the minimum monthly payment of said accounts, Data as of June 2008 *Minimum monthly salary in geographic zone C.

According to current data (August 2008), the Bank of Mexico determined to increase by 25 basis points the target for the Overnight Interbank Interest Rate, placing it at 8.25%, in order to "anchor" inflation expectations in the medium term.
In July, inflation at an annual rate reached 5.39%, the highest rate in the last four years, mainly due to the increase in prices of agricultural products and fuels.
On June 20 last year, the central bank raised for the first time during the year the funding rate by 25 basis points, from 7.50 to 7.75%, after eight months without changes, due to the increase in external pressures on local inflation.

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A month later, the Bank of Mexico increased rates from 7.75 to 8.0% in order to reinforce medium-term inflation expectations (La Jornada 15/08/08).
The National Banking and Securities Commission (CNBV) indicates that the fees charged by intermediaries during the first quarter of the year totaled 15 billion 431 million pesos, a figure 1.22% higher than that reported in the same period of 2007. (El Universal, August 13, 2008).
In 2007, the profits of banking in Mexico were 69 billion 533 million pesos, where it must be highlighted that net income from commissions on totals represented 27.8% and that for the first quarter of this year it rose to 35.2%.
According to economic theory which states that the active interest rate (the one a bank charges for lending money) depends on three fundamental variables: the so-called "real rate", "inflation", plus a premium for "financial intermediation" which finally represents the profit of banks for "capturing savings" and "lending resources"; evidently this financial intermediation has a lot to do with banking efficiency factors, among which are already included, the "risk" in which a bank incurs when lending savers' money. In this way, the active interest rate is represented mathematically as follows:
Active Interest = real rate + inflation + financial intermediation (bank efficiency, risk).
However, the high cost of financial intermediation currently reflects a high banking inefficiency in its operation and on the other hand shows us that bankers are already including the "effect of greater risk for the recovery of their guarantees".
Without a doubt, the highest cost is reflected in the interest rate charged, which is referenced to the 28-day maturity interbank equilibrium interest rate (TIIE 28 days) and which in practical terms reflects "the cost of government and bank financing; that is, it is the approximate average of the interest rates that banks and government pay to obtain money".
But while that cost varies month to month, currently located at only 8 percent, banks add on average 40 percentage points more to obtain the interest rate they charge cardholders, with the interest they pay rising to up to 40 percent.
It is important to remember that all credit cards charge delinquency interest, which is applied to the outstanding balance and practically doubles the interest rate that the respective credit card normally charges.
In Mexico, around 40 percent of the total income of commercial banks is represented by commissions, a proportion higher than countries such as Brazil, England, France and Spain, nations in which income from commissions represents between 30 and 36 percent.
From the situation mentioned above, it is intended that the Bank of Mexico, as a regulatory entity, resolve all problems and situations through the issuance of "general provisions".
However, this turns out to be excessively omitting by leaving most matters to the subsequent issuance of provisions, since it does not establish the specific criteria for issuing them.
Therefore, and among other consequences, savers are losing value and purchasing power of their assets deposited in said Credit Institutions, since they generally do not perceive as yield the percentage cost of inflation, in addition to the fact that these Credit Institutions achieve a very important differential of interest rates, which has driven up the profits obtained. Hence the importance that the Bank of Mexico and the National Banking and Securities Commission, as well as the other responsible authorities, regulate with all punctuality, on the margins of banking intermediation charged by Credit Institutions. It is important to note that article 24 of the Bank of Mexico Law empowers it to issue provisions that protect the interests of the public. The cited provisions must be of general application

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can refer to one or several types of intermediaries, to certain operations or to certain zones or plazas.
Likewise, the Law of the National Banking and Securities Commission in its article 2 states that "The Commission shall have as its object to supervise and regulate within its competence, financial entities, in order to ensure their stability and correct functioning, as well as to maintain and foster the healthy and balanced development of the financial system as a whole, in protection of the interests of the public." Regarding the (sic) Law of Credit Institutions, its object is to regulate the banking and credit service, the organization and functioning of credit institutions, the activities and operations that they may carry out, their healthy and balanced development, as well as to guarantee the protection of the interests of the public. It should also be mentioned that currently in various countries regulation is being carried out on the charging of commissions by Banking Institutions. The topic has been addressed on other occasions in the Senate of the Republic and statements have been made in that sense, with exhortations to the authorities and institutions. Unfortunately, the results of the exhortations, statements, recommendations and suggestions to the authorities, to the institutions, to the banks and to the cardholders, have not given the expected results, since the problem not only continues, but has increased to levels that have undoubtedly placed users of these cards with lower incomes in our country in serious problems. It is true that certain actions have been carried out such as the elaboration of the "decálogo of good use of the credit card", which undoubtedly has the best of intentions, but it is difficult that it be the integral solution for a problem of this nature. Declarations such as those made by the Bank of Mexico which has expressed: "the authorities and the banks must be alert to prevent such expansion from deriving into excessive vulnerability, both of households and of banking itself" Although the institutional design of the Mexican State prioritizes inflation control through the Bank of Mexico and the supervision of the financial system in the National Banking and Securities Commission, the National Commission for the Protection of Users of Financial Services and the Ministry of Finance and Public Credit, in the real practice of banking policy, the self-regulation of the bankers themselves prevails, even when their behavior differs from the objectives marked by the Constitution. The State must resolve the aspect of the regulation of banking interest rates. The high commissions for banking services and the low returns for savers discourage the use of banking for economic transactions. In Mexico there is no law that regulates the application of these rates. Each bank determines the total annual amount it charges according to the supply and demand they have for cards, which does not happen in other countries where there is regulation and an average rate that cannot be exceeded, in addition to which the replacement is
not charged nor is information on charges hidden. Banking has fundamentally three functions in an economy: it is a savings system, channels financing for the development of productive projects, and is the central axis of the payment system. To precisely regulate that last function, among the responsibilities of the Bank of Mexico is established, in article 2 of its Law:
"The Bank of Mexico shall have the purpose of providing the country's economy with national currency. In the achievement of this purpose, its priority objective shall be to ensure the stability of the purchasing power of said currency. It shall also be the purposes of the Bank to promote the healthy development of the financial system and to promote the good functioning of the payment systems". Likewise, in its article 24, it establishes:
"The Bank of Mexico may issue provisions only when they have the purpose of monetary or exchange regulation, the healthy development of the financial system, the good functioning of the payment system,

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or the protection of the interests of the public. When issuing provisions, the Bank must express the reasons that motivated them".
On the other hand, the Law of Credit Institutions mentions in article 48 the following:
"The interest rates, commissions, prizes, discounts, or other analogous concepts, amounts, terms and other characteristics of active, passive, and service operations, as well as operations with gold, silver and foreign exchange, that credit institutions carry out and the mandatory investment of their required liabilities, shall be subject to what is provided by the Organic Law of the Bank of Mexico, with the purpose of attending to the needs of monetary and credit regulation"... In this way, as a Legislative Power, we must rethink from an alternative approach, the regulation of the financial system, which adapts to the national and international financial reality, protecting and shielding the economy of citizens. For all the above, I submit to the consideration of this Honorable Chamber of Senators, the present initiative with. STATEMENT OF REASONS (Decree published on January 10, 2014) In view of the State's obligation to observe the bases and principles that must prevail in the exercise of the right to access information, as well as the guarantee of protection of personal data, derived from the recent reforms to articles 6 and 16 of the Constitution, respectively, it is pertinent to adapt the current regulatory framework, to give publicity to the sanctions imposed by the National Banking and Securities Commission within the scope of its competence, in order to generate disciplines in the markets it regulates, supervises and sanctions. In the framework of the above, through the present initiative it is proposed to reform the Law of the National Banking and Securities Commission, in order to empower said Commission to disseminate through its Internet portal, the resolutions it issues as a consequence of the substantiation of administrative sanction procedures. It is important to maintain that the name, denomination or corporate name of the offender must be indicated, which does not constitute an act depriving of any right, given the transparency that permeates the diffusion we are concerned with, by requiring the sanctioning authority to also specify the means of defense that the accused has asserted or are susceptible to be filed to that effect. This, in full compliance with what is prescribed by the first and second paragraphs of article 16 of the Constitution. In congruence with the above, reforms in the same sense are proposed in the Law to Regulate Credit Information Societies. In addition to the above, it was decided to include in the reforms proposed to the Law of the National Banking and Securities Commission, those highlighted below:
It is proposed to include in the text of the cited order, the precision that exchange centers and money transmitters are subject to the supervision of the Commission, in view that on August 3, 2011, the "Decree by which various provisions of the General Law of Auxiliary Credit Organizations and Activities are reformed, added and repealed" was published in the Official Journal of the Federation, through which the National Banking and Securities Commission was empowered to supervise exchange centers, money transmitters and unregulated multiple-object financial societies, exclusively regarding compliance with what is provided in article 95 Bis of the General Law of Auxiliary Credit Organizations and Activities, and the provisions emanating from said article in matters of prevention, detection and reporting of acts, omissions or operations that could be located in the assumptions of articles 139, 148 Bis or 400 Bis of the Federal Penal Code. It is intended to add powers to the Commission so that it can elaborate and publish statistics of entities and financial markets, solvency, stability and liquidity indicators, as well as to publish representative samples of databases. The foregoing, provided that the corresponding information does not contain reserved or confidential information. It is proposed to empower the Commission to order corrective measures, regarding various aspects in prudential matters, accounting records and financial statements, as well as in relation to the calculation of the index or level of capitalization. It is planned to expressly incorporate in the powers with which the Commission's Board of Directors is endowed, that consisting of revoking the authorizations of the entities that said collegiate body has granted, in order to give greater legal certainty. It is intended to limit the indelegable powers of the President of the Commission to those that by their importance merit it, being able to exercise the other powers other public servants of said Commission with the object of giving speed to the exercise of such attributes. It is proposed to strengthen the Commission's information exchange regime with foreign financial authorities, in order to have broad powers, being able to provide information protected by confidentiality provisions provided that there is an agreement in which the principle of reciprocity is contemplated. Likewise, it is planned that the Commission itself carry out inspection visits to issuers with securities registered in the National Securities Register or in the case of subsidiaries, to promote better understanding between financial authorities. In consideration of the supervisory powers that our legal system confers on financial authorities, it is not extraordinary that situation in which the same financial entity remains subject to supervision visits at different times within the same year by the public servants of each authority. In this regard, it is convenient to establish in law, a mechanism by
which the different financial authorities seek to program, to the greatest extent possible according to their capabilities, joint visits to the same entity, without this imposing an obstacle to the verification and inspection activities that these authorities have in charge.

It is proposed to include the provisions relating to the self-correction programs to which the financial entities supervised by the Commission may be subject for violations of what is provided in the laws that govern them, in order to recognize the figure that exists in other jurisdictions. These self-correction programs will have the purpose of remedying non-compliance with the laws, provided that such conduct is not considered as serious infractions. The foregoing will generate discipline in the markets, thereby reducing administrative sanction procedures with respect to those more relevant conduct.
Finally, it is proposed to limit the restriction consisting of having Mexican citizenship by birth and not having acquired another nationality, only for the President of the National Banking and Securities Commission; the foregoing, in order to avoid inconsistencies in the application of other laws, particularly with those relating to the requirements applicable to the other members of the Board of Directors of said Commission and to flex it for the case of the Vice Presidents, Head of the Internal Control Body and General Managers.
As in the case of the Law of the National Banking and Securities Commission, it is proposed to include the regulation on self-correction programs in the Law to Regulate Credit Information Societies, in order to have solid and consistent legal frameworks, generating certainty in the application and execution of such programs.
Likewise, in order to give greater certainty in the exercise of the power that the National Banking and Securities Commission currently has in other financial legislations relative to the possibility of reprimanding offenders, it is proposed to establish in the Law to Regulate Credit Information Societies, that when imposing the described sanction, the Commission must consider the personal antecedents of the offender, the seriousness of the conduct, that there are no elements that allow demonstrating that the interests of third parties or of the financial system itself are affected, as well as the existence of mitigating factors. In the same vein, it is also planned to foresee in the Law to Regulate Credit Information Societies, the power of the Commission itself to abstain from imposing the respective sanctions. Now, the referred legal orders will prevent that the described power must be exercised

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As a complement to the strengthening of sanctioning capacities by the National Banking and Securities Commission, which is intended to be achieved with the aforementioned provisions, it is proposed to reinforce the action of the Bank of Mexico in this matter.
This is because the Permanent Constituent endowed the Bank of Mexico, in addition to regulatory powers over exchange, intermediation and financial services, with the attributes of authority necessary to carry out such regulation. This latter attribute cannot be understood without the power to supervise and monitor, directly, the financial entities subject to its regulations. It is for this reason that it is proposed to establish in the Bank of Mexico Law itself, the means through which the Central Bank can verify compliance with these rules and, if applicable, sanction non-compliance more effectively. Likewise, as part of the tasks inherent, already assigned by Law to the Bank of Mexico, to promote the sound development of the financial system, the proper functioning of payment systems and, predominantly, the protection of the interests of the public, it is also proposed to redefine some behaviors of the agents of financial intermediation, the prohibition of which is necessary to establish. As a consequence of the above, the modification of the correlative sanctions is proposed, in order to ensure that they fulfill the double purpose, corrective and dissuasive, proper of a State of Law. In line with what has been proposed above, the catalog of crimes considered serious in the Federal Code of Criminal Procedures is specified. In addition to the above proposals, it is considered important to provide in the Law to Regulate Credit Information Societies the possibility of creating a credit information society as a para-state entity that is part of the financial system, in order to improve the conditions of competition in this sector, which will impart dynamism and promote the creation of value-added products, which will be reflected in the cost of credit. Finally, it is important to highlight that the opening to foreign investment that has been implemented in the Mexican financial system since the beginning of the nineties, has had a positive impact on said system insofar as it has significantly increased the level of capitalization of the same, the competition between the different participants, as well as the innovation in the financial products offered in the market, among other benefits. In this sense, the interaction of international financial systems has increased drastically in the last 20 years. The globalization of financial services has inevitably brought about the consequence that operations carried out by a financial intermediary may violate the state of other intermediaries even when they are governed by different legal orders, due to the correlation of financial markets at the global level. In this context, it is important to highlight that the reforms that have been carried out in recent years on various financial laws and that have allowed the participation of foreign capital in financial intermediaries, reiterate the conviction that the leadership of the State over the financial system is supported by the Law and the powers to
regulate and supervise the intermediaries themselves, and not by the nationality of their capital. Under the same principle, the modifications to the laws and secondary norms have privileged strengthening the prudential and preventive framework over that of corrective measures. It is for this reason that the present reform initiative intends to release the limits on foreign investment in financial entities; for this reason, it is necessary:
I. Reinforce the existing premise in order to establish that in order to participate in financial entities in Mexico, foreign official persons must, in addition to not exercising functions of authority, accredit the independence of their decision-making bodies.
This addition will contribute to guaranteeing that the action of said persons as direct or indirect shareholders of financial entities in Mexico obeys technical reasons and not political objectives.

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II. Explicitly contemplate the exceptions that currently provide the treaties and international agreements of which Mexico is a part, especially with regard to the prudential measures that countries implement when they are facing financial crisis scenarios, especially since such measures necessarily result in benefit for the Mexican subsidiaries of foreign financial entities.
III. Allow the participation of foreign governments when the same represents a minority portion of the social capital of the intermediaries, that is, when it is investments whose objective is only to obtain financial benefits, and the control or effective administration of the financial entity in question is not sought.
Additionally, it is proposed to eliminate the requirement to obtain a favorable resolution from the National Commission of Foreign Investments, so that foreign investment exceeds 49% in credit information societies, securities rating agencies and insurance agents.
With this, it is sought that by releasing foreign investment in these sectors, the development of the activities they carry out will be promoted, by having greater participation and capital to increase the volume of their operations, which would result in better service for the general public.
Finally, the reforms to the Savings for Retirement Systems Law that are proposed, attend to the commitment of the State with the workers of the country as a fundamental premise, so that the present initiative seeks to strengthen the supervisory activity and the regulatory framework that regulates the imposition of administrative sanctions on Participants in the Savings for Retirement Systems. The above, in order that the State safeguards the interests of the workers and that they obtain a pension that satisfies their needs for maintenance and survival. For the above and based on article 71, fraction I, of the Political Constitution of the United Mexican States, I submit to the consideration of the Congress of the Union the following initiative STATEMENT OF REASONS (Decree of March 9, 2018) Based on article 71, fraction I of the Political Constitution of the United Mexican States, I allow myself to submit, through its dignified channel, before that Honorable Assembly, the present Initiative of decree by which the Law to Regulate Financial Technology Institutions is issued and various provisions of the Credit Institutions Law, the Securities Market Law, the General Law of Organizations and Auxiliary Credit Activities, the Law for the Transparency and Ordering of Financial Services, the Law to Regulate Credit Information Societies, the Law for the Protection and Defense of Users of Financial Services, the Law to Regulate Financial Aggregations, the Law of the National Banking and Securities Commission and the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin are reformed, added and repealed. In recent decades, technology has radically transformed the way in which the trade of goods and services is carried out globally. This revolution of innovation, driven by the widespread availability of technology, has had a very important impact on the financial services sector. The impact of technology has transformed the provision of traditional banking and credit services, through innovations that have generated a significant reduction in the use of branches for the provision of financial services. This type of technologies have been developed in recent years in harmony with the legislation applicable to regulated and supervised financial entities, but likewise in this period other technological innovations and business models have emerged that do not have regulation and supervision by the authorities on the operations they carry out with their clients, which makes it necessary to include them within the regulated and supervised sector of the financial system.

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In addition to the above, it is foreseeable to think about new technologies that promote the decentralization of systems such as blockchain technology (Blockchain in English), as well as the proliferation of the collaborative economy and person-to-person financial services, which will modify even more the panorama with respect to the way in which financial services are provided in the coming years. The capacity for expansion of financial services through new technologies is enormous. According to the Fourth Quarterly Statistical Report 2016 prepared by the Federal Institute of Telecommunications, by December 2016 the number of mobile phone subscriptions in Mexico reached 111.7 million, while the number of mobile broadband subscriptions was 74.5 million. In view of the above, the present Initiative has as its object to grant a regulatory space so that innovation through technologies, of financial services, develops and flourishes. The above with the purpose of putting Mexico at the forefront in the development of financial services that are capable of increasing the level of financial inclusion throughout the country and improving the conditions of competition in the Mexican financial system. The initiative proposes to create a new Law that will be called "Law to Regulate Financial Technology Institutions", which has as its object to regulate Financial Technology Institutions (FTIs) and the establishment of conditions for regulated financial entities by this and other financial laws, to develop technological innovations in safe regulatory spaces. With the presentation of the Initiative, the need is recognized that such a dynamic sector as that of technological innovation requires a regulatory framework that allows authorities to mitigate risks and allow its expansion in a competitive environment. It is for this reason that the Law to Regulate Financial Technology Institutions is a law that establishes principles, so that from these, the different competent financial authorities issue secondary regulation according to the dynamism inherent to said sector. The Law to Regulate Financial Technology Institutions is based on the principles of financial inclusion and innovation, consumer protection, preservation of financial stability, promotion of healthy competition and prevention of money laundering and terrorist financing. With the principle of financial inclusion, it is sought to bring financial services closer to people and sectors that have traditionally not been part of the financial system, promoting greater financial education and advice on these new alternatives. Likewise, complementing financial inclusion, is the principle of innovation which seeks to provide tools to increase the use of the mentioned services. The principle of consumer protection has as its objective to protect the client by establishing defense mechanisms and verification of minimum standards, as well as granting regulatory and supervisory powers to financial authorities.
Likewise, guidelines for the protection of personal data are established, as well as the obligation of complete disclosure to clients and investors of the operation model and risk factors that the ITF could represent. With regard to the principle of preservation of financial stability, what is sought is to establish a general framework of authorized and supervised operation to ITFs, imposing on them prudential rules proportional to the risks they represent in different matters, such as those financial, operational, market, technological (cyber-security), corporate governance and accounting rules. Likewise, it is sought that the financial technology market develops with limits and maximum amounts of operations in order to avoid regulatory inequality with other financial sectors, thus seeking a level playing field and healthy and balanced competition. Healthy competition is one of the key factors that is intended to be promoted and at the same time protected, in virtue of the fact that the Financial Technology industry will allow greater diversity and new distribution channels for financial services, as well as the reduction of costs and improvement in the provision of said services. A concern that has been the cause of the creation of standards, controls and regulation for the provision of financial services, both nationally and internationally, has been the risk of money laundering and terrorist financing. It is for this reason that the last mentioned principle intends to

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In addition to the above, it is relevant to mention that the Law to Regulate Financial Technology Institutions is technologically neutral, that is, the technology is indifferent with respect to the service provided.
It is of utmost importance to highlight that the over-regulation of this sector could bring as a consequence an opposite result to the end that this new regulation pursues, potentially damaging the financial market and causing a disincentive in financial inclusion, in addition to creating barriers that could be insurmountable for entrepreneurs, as well as for those who wish to opt to operate with any of the figures recognized in the Law to Regulate Financial Technology Institutions. As a consequence of the above, the Law only provides for a general regulatory framework, that is, it is only intended to establish the bases and a minimum regulation that must govern ITFs, leaving the rest to be regulated in secondary provisions with the objective of having greater flexibility in its regulation, which would allow it to adapt according to the constant dynamism of this sector, Although there must be flexibility in the regulation of ITFs, this should not be interpreted as the existence of regulatory arbitrage since ITFs, according to the Law to regulate Financial Technology Institutions, must comply with the established requirements regarding amounts and limits just as the other entities of the sector comply according to their respective financial laws. However, it is also necessary to emphasize that ITFs must comply with these obligations in a proportional manner to the risks they incur. Now well, once the principles that guide the action of the entities regulated by the Law to Regulate Financial Technology Institutions and that must also be followed by the authorities in the exercise of their powers are established, the Law establishes the regulation for the different types of ITFs. ITFs will be authorized, regulated and supervised entities by financial authorities. To operate as an ITF, the Law to Regulate Financial Technology Institutions establishes that they will require an authorization before the National Banking and Securities Commission, which will be granted prior to the review of the information and documentation mentioned in said Law and prior agreement of the Interinstitutional Committee. Said Committee would be integrated by three key financial authorities, namely, the Secretariat of Finance and Public Credit, the National Banking and Securities Commission and the Bank of Mexico. The Law to Regulate Financial Technology Institutions will recognize two types of ITFs: crowdfunding institutions and electronic payment fund institutions. Crowdfunding institutions (crowdfunding in English) are those platforms that put in direct contact with people interested in participating in debt, equity and co-ownership or royalty schemes. These institutions provide access to new sources of financing to segments of the population that are normally not attended by traditional financial entities, regulating three forms. Crowdfunding debt institutions are those in which the institution puts in direct contact with investors with applicants who require financing,
who, subsequently, will return the resources, generally, with the payment of an interest. Crowdfunding equity institutions are those that facilitate that investors contribute resources, through the institution, to obtain participations in the social capital of corporate applicants that are promoted by this means to subsequently be participants in the profits of said corporate persons. Finally, crowdfunding co-ownership or royalty institutions are those in which investors contribute resources to a project obtaining a participation in a good or right. This figure has been regulated at the international level in countries such as the United States, Canada, China, Spain, Italy, France, the United Kingdom and New Zealand.

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The Law that is proposed to be issued contains the regulation of electronic payment fund institutions, as a consequence of the increase in the use of this payment modality in commerce, since it offers security and acceptance in the businesses that are affiliated.
Regarding this, Peru, Paraguay, Brazil, Colombia, Uruguay, Kenya and the European Union, among other jurisdictions, have regulated electronic payment funds, defining them in similar terms, as the monetary value represented by a credit enforceable against its issuer, stored in an electronic or digital medium, whose value is constant, denominated in the same currency and equivalent to the funds received by the issuer against its delivery. In the regulation proposed in the Law to regulate Financial Technology Institutions, electronic payment fund institutions will carry out services of issuance, administration, reporting and transmission of electronic payment funds (e-money in English). Electronic payment funds shall be understood as the monetary value issued at par against the receipt of legal tender currency, which will serve to make payments and transfers. Likewise, it is proposed that ITFs have the capacity to operate with virtual assets. In this sense, virtual assets are representations of a verifiable digital value, that are not issued or backed by any central bank or financial entity, that is, they do not have legal tender, and despite this, they generate utilities for their exchange due to their acceptance by the public. In recent years, the use of virtual assets, especially "Bitcoin", has increased, as well as its acceptance and value, so the regulation of institutions in which intermediation with these assets has become increasingly pertinent. Additionally, it is proposed that persons who offer in national territory the purchase and sale of virtual assets, remain subject to the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin. Considering that the speed with which technological advances occur does not allow adjusting the premises of legal norms with the adequate opportunity and that many of the companies that develop innovative schemes or means are of recent creation, the Initiative contemplates, in addition to ITFs, the regulation of Novel Models. To operate said models, societies must have a temporary authorization granted by the Competent Supervisory Authority on the matter of innovation, with the purpose of testing their innovative business models based on technology in financial activities currently regulated by some law of the current financial system. With this, it is sought that societies that operate with Novel Models provide their services to a reduced number of clients and for a limited time, which allows experimenting and developing their innovation in the real market in a controlled and supervised manner by the authorities. The authorization of Novel Models is being implemented in several countries, among which the United Kingdom and Singapore deserve special mention, pioneers in creating a figure known in English as Regulatory Sandbox. Additionally, the Initiative contemplates the possibility of granting temporary authorizations to Financial Entities to carry out activities
contemplated in their social object through Novel Models when exceptions to the provisions of a general character applicable to them are necessary In matters of protection of the user of the services offered by ITFs, their supervision will be subject to the powers of the National Commission for the Protection and Defense of Users of Financial Services, so secondary regulation related to the formalization of legal relationships and the resolution of controversies will be issued. Regarding this, the Law for the Protection and Defense of Users of Financial Services is modified and ITFs are included as financial entities in terms of the Law for the Transparency and Ordering of Financial Services. In international experience there are a set of rules and specifications that allow technological applications to communicate with each other. These rules and specifications are called APIs (from its English initials, which means Application Programming Interface or application programming interfaces). The present Initiative proposes that financial entities and ITFs have open APIs, allowing the interconnection of digital financial services as long as there is prior consent of the users, specifically mentioning that this would not be a violation of financial secrecy. It is important to mention that to use the data that is shared through the APIs, the general provisions issued by the competent authority must be complied with.

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The Federal Executive has sought to generate an environment of greater financial inclusion, in which the increase in well-being for the population is promoted, the movement of financial resources and the obtaining of credit and other financial services under conditions convenient for the different sectors of society is incentivized, and competition is promoted, while at the same time the stability and security of the financial system are sought, risks are mitigated, and the consumer is protected. This Initiative continues this same trend and fosters innovation in the financial system so that it becomes a greater engine of growth for the country. Among the National Goals established in the National Development Plan 2013-2018 is "Prosperous Mexico" whose purpose is to promote the sustained growth of productivity, considering that adequate infrastructure and access to strategic inputs can foster competition and allow greater flows of capital and knowledge, in addition to providing favorable conditions for economic development, through a regulation that allows for healthy competition among companies and the design of a modern economic promotion policy focused on generating innovation and growth in strategic sectors. To achieve the above, strategies and lines of action were established, among which are:
maintain the macroeconomic stability of the country, democratize access to financing for projects with growth potential, and guarantee clear rules that incentivize the development of a competitive domestic market.
As has been established throughout this exposition, among the objectives of the Law are the increase in the level of financial inclusion throughout the country, the increase in access to financing, and the improvement of competition conditions in the Mexican financial system, so the Law to Regulate Financial Technology Institutions will be an adequate instrument that will help in the fulfillment of the National Development Plan 2013-2018. For the foregoing and in exercise of the power conferred upon me by Article 71, Section I of the Political Constitution of the United Mexican States, as well as Article 73, Section X of the same instrument, I submit to the consideration of the Honorable Congress of the Union, the following Initiative of:
STATEMENT OF MOTIVES
(Decree of January 24, 2024)
The exercise of the state's ius puniendi, through the capacity to impose administrative sanctions, implies one of the most incisive actions of the Public Administration in the legal sphere of private parties; the administration orders and protects the public interest through the application of a sanction, and this activity takes on particular importance when it is directed at the proper functioning of the organization and public service. The sanctioning power is that faculty of the public administration to impose sanctions through an administrative procedure, understood as the administrative sanction being that harm inflicted on an administrative subject as a consequence of an unlawful conduct, with a repressive purpose, consisting in the deprivation of a good or right, or the imposition of a duty, since the public administration is barred from sanctions consisting in deprivation of liberty. An administrative sanctioning procedure is that mechanism or procedure by which the State, through administrative units, carries out functions of inspection, verification, control, and sanction, with the purpose of determining responsibility or absolving for the probable infringement of the law, or for failing to comply with any obligation related to the sector in which they operate. As a result of said procedure and in attention to the sanctioning faculty, the authority imposes a sanction or fine, which must be distinguished from the word infringement, as they do not mean the same thing; thus, the fine is defined as the monetary sanction imposed for any legal contravention, for the benefit of the State or any official entity authorized to impose it.3 On the other hand, the term infringement is conceived as that act carried out against what is provided in a legal norm or failing to comply with a commitment undertaken.

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The Mexican Financial System is regulated and supervised by various authorities that are in charge of monitoring that actions are taken under applicable regulations and, in case of the commission of any infringement, applying the corresponding sanction; however, flaws of unconstitutionality have arisen due to the lack of legal certainty regarding the time to decide their legal situation. Problem Statement In recent dates, the Supreme Court of Justice of the Nation, as well as the Circuit Collegiate Tribunals through various jurisprudential criteria, declared the unconstitutionality of various legal provisions of different regulatory laws of the National Financial System, considering that they transgress the principle of legal certainty which consists in the right that an institution or financial entity subject to an administrative sanctioning procedure has to exercise its defense and be heard, with due opportunity, within a procedure that establishes a reasonable deadline for the competent authority to resolve, in case, the imposition of a privative act, in consonance with what is mandated by Articles 14 and 16 of the Political Constitution of the United Mexican States. The foregoing, under the argument that, by not clearly and precisely establishing the maximum deadline for the authority to issue and notify the resolution that puts an end to the administrative sanctioning procedure, the guarantee of due process is violated. Conscious of said problem and with the purpose of avoiding the instruction of administrative sanctioning procedures that violate due process to the detriment of the legal certainty of the Financial System, an exhaustive review of all provisions regulating it was carried out. For the above, this Initiative intends to resolve fundamentally the affectation to the principles of legality, legal certainty, and prompt and expeditious justice in the administrative sanctioning procedure provided for in the laws that regulate the National Financial System, by establishing the general scheme of the administrative procedure, identifying each of its stages, which adjust to the essential formalities of the procedure, recognized both by legal doctrine, judicial interpretations supported by our Highest Courts, and adhering to international best practices. An example of this is found in jurisprudential thesis 1a./J. 11/2014 (10a.), Gaceta del Semanario Judicial de la Federación. Book 3, February 2014, Volume I, page 396, which states verbatim:
"RIGHT TO DUE PROCESS. ITS CONTENT.
Within the guarantees of due process there is a "hard core", which must be inexcusably observed in every jurisdictional procedure, and another of guarantees that are applicable in processes that imply an exercise of the State's punitive power. Thus, regarding the "hard core", the guarantees of due process that apply to any procedure of a jurisdictional nature are those that this Supreme Court of Justice of the Nation has identified as essential formalities of the procedure, whose set integrates the "guarantee of hearing", which allow the governed to exercise their defenses before the authorities definitively modify their legal sphere. Regarding this, the Full Tribunal of this Supreme Court of Justice of the Nation, in jurisprudence P./J. 47/95, published in the Semanario Judicial de la Federación and its Gaceta, Ninth Era, Volume II, December 1995, page 133, under the heading: "ESSENTIAL FORMALITIES OF THE PROCEDURE. THOSE THAT GUARANTEE AN ADEQUATE AND TIMELY PRIOR DEFENSE TO THE PRIVATIVE ACT.", held that the essential formalities of the procedure are: (i) the notification of the start of the procedure; (ii) the opportunity to offer and present the evidence on which the defense is based; (iii) the opportunity to argue; and, (iv) a resolution that settles the debated issues and whose challenge has been considered by this First Chamber as part of this formality. Now, the other core is commonly identified with the list of minimum guarantees that every person whose legal sphere intends to be modified through the punitive activity of the State must have, as occurs, for example, with criminal, migratory, tax, or administrative law, where it will be required that the guarantees be made compatible with the specific subject matter of the case. Therefore, within this category of due process guarantees, two species are identified: the first, which corresponds to all people regardless of their condition, nationality, gender, age, etc., among which are, for example, the right to have a lawyer, not to testify against oneself, or to know the cause of the sanctioning procedure; and the second, which is the combination of the minimum list of guarantees with the right to equality before the law, and which protects those people who may find themselves in a situation of disadvantage before the legal system, by belonging to some

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For internal use vulnerable group, for example, the right to notification and consular assistance, the right to have a translator or interpreter, the right of girls and boys to have their detention notified to those who exercise their parental authority and guardianship, among others of the same nature.
Amparo in review 352/2012. October 10, 2012. Five votes of Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Guillermo I. Ortiz Mayagoitia, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Arturo Zaldívar Lelo de Larrea. Secretary: Mario Gerardo Avante Juárez.
Direct Amparo in review 3758/2012. Maple Commercial Finance Corp. May 29, 2013. Five votes of Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Alfredo Gutiérrez Ortiz Mena. Secretary: David García Sarubbi.
Amparo in review 121/2013. June 12, 2013. Five votes of Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Alfredo Gutiérrez Ortiz Mena. Secretary: Cecilia Armengol Alonso.
Amparo in review 150/2013. July 10, 2013. Five votes of Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo. Reporter: Jorge Mario Pardo Rebolledo. Secretary: Mercedes Verónica Sánchez Miguez.
Direct Amparo in review 1009/2013. October 16, 2013. Five votes of Ministers Arturo Zaldívar Lelo de Larrea, José Ramón Cossío Díaz, Alfredo Gutiérrez Ortiz Mena, Olga Sánchez Cordero de García Villegas, and Jorge Mario Pardo Rebolledo, who reserved the right to formulate a concurrent vote. Reporter: José Ramón Cossío Díaz. Secretary: Julio Veredín Sena Velázquez.
Jurisprudential thesis 11/2014 (10a.). Approved by the First Chamber of this High Court, in session of date seven of February two thousand fourteen.” (emphasis added) OBJECT OF THE INITIATIVE This Initiative details in each of the financial laws, the stages of the administrative sanctioning procedure, in the following terms:
a) Expiration of the Sanctioning Faculty.
In the Initiative, the 5-year deadline that the authority has to initiate the administrative sanctioning procedure is resumed, counted from the next business day after which the conduct was carried out or the infringement scenario was updated. This deadline is consistent with the national legal framework applicable to administrative procedures, which establish similar deadlines for the extinction of the authority's sanctioning faculty, in order to contribute to justiciable legal certainty. This deadline may be suspended for up to two years due to the non-existence of the presumed infringer's domicile or due to the filing of some defense mechanism, and it will resume from the date on which the respective authority has knowledge of the domicile or when the definitive resolution corresponding to the defense mechanism invoked is issued. Likewise, it was considered relevant to distinguish the moment in which the computation of said deadline begins regarding continuous and continuing conduct, being in the first case from the moment the conduct ceases and regarding continuing conduct from the consummation of the last conduct. On the other hand, it is provided that the expiration deadline referred to above will be interrupted, that is, it will stop being counted, at the moment of notification to the presumed infringer of the start of the administrative sanctioning procedure. b) Right to hearing and offering of evidence. In the initiative, it is stated that the authorities, when notifying the presumed infringer of the start of the administrative sanctioning procedure, must grant them the right to hearing to manifest what is in their interest and the possibility of offering evidence for a period of ten business days, which may be extended by ten additional business days at the request of the party. c) Presentation of evidence. Once the deadline referred to in the previous paragraph and, in its case, its extension has concluded, the authority will have up to sixty business days to present the evidence that has been offered, which is considered sufficiently broad for its preparation and presentation. d) Period for arguments and closure of instruction. Once the evidence has been presented, the authority will notify the presumed infringer of the opening of the five business day period to formulate arguments. Such notification, being of an intra-procedural nature, will not require being performed personally, attending to the principle of legal interest of the presumed responsible party within the substantiation of the procedure. On the next business day after the expiration of the deadline to formulate arguments, the instruction will be considered closed. e) Deadline for resolution. The authority will have a deadline that will not exceed one hundred eighty business days to issue and notify the resolution that puts an end to the administrative sanctioning procedure, imposing, in its case, the sanctions that result appropriate. The foregoing, provides certainty
and legal security to the presumed infringers and establishes a maximum deadline in which the authority must definitively resolve the existence of the infringement, as well as the imposition of the sanction that, in its case, would be owed due to the reproachable conduct. In this sense, the inclusion of said deadline in the laws that regulate the National Financial System surpasses the jurisprudential interpretations that motivated the presentation of this Initiative. In conclusion, instructions and financial entities will have certainty about the stages of the administrative sanctioning process, the duration of each, and the moment when the authority can no longer continue with legal actions for the imposition of sanctions. Likewise, it guarantees the fundamental rights enshrined in the Political Constitution of the United Mexican States by differentiating each stage of the process, in such a way that they can assert their rights, while at the same time the faculties of the authority are limited so that the legal sphere of the governed is not affected. Finally, the procedures for revocation of authorizations granted by the Ministry of Finance and Public Credit are strengthened, for the constitution, operation, and functioning, as appropriate, of various entities and financial institutions, with the purpose of specifying certain aspects of the procedure and avoiding that such entities could be placed in a state of defenselessness, as well as to provide that, in these procedures, the consultation instances must issue the corresponding opinion at least thirty business days in advance of the expiration of the deadline provided to issue the resolution that puts an end to the revocation procedure. In the event that any of the opinions are issued after the provided deadline, the Ministry of Finance and Public Credit may resolve with the records in the file, without the need to consider the opinion presented out of time.

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REFERENCES
(1) Reformed by Decree published in the Official Journal of the Federation on January 23, 2004 (2) Added by Decree published in the Official Journal of the Federation on January 23, 2004.
(3) Reformed by Decree published in the Official Journal of the Federation on February 1, 2008.
(4) Added by Decree published in the Official Journal of the Federation on February 1, 2008.
(5) Repealed by Decree published in the Official Journal of the Federation on February 1, 2008.
(6) Reformed by Decree published in the Official Journal of the Federation on January 20, 2009.
(7) Added by Decree published in the Official Journal of the Federation on January 20, 2009.
(8) Reformed by Decree published in the Official Journal of the Federation on May 25, 2010.
(9) Added by Decree published in the Official Journal of the Federation on May 25, 2010.
(10) Repealed by Decree published in the Official Journal of the Federation on May 25, 2010.
(11) Reformed by Article Forty-Two of the Decree published in the Official Journal of the Federation on January 10, 2014.
(12) Added by Article Forty-Two of the Decree published in the Official Journal of the Federation on January 10, 2014.
(13) Reformed by Article Six of the Decree published in the Official Journal of the Federation on March 9, 2018.
(14) Reformed by Article Seven of the Decree published in the Official Journal of the Federation on January 24, 2024.
(15) Added by Article Seven of the Decree published in the Official Journal of the Federation on January 24, 2024.

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