Norm Reforming Article 15 of the Norm on Requirements for the Establishment of Banks, Financial Companies, Branches of Foreign Banks, and Representation Offices

Resolution No. CD-SIBOIF-1148-1-ENE14-2020
Dated January 14, 2020

NORM REFORMING ARTICLE 15 OF THE NORM ON THE REQUIREMENTS FOR THE ESTABLISHMENT OF BANKS, FINANCIAL COMPANIES, BRANCHES OF FOREIGN BANKS, AND REPRESENTATION OFFICES

The Board of Directors of the Superintendence of Banks and Other Financial Institutions.

CONSIDERING

I

That Article 14 of Law No. 561, General Law of Banks, Non-Bank Financial Institutions, and Financial Groups, published in La Gaceta, Official Gazette No. 232, on November 30, 2005, contained in Law No. 974, Law of the Nicaraguan Legal Digest of the Banking and Finance Sector, published in La Gaceta, Official Gazette No. 164, on August 27, 2018, and its amendments (Law of the Legal Digest), provides that foreign banks and financial institutions may, with prior authorization from the Superintendent, establish representation offices in Nicaragua.

II

That by Resolution No. CD-SIBOIF-473-1-ABR11-2007, dated April 11, 2007, the "Norm on the Requirements for the Establishment of Banks, Financial Companies, Branches of Foreign Banks, and Representation Offices" was approved, published in La Gaceta, Official Gazette No. 106 on June 6, 2007.

III

That it is necessary to modify Article 15 of the aforementioned norm, in order to establish the contribution that representation offices must make to the Superintendence of Banks and Other Financial Institutions, due to the supervisory activities that fall under its jurisdiction; in accordance with what is established in Article 29 of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, published in La Gaceta No. 196, on October 14, 1999, and its amendments, contained in the Law of the Legal Digest.

IV

That in accordance with the considerations set forth above and based on the powers conferred by Articles 3, numeral 13), and 10, numeral 1) of the aforementioned Law No. 316.

In exercise of its powers,

RESOLVES

CD-SIBOIF-1148-1-ENE14-2020

To issue the following norm,

NORM REFORMING ARTICLE 15 OF THE NORM ON THE REQUIREMENTS FOR THE ESTABLISHMENT OF BANKS, FINANCIAL COMPANIES, BRANCHES OF FOREIGN BANKS, AND REPRESENTATION OFFICES

FIRST: Article 15 of the Norm on the Requirements for the Establishment of Banks, Financial Companies, Branches of Foreign Banks, and Representation Offices, contained in Resolution No. CD-SIBOIF-473-1-ABR11-2007, dated April 11, 2007, published in La Gaceta, Official Gazette No. 106 on June 6, 2007, is hereby amended, which shall read as follows:

"Art. 15. Processing of the application and supervisory cost.- The procedure for processing the application for authorization of a representation office and its supervisory cost shall be governed by the following provisions:

a) Processing of the application: If, upon review of the application, documentation, and information received, it is established that it is incomplete, or if the analysis determines that it is incorrect or that complementary information is required, the Superintendent shall notify the interested parties in writing, who within the period of 30 calendar days following the notification of such situation, must comply with the requirement.

Once the study of the application is concluded, the Superintendent shall resolve the pertinent matters within a period of 60 calendar days counted from the submission of the complete application.

b) Supervisory Cost: In accordance with what is established in Article 29 of the Law of the Superintendence, Representation Offices shall contribute in cash to the budget of the Superintendence up to 1.3 per mille of their credit portfolio and investment assets, calculated based on the annual average of these, observed in the last twelve months prior to the date of formulation of the budget, or at minimum the equivalent in national currency to US$3,600.00 (three thousand six hundred United States dollars) according to the official exchange rate in effect published by the Central Bank of Nicaragua on the date of payment, in both cases, the greater amount resulting. The volume of assets and investments is understood to be the amount of their credit portfolio and investments placed in the name of their represented entity in Nicaragua.

SECOND: The following transitional provisions are established:

a) Foreign banks that, upon the entry into force of this norm, are in the process of applying for authorization to establish representation offices in the country, shall contribute in cash for the first year of operations the amount equivalent in national currency to US$3,600.00, according to the official exchange rate in effect on the date of payment, once authorized by the Superintendent.

b) In the case of representation offices that are currently operating in the country, they shall contribute in accordance with what is established in Article 15 subject to the present reform, starting from the month of January 2020, using the fiscal year 2019 as the calculation base.

THIRD: This norm shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette. (S) Ovidio Reyes R. (S) Illegible (Luis Ángel Montenegro E) (S) Fausto Reyes (S) Illegible (Silvio Moisés Casco Marenco) (S) Illegible (Rafael Ángel Avellán Rivas).

RAFAEL ÁNGEL AVELLÁN RIVAS
Secretary of the Board of Directors SIBOIF