Resolution No. CD-SIBOIF-563-2-DIC3-2008
Dated 03 December 2008

REFORM STANDARD OF ARTICLE TEN OF THE GENERAL STANDARD ON IMPOSITION OF FINES

The Board of Directors of the Superintendency of Banks and Other Financial Institutions,

WHEREAS

That article 171 of Law 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, grants the Board of Directors of the Superintendency of Banks and Other Financial Institutions the power to establish, through general standards, the amounts of fines within the ranges indicated in the aforementioned Law, adapted to the seriousness of the offense;

In exercise of its powers, HAS ISSUED

The following:

REFORM STANDARD OF ARTICLE TEN OF THE GENERAL STANDARD ON IMPOSITION OF FINES Resolution No. CD-SIBOIF-563-2-DIC3-2008

First.- Reform article 10 of the General Standard on Imposition of Fines contained in Resolution No. CD-SIBOIF-410-1-MAR14-2006, published in Gazette Number 80 of 25 April 2006, which shall read as follows:

Art. 10.- Imposition of fines regarding the infringement of money laundering prevention measures.- As indicated in article 164 of the General Law of Banks, with respect to money laundering prevention, supervised financial institutions shall be sanctioned by the Superintendent in accordance with the following:

a. Range:

5,000 to 60,000 fine units.

b. Infractions and applicable amount.

1. When the institution does not have a Money Laundering Prevention Program in accordance with the laws and regulations on the matter.

Amount: 60,000 fine units.

2. When the Money Laundering Prevention Program presents material or significant deficiencies, both in its content and in its execution, the respective sanction shall be applied according to such deficiencies, among which are mentioned:

i) When its implementation or execution is deficient, increasing the institution's risk profile.

Amount: 5,000 to 30,000 fine units.

ii) When there is no Manual of Internal Policies and Procedures or Compliance Manual for money laundering prevention.

Amount: 5,000 to 30,000 fine units

iii) When the Manual of Internal Policies and Procedures or Compliance Manual for money laundering prevention is not duly updated in accordance with the regulations and law on the matter, duly approved by the institution's Board of Directors.

Amount: 5,000 to 30,000 fine units

iv) When, existing the Manual of Internal Policies and Procedures or Compliance Manual for money laundering prevention, it is inadequate or incongruent

with respect to the complexity of its financial products and services, service and business technology or the risk profile of the institution or the market in which it operates.

Amount: 5,000 to 30,000 fine units.

v) When, existing the Manual of Internal Policies and Procedures or Compliance Manual for money laundering prevention, it does not contain specific procedures for:

A) The administration, backup, safeguarding, custody and access to records, files, dossiers and other data, whether physical and/or electronic, that in accordance with the law and regulations for money laundering prevention are subject to retention for the legal term, or that, existing these procedures, they are inadequate or deficient, or are being applied deficiently.

Amount: 5,000 to 30,000 fine units.

B) The prevention and monitoring of this risk through transactions by means of wire or electronic transfers of funds and/or through the purchase or sale of instruments of deposit, or that, existing these procedures, they are inadequate or deficient, or are being applied deficiently.

Amount: 5,000 to 30,000 fine units.

C) The detection, investigation, documentation and reporting of unusual activities, or that, existing these procedures, they are inadequate or deficient, or are being applied deficiently, or the tools used for monitoring accounts and transactions are not in accordance with the complexity and volume of operations of the entity.

Amount: 5,000 to 30,000 fine units.

vi) When the documentation regarding the identification, verification measures and knowledge of the client in the files is incomplete or improper in accordance with the minimum requirements of the regulations on the matter and/or with respect to the "Know Your Customer" policies of the institution itself that denote an inadequate or deficient performance of Due Diligence or Enhanced Due Diligence. The latter is understood, by way of illustration, as all those actions and procedures aimed at complying with the "know your customer" policy.

Amount: 5,000 to 30,000 fine units.

vii) When the obligation to inform the competent authority is not complied with, according to the law on the matter, the reports of systematic communication of cash transactions, in accordance with the information required by the standard for said report.

Amount: 5,000 to 40,000 fine units.

viii) When the reports of systematic communication of cash transactions do not include all the transactions that in accordance with the Law and standard must be submitted or the content of these is not in accordance with the information required by the standard for said reports.

Amount: 5,000 to 40,000 fine units.

ix) When the institution does not have a Compliance Officer duly appointed by its Board of Directors, to whom it must report administratively, organically and functionally, dedicated exclusively to the implementation, training and monitoring of the Money Laundering Prevention Program:

Amount: 5,000 to 30,000 fine units

x) When the Superintendent determines that the Compliance Officer does not meet one, several or all of the following conditions:

A) It is not vested with the proper authority and autonomy, organizational, administrative and functional;

B) It does not have the professional capacity, training and experience in the matter;

C) It does not have adequate personnel with the training and education that this function requires;

D) It does not comply or complies deficiently with the functions that correspond to it in accordance with the regulations on the matter.

Amount: 5,000 to 30,000 fine units.

xi) When the financial, human, technological and material resources assigned by the institution's Board of Directors to carry out the execution of the money laundering prevention program are not consistent with the volume, complexity of its financial products and services, service and business technology or risk profile of the institution or the market in which it operates.

Amount: 5,000 to 30,000 fine units

xii) When it does not have a formal Training Program for money laundering prevention with its proper budgetary allocation for its execution; or if it exists, it is deficient, inadequate or incongruent in relation to the complexity, size or risk profile of the institution or this Program is executed deficiently.

Amount: 5,000 to 20,000 fine units.

xiii) Lack of a Code of Conduct that gathers the policies adopted by the institution's Board of Directors for the prevention of money laundering and other assets, or when it exists, it is inadequate or insufficient.

Amount: 5,000 to 20,000 fine units.

xiv) When the internal audit function is insufficient or deficient in the permanent review of the Program of

money laundering prevention in accordance with the regulations on the matter or with respect to the audit program of the institution itself.

Amount: 5,000 to 20,000 fine units.

xv) For the non-performance or late performance of the external audit to verify the effectiveness and quality of the Money Laundering Prevention Program, in accordance with the regulations on the matter or that having been performed, its results were deficient and inadequate with respect to the results of the inspections carried out by the Superintendency.

Amount: 5,000 to 40,000 fine units.

xvi) For other circumstances, in which due to the deficient implementation of a Money Laundering Prevention Program, the risk profile of the institution is negatively affected.

Amount: 5,000 to 40,000 fine units.

3. When the institution does not comply with the obligation to report to the competent authority, according to the law on the matter, unusual operations or transactions that are suspected of constituting the crime of Money Laundering.

Amount: 20, 000 to 60,000 fine units.

4. The person who holds any of the following categories: manager, officer, compliance officer or any other employee of the institution who discloses or informs the client that their transaction is being analyzed or considered for a possible Suspicious Activity Report or who informs them that such report was filed.

Amount: between four and eight monthly salaries of the person involved in the disclosure according to the aforementioned categories.

5. When it is the person who occupies the position of director who discloses or informs the client that their transaction is being analyzed or

considered for a possible Suspicious Activity Report or who informs them that such report was filed.

Amount: 10,000 to 50,000 fine units.

Second.- This norm shall enter into force upon its notification, without prejudice to its publication in the Official Gazette, La Gaceta.

(f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) A. Cuadra G. (f) (f) Roberto Solórzano Ch. (f) U. Cerna B.

URIEL CERNA BARQUERO
Secretary Board of Directors SIBOIF