RESOLUTION No. CD-SIBOIF-612-3-ENE27-2010
Dated 27 January 2010

REFORM STANDARD TO THE "STANDARD FOR THE MANAGEMENT OF PREVENTION OF MONEY LAUNDERING, GOODS OR ASSETS RISKS; AND TERRORISM FINANCING."

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

WHEREAS

SOLE

That based on and in exercise of the power granted by article 3, numerals 3 and 13, and article 10, numeral 7, of Law 316: "Law of the Superintendency of Banks and Other Financial Institutions", and its reforms.

HAS ISSUED

The following,

REFORM STANDARD TO THE "STANDARD FOR THE MANAGEMENT OF PREVENTION OF MONEY LAUNDERING, GOODS OR ASSETS RISKS; AND TERRORISM FINANCING."

Resolution No. CD-SIBOIF-612-3-ENE27-2010

First: Reform the articles: 4 (literals "b", "c" and "d"), 6 (literal "b"), 7 (first paragraph and literal "f"), 9 (literal "e", numeral "i"), 10 (literals "e", "f", "h" "i"), 11 (literals "d" and "f"), 12 (literal "f", numeral "i"), 14 (literal "b", numeral "ii"), 15 (literals "b" and "c" numeral "i"), 16 (literals "c" and "o"), 21 (literal "a", numerals "i" and "iv" and literal "b", numeral "i"), 22 (literal "b", numeral "i"), 28 (literal "c"), 32 (literal "a", numeral "i"), 39 (literals "a" and "c"), 49 (literal "f"), 50 (literal "a"), 53 (literal "h"), 54 (literal "e"), 58 (literals "a", "b" and "c"), 62 (literal "b", numeral "ii"), 63 (literals "b", "h", "i" "j" and "k"), 64 (literal "d"), 66 (literals "c" and "d"), 67 (literal "b", numerals "i", "ii" and "v", literal "c" and literal "d"), 69 (literal "d", literal "e" numeral "iii", literals "h" and "i"), 72 (literals "b" and "f"), 76 (literal "c"), 77 (literal "c"), 79 (literal "b"), 80 and 81 (literal "a") of the "STANDARD FOR THE MANAGEMENT OF PREVENTION OF MONEY LAUNDERING, GOODS OR ASSETS RISKS; AND TERRORISM FINANCING" (PLD/FT Standard); which shall read as follows:

Art. 4.- Prevention Program or Comprehensive System for the Prevention and Management of Money Laundering, Goods or Assets Risks; and Terrorism Financing (SIPAR LD/FT)

b) The SIPAR LD/FT must include: the policies, procedures and internal controls expressed in its respective Manual for the Prevention of Money Laundering, Goods or Assets Risks; and Terrorism Financing, hereinafter PLD/FT Manual; PLD/FT Risk Matrices periodically updated; monitoring system; and operational plans; all of which must comply with and adjust, to the extent applicable, to the national legal framework, including the international conventions on the matter to which Nicaragua is a party; as well as the resolutions, instructions and guidelines of the SIBOIF; to the codes of conduct, guides, corporate mandates, audit recommendations, evaluations and periodic self-evaluations, among others; that are related to the prevention of LD/FT risks in the Financial System. Best practices and international standards constitute guidelines and references that must be taken into account to strengthen the SIPAR LD/FT.

c) The policies, procedures, internal controls, weightings, criteria and variables for determining the LD/FT risk levels and their rating matrix for each of these risks must be duly documented in the PLD/FT Manual.

d) The intensity of the policies, procedures, internal controls, tasks and measures that each Supervised Entity decides to establish in its SIPAR LD/FT shall be subject to its LD/FT risk level rated as high, medium or low in all areas of its businesses and activities, to that of its clients and to the size of the entity; and they are of mandatory and strict compliance for the same. The SIPAR LD/FT of each Supervised Entity is considered an extension of this Standard, and its non-compliance shall be subject to the same regime of sanctions and/or administrative measures on the LD/FT matter provided in the Laws and Standards of the Superintendency.

Art. 6.- Responsibility of the Board of Directors

b) Approve the SIPAR LD/FT with its respective PLD/FT Manual which must be autonomous, comprehensive, complete, updated and which identifies or mentions the articles of the legal, regulatory provisions that the policy and/or procedure addresses and/or of the best practices on which they are based; and its Annual Operational Plan PLD/FT, hereinafter referred to as POA PLD/FT; as well as instruct and monitor compliance with them.

Art. 7.- Integration of the SIPAR LD/FT

The SIPAR LD/FT is composed of the following six fundamental pillars:

f) Specific human, technological and financial resources that guarantee the effective implementation of the SIPAR LD/FT.

Art. 9.- Identification

e) For the purposes of the client identification process, the Supervised Entity must have forms, physical or electronic, that contain and collect at least the following requirements:

i.- Full name of the client, the type and number of the legal, official, valid, reliable and indubitable identification document in accordance with the laws on the matter, the client's signature, address and telephone of the client or of the person who physically carries out the transaction or business relationship. In the case of

significant variation in the signature, the Supervised Entity must apply update forms or signature acknowledgment declaration.

Art. 10.- Required Documents

The Supervised Entity, when initiating a business relationship with a client and without prejudice to other Standards of the Superintendency and Internal Regulations and Policies of each Entity, in the application of the DDC policy on Prevention LD/FT must require the following documents, as applicable in each case:

e) Document proving the power, mandate or authority of representation that one person has with respect to another, natural or legal, to open and manage accounts, have drawing signature, contract or carry out the operation, transaction or procedure before the Supervised Entity; or Certification of the Minutes of the Board of Directors or the Directory in which such authority is demonstrated in the case of Companies or Legal Persons.

f) REPEALED.

h) Certifications and/or Licenses and/or Permits, or equivalent documents, valid and issued by the competent authorities and/or public registries, according to the activity to which the client is dedicated, and according to whether there is an authority that regulates, registers and/or authorizes said activity.

i) Document, Identification Card or updated RUC Number (Single Taxpayer Registry) for legal persons or equivalent document of the corresponding country for legal persons not domiciled in Nicaragua, in accordance with the law and regulations on the matter.

j) Certification of the Minutes where the members of the current Board of Directors of the legal person are recorded, at the time of carrying out the operation with the Supervised Entity. In this case, the identification, with an official, legal and indubitable document, of the natural person accredited as representative shall also be required.

Art. 11.- Verification

The DDC must include policies, procedures and requirements to verify, before or during the course of establishing the usual business relationship, by means of legal, reliable and indubitable documents and other pertinent and trustworthy information and sources; the real existence, identity, representation, domicile, legal capacity, corporate purpose, purpose of the operation and origin of funds to be used. For occasional clients who are non-recurring, non-permanent and low risk LD/FT, or other persons involved such as managers, the Supervised Entity must at least verify their identity. In the verification process, the Supervised Entity must at a minimum:

d) Verify the existence of the activity of new clients that are legal persons, to prevent front activities. When dealing with clients domiciled abroad, the provisions of Article 16, literal "d" of this Standard apply.

f) Banks and financial institutions must implement policies and procedures to verify the information of the new client endorsee of securities, in the following cases:

i.- Time Deposit Certificates that in accordance with the law on the matter and the respective internal regulations are issued as a Negotiable Instrument with nominative character, in which case for change of owner the non-objection of the issuing bank of the document shall always be required in writing.

Art. 12.- Comprehensive Client Profile (PIC)

The Supervised Entity must structure, adopt and keep updated a "Comprehensive Client Profile" (PIC) that it shall fill out for its usual clients (natural or legal persons, national or foreign) with which it establishes contractual business relationships; including their co-holders, representatives and signatories. Each supervised industry, at the guild level, may structure its own PIC Format, taking as a reference those proposed in Annex 2 of this Standard, and in which at a minimum the information provided by the client itself must be included, indicated in the following letters "a" and "b".

f) The initial PIC and its updates must, in addition, meet the following guidelines:

i.- Be signed by the client, by the official who fills it out and reviews it, and by the official who authorizes it. In the event of a significant change in the signature, the Supervised Entity must apply update formats or a declaration of signature acknowledgment.

Art. 14.- Standard CDD

b) The Supervised Entity must apply a differentiated or tiered CDD in terms of intensifying or simplifying it with respect to the standard CDD, depending on the variation in the risk level of clients or the commercial relationship in accordance with updates to its matrix; it must consider the changes that occur, among others, in the following circumstances:

ii.- The geographic location, jurisdiction, or country of origin of the client, and the origin of the funds to be used.

Art. 15.- Enhanced CDD

b) Without prejudice to those that may additionally be included and qualified in these categories in accordance with the ML/TF risk qualification matrices of each Supervised Entity, or as instructed by another authority with competence in the matter, or according to the best international ML/TF prevention practices; ML/TF risk factors must be classified, at a minimum, as follows: 1) By Clients; 2) By Products, and/or Services, and/or Accounts; 3) By Distribution Channels; and 4) By Countries, Jurisdictions and/or Geographic Areas.

c) For the purposes of this Standard and to which an enhanced CDD must be applied, the following are classified as High Risk:

i.- High Risk Clients:

i.b.- Natural persons who, individually or jointly, maintain in the Supervised Entity average balances at the end of each month and for a consecutive period of six months, amounts in

national currency or any other, equal to or greater than Two Hundred Thousand United States Dollars (US$ 200,000.00). This benchmark applies to accounts under any type of business modality, including passive, active, or trust operations, or that in any way involve monthly movements accumulated in said amount, whether in debits or withdrawals, or in credits or deposits.

i.d.- Politically Exposed Persons (PEP), nationals and foreigners, including close family members, associates, and close collaborators of such persons.

i.m.- Clients that are companies, businesses, societies, institutions, or organizations that offer the public high, significant, strange, or disproportionate profits or royalties for contracting their services and/or products and that do not correspond to those normally offered in the respective market segment; and/or that offer products and/or services at prices significantly far below those existing in the market; and/or that engage in ostentatiously misleading advertising.

Art. 16.- Enhanced CDD Measures

For clients, products, distribution channels, and geographic areas classified as high ML/TF risk, the Supervised Entity must apply more exhaustive or rigorous procedures and controls with respect to the standard CDD. In addition to the measures provided for in articles 8 to 13, inclusive, of this Standard, as applicable; the following must be applied at a minimum:

c) Carry out on-site verifications to verify the actual existence and physical establishment of the client's activity, in order to prevent front activities and corroborate the consistency between the infrastructure, physical appearance, and nature of the business and/or activity to which the client is dedicated, with the level of economic activity, income, annual sales, and transactional profile declared by the client in its PIC. When clients are domiciled abroad, the Supervised Entity, in substitution of this on-site verification, must apply the following special measures:

i.- Corroborate the following data: exact residential address of the residence and/or headquarters or main office or parent company, telephone, fax, PBX, post office box, page or website, electronic address, and advertising.

ii.- Request a statement from the bank abroad where the client has its main deposit account.

iii.- Request a statement and/or licenses and/or permits from the foreign authority where the client carries out its main activity or business, provided such authority exists.

o) All information obtained in the course of applying the enhanced CDD must be documented in the respective Client File in accordance with article 13 of this Standard.

Art. 21.- "Know Your Electronic Funds Transfers" Policy

Superintendency of Banks and Other Financial Institutions

REPUBLIC OF NICARAGUA - CENTRAL AMERICA

a) In the case of national or international Electronic Funds Transfers and Remittances or Sending of Money, whether habitual or occasional; the Supervised Entity when acting as ordering party, intermediary, or beneficiary, must:

i.- Include in the electronic funds transfer forms, in the corresponding automated system, and in related messages connected through the payment chain, the exact, precise, and valid information about the sender (name, type and number of identification, address, telephone, and account number). This requirement must be met at least in the first and last link of the payment chain, as applicable.

iv.- When it comes to family remittances coming from abroad, banks must keep records of the name of the ordering party and the country of origin from which the remittance comes, as well as the data of the beneficiary (name, type and number of identification, and address).

b) The Supervised Entity must maintain an automated system for extracting data relating to all transactions involving fund transfers or internal and external payment orders; that facilitates their monitoring. The Supervised Entity must not execute transfers without prior registration. The information to be registered in each transaction carried out and transmitted by the Originating or Beneficiary financial institution, as applicable, shall be at least the following:

i.- Name, identification number, address and telephone of the person originating the payment order or transfer, and the type of transaction.

Art. 22.- "Know Your Consignment Instrument Buyers" Policy

b) The information to be registered in each transaction of sale of Consignment Instruments shall be at least the following:

i.- Name, identification number, address and telephone of the person managing the transaction. The Supervised Entity shall seek to obtain this same information about any other person for the account or benefit of whom the transaction is carried out.

Art. 28.- Determination of suspicion and obligation to file a Suspicious Operation Report (ROS)

c) Likewise, the ROS must be filed:

i.- When the Supervised Entity cannot comply with the enhanced DDC.

Managua, Nicaragua

SIBOIF Building - Km. 7 South Road

PBX Telephone: 2265-1555 P.O. Box 788

web: www.siboif.gob.ni

Email: correo@siboif.gob.ni

ii.- When in the process of scrutiny, requesting information from the customer for the justification and analysis of the transactions, operations or activities detected from the implementation of monitoring procedures and systems; the Supervised Entity could thereby directly or indirectly warn said customer that they are being subject to analysis for a possible ROS. In this case the process of scrutiny and requesting information from the customer must also be discontinued.

iii.- When it concerns customers whose actual movements and balances in accounts and/or in the business relationship with the Supervised Entity are not consistent with the expected activity according to the Comprehensive Customer Profile (PIC); and/or that are not related to the nature and size of the business or occupation of the customer.

iv.- When the Supervised Entity cannot determine the origin of the funds to be used in the accounts and/or in the business relationship.

Art. 32.- Exceptions to the RTE

a) The Supervised Entity, in accordance with policies approved by its Board of Directors, may exempt certain customers from the RTE, provided that the following conditions are met:

i. That the customer is not included in the list of High-Risk Customers provided for in article 15, letter "c", item "i" of this Regulation.

Art. 39.- Composition of the ML/TF Prevention Committee

The Board of Directors of the Supervised Entity shall establish the LD/FT Prevention Committee, by resolution recorded in Minutes, which shall be composed and shall function in accordance with the following conditions:

a) With at least two members of the Board of Directors, and with other officers not provided for in literal "b" of this article.

c) In its sessions, the LD/FT Prevention Committee may give participation to any officer of the Supervised Entity, as a guest, and shall have the quorum it decides internally, provided that the two members of the Board of Directors who compose it are present.

Art. 49.- Temporary or interim replacement

f) The Finance Companies may request the non-objection of the Superintendent, so that their Alternate LD/FT Prevention Administrator may have assigned tasks other than PLD/FT, provided that this does not represent an obstacle to the effective exercise of the alternate role.

Art. 50.- Removal

a) Any removal, separation or assignment to another position of the LD/FT Prevention Administrator, or of their Alternate, or of the LD/FT Prevention Coordinator in the case of a Financial Group, must be approved by the Board of Directors of the Supervised Entity by resolution supported in Minutes. Prior to the adoption and

execution of the decision of the Board of Directors, the Supervised Entity must submit it to the consideration of the Superintendent for non-objection, indicating the reasons that justify such measure. The Superintendent may request a report from the affected officer, who must submit it within a period no greater than five business days. The Superintendent, by reasoned resolution and within a period no greater than fifteen business days counted from when the complete information on the situation is available, shall determine what is pertinent. In the case of resignation of the officer, it shall be sufficient for the Supervised Entity to inform the Superintendent thereof within a period no greater than three business days counted from said resignation.

Art. 53.- Minimum Elements of the Program

The Training Program must contain, at a minimum, the following elements:

h) Specialized technical training in PLD/FT directed to the LD/FT Prevention Administrator, their Alternate and their Administrative Support Structure, at least once a year, in the country or abroad, in accordance with best practices and taught by professionals accredited as specialists in the PLD/FT subject. This training is without prejudice to that which each Supervised Entity must internally provide and/or multiply in a general manner through its own personnel previously trained on the subject.

Art. 54.- Statistics and Records on Training

Each Supervised Entity must maintain updated statistics, records, controls and supporting documents on the application and development of its Training Program, all of which must be kept for a minimum period of five years, particularly the following information:

e) Record in the employment file of each employee, that they received, read and understood the main aspects of the PLD/FT Manual of the respective Supervised Entity; and also, in the case of a new employee, record that they received the induction and awareness provided for in literal "c" of article 53 of this Norm.

Art. 58.- Minimum Audit Functions

The performance of the Independent Audit of the SIPAR LD/FT must be based on the risks inherent to the most significant and highest LD/FT risk activities of the Supervised Entity, must be carried out through personnel with due technical skills and adequately trained on these risks; and at a minimum and to the extent applicable according to the industry to which it belongs, must comply with the following functions:

a) Internal Audit Functions: The Internal Audit program related to the SIPAR LD/F, its scope, approach and frequency, must be based on an LD/FT Risk Matrix that Internal Audit must prepare and update annually. The audit procedures and techniques used by the Internal Audit Unit for the review of LD/FT risks must be contained clearly and expressly indicated in the respective Internal Audit Manual and must first conform to the provisions of this Norm, to the related Norms provided that these do not oppose this one, and other instructions that

the Superintendent may issue, and complementarily with the provisions established in generally accepted auditing standards and in the international standards for internal auditing.

The Internal Audit Unit within its Annual Plan referred to the subject of the SIPAR LD/FT, shall evaluate and review, at a minimum, the aspects indicated below, including in its audit reports the results and recommendations that add value to the PLD/FT Program, and of which it must provide a copy to the LD/FT Prevention Committee, and to the Audit Committee, and to the LD/FT Prevention Administrator.

b) External Audit Functions: The SIPAR LD/FT must be audited at least annually by an External Auditor or Firm of External Auditors, independent from the Supervised Entity, that is duly registered with the Superintendency. For the execution of this External Audit, the Entity must guarantee that the following is carried out:

vi.- From the External Audit report on the SIPAR LD/FT, also referred to in the Norm on External Audit; a copy must be provided to the LD/FT Prevention Committee, to the Audit Committee, and to the LD/FT Prevention Administrator of the Supervised Entity.

Art. 62.- Applicability of the PLD/FT Norm in the Insurance Market

b) With respect to this Norm, Insurance Intermediaries, whether individual brokers, brokerage firms, brokerage companies, agents, agencies and subagents; are only obligated to:

ii.- Receive ongoing training on the subject of LD/FT prevention, which must include the obligation to attend the training sessions to which they are summoned by the Insurance and/or Reinsurance companies with which they have business relationships.

Art. 63.- Exceptions and/or Particularities

The following exceptions and/or particularities apply to Insurance and/or Reinsurance companies, and other companies operating in the Insurance Market provided for in special legislation:

b) They are not obligated to establish the LD/FT Prevention Committee, in which case the following particularities apply:

i.- The functions of the LD/FT Prevention Committee provided for in article 40 of this Norm must be assumed, as decided by the Supervised Entity itself, by its Audit Committee, or by its Risk Committee, or by its Board of Directors.

ii.- The Minute Book of the matters known and resolved regarding PLD/FT may be the same one kept for its other matters by the Audit Committee, or the Risk Committee, or the Board of Directors, as the case may be assuming the functions of the LD/FT Prevention Committee.

iii.- The following may not participate as members or as secretaries of the LD/FT Prevention Committee or of the organizational structure that performs said functions: the General Manager, the Principal Executive, the PLD/FT Administrator and its Alternate, of the Supervised Entity.

iv.- When it is the Board of Directors of the Supervised Entity that assumes the functions of the LD/FT Prevention Committee, the quarterly report provided for in numeral "vii", literal "a", of
article 40 of this Norm shall not apply to it, in which case, the LD/FT Prevention Administrator, in addition to
its monthly report, must render a consolidated annual report to the Board of Directors with the data referred to in said provision, which in turn shall comply with article 6, literal "t", of this Norm.

h) In the application of article 12, literal "f", of this Norm, the request, signing, delivery and updating of the PIC may be carried out by electronic means, and the Supervised Entity must take the measures necessary to provide security and reliability to the information entered, in correspondence with article 25 of this Norm.

i) In addition to the PIC for natural person clients and for legal person clients, in accordance with article 12, literals "a" and "b", of this Norm, the Supervised Entity shall have a PIC for the final beneficiaries of policies. When the client and/or beneficiary is a minor, a PIC shall also be structured for their representative, guardian, executor or attorney-in-fact. The PIC of the beneficiary of an insurance policy shall not be mandatory when dealing with natural persons who are not classified by this Norm as "High Risk".

j) Each client shall have a single PIC and a single File, regardless of the products or lines of insurance they contract, without prejudice to the updates that must be made in accordance with article 12, literal "e", of this Norm.

k) The tools and/or systems for the maintenance and periodic updating of information, and for the monitoring and early detection of unusual and/or suspicious operations, may be electronic or manual according to the technological resources available to each entity operating in the Insurance Market; provided that said tools allow the tasks to be carried out permanently, effectively, in a timely manner and with specialization in PLD/FT.

Art. 64.- Subsequent Identification and Verification

d) The application of article 11, literal "d", of this Norm, the Supervised Entity may develop it through and/or supported by the appraisal inspections carried out by authorized experts, provided that they are with a PLD/FT approach and leaving the respective support in the Client's File.

Art. 65.- Intensified DDC

Without prejudice to the provisions of this Norm in its general part for intensified DDC, all operators of the Insurance Market:

a) Must gather additional information on the client according to their risk profile in the following situations:

i.- Bearer Insurance Policies, which require payment to the bearer, or in cases where the rights to receive benefits or payments under the policy could be endorsed to other persons without the knowledge or authorization of the Insurance Company.

ii.- Agreements, loans, or sales on or of the benefits under life insurance policies to other persons or companies that will be paid after the death of the insured. These policies or arrangements must be considered equivalent to endorsable policies under the previous paragraph. In these cases, the counterparty or buyer of the benefits and the beneficiaries thereof must be identified and verified.

b) They must, in addition to the information indicated for the standard DDC and for the intensified DDC in the general part of this Norm, as applicable; gather the following information for High Risk Clients in the Insurance Market:

i.- Form of payment of premiums.

ii.- Related policies.

iii.- Claims history.

Art. 66.- Simplified DDC

c) For the final beneficiaries of policies, who are natural persons and who are not classified by this Norm as "High Risk", it shall be sufficient to take due note of their full name, and of the number and type of legal, official, valid, reliable and indubitable identity document in accordance with the laws on the matter; keeping a photocopy thereof after comparison with the original.

d) For the final beneficiaries of policies that are Entities Supervised by the Superintendency or state or municipal entities of Nicaragua, it will be sufficient to take due note of the full name of the representative and their number and type of legal, official, valid, reliable and indubitable identity document in accordance with the relevant laws; keeping a photocopy thereof previously compared with the original.

Art. 67.- Relationship of the Insurance and/or Reinsurance company with Insurance intermediaries.

b) Insurance and/or Reinsurance companies, and other companies operating in the Insurance Market provided for in special legislation:

i.- They are primarily and ultimately responsible for implementing their own SIPAR LD/FT, even when the contracting of policies with the client is done through Insurance intermediaries, without prejudice to the responsibilities of the latter established in this chapter.

ii.- They must develop a strict "Know your Insurance intermediary" policy, which must be recorded in the respective PLD/FT Manual of each Insurance and/or Reinsurance company.

v.- They must inform their Insurance intermediaries of the criteria they use to determine and apply differentiated DDC policies, including the additional requirements that, based on their evaluations and LD/FT risk matrices, they implement in their intensified DDC policies.

c) Insurance intermediaries, in all their modalities, will be responsible for obtaining from clients the legal documentation required by this Norm regarding standard DDC and simplified DDC, both for new policies and for renewals. If, in the opinion of the Insurance intermediary, the documentation is complete, they must send it to the respective Insurance and/or Reinsurance company, in physical or scanned form and within a period not exceeding three days of having received it. If the Insurance intermediary has doubts about the client's information, they may make the respective inquiries. As long as the client's documentation is not complete, the Insurance and/or Reinsurance company may not issue a new policy or renew existing ones.

d) In the case of intensified DDC, Insurance and/or Reinsurance companies, even when Insurance intermediaries in all their modalities intervene, will be the only ones responsible for obtaining from clients the additional information required by this Norm and their own policies and matrices. The development of this policy may be delegated to the Intermediaries by prior agreement, but without this constituting an evasion of the responsibility that falls exclusively on the Insurance and/or Reinsurance companies. The foregoing applies both to new policies and to renewals. As long as the client's documentation is not complete, the Insurance and/or Reinsurance company may not issue a new policy or renew those already in force.

Art. 69.- Exceptions and/or Particularities

The following exceptions and/or particularities apply to companies operating in the Securities Market:

d) They are not obliged to establish the LD/FT Prevention Committee, in which case the following particularities apply:

ii.- The Minute Book of matters known and resolved regarding PLD/FT may be the same one kept for its other matters by the Audit Committee or the Risk Committee or the Board of Directors, as the case may be, assuming the functions of the LD/FT Prevention Committee.

iv.- When it is the Board of Directors of the Supervised Entity that assumes the functions of the LD/FT Prevention Committee, the quarterly report provided for in numeral "vii", literal "a", of
article 40 of this Norm will not apply to it, in which case, the LD/FT Prevention Administrator, in addition to
their monthly report, must submit a consolidated annual report to the Board of Directors with the data referred to in said provision, which in turn will comply with article 6, literal "t", of the this Norm.

e) At the formal request of the Supervised Entity, the Superintendent may authorize that the functions of the LD/FT Prevention Administrator fall to an officer who simultaneously holds another position within the same entity, provided that the following requirements are met:

iii.- That this other position and functions do not represent an obstacle to the effective exercise of their work as LD/FT Prevention Administrator. The Stockbroker may not be LD/FT Prevention Administrator or Alternate.

h) Stock Exchanges must: document, file and record a note of the origin of the funds with which their clients have acquired or intend to acquire negotiable securities traded on the Exchange, whether physical or dematerialized, including the bank account numbers of the respective transactions.

i) The tools and/or systems for the maintenance and periodic updating of information, and for the monitoring and early detection of unusual and/or suspicious operations, may be electronic or manual according to the technological resources available to each entity operating in the Securities Market; provided that such tools allow the tasks to be carried out permanently, effectively, timely and specialized in PLD/FT.

Art. 72.- Exceptions and/or Particularities

The following exceptions and/or particularities apply to General Deposit Warehouses:

b) They are not obligated to establish the LD/FT Prevention Committee, in which case the following particularities apply:

ii.- The Book of Minutes of the matters known and resolved regarding PLD/FT may be the same one kept for its other matters by the Audit Committee or the Risk Committee or the Board of Directors, as it is assuming the functions of the LD/FT Prevention Committee.

iii.- The General Manager, the Principal Executive, the PLD/FT Administrator and his Alternate, of the Supervised Entity, may not participate as members or as secretaries of the LD/FT Prevention Committee or of the organizational structure that performs said functions.

iv.- When it is the Board of Directors of the Supervised Entity that assumes the functions of the LD/FT Prevention Committee, the quarterly report provided for in numeral “vii”, literal “a”, of
article 40 of this Norm shall not apply to it, in which case, the LD/FT Prevention Administrator, in addition to
his monthly report, must render a consolidated annual report to the Board of Directors with the data referred to in said provision, which in turn shall comply with article 6, literal “t”, of this Norm.

f) The tools and/or systems for the maintenance and periodic updating of information, and for the monitoring and early detection of unusual and/or suspicious operations, may be electronic or manual according to the technological resources available to each entity operating in the General Deposit Warehouses Market; provided that said tools allow the tasks to be carried out permanently, effectively, timely and in a specialized manner in PLD/FT.

Art. 76.- Exceptions and Particularities

For the Representative Offices of Foreign Financial Entities, the following exceptions and particularities are established:

c) The tools and/or systems for the maintenance and periodic updating of information, and for the monitoring and early detection of unusual and/or suspicious operations, may be electronic or manual according to the technological resources available to each Representative Office; provided that said tools allow the tasks to be carried out permanently, effectively, timely and in a specialized manner in PLD/FT.

Art. 77. – “Second Floor” Banks

For the so-called “Second Floor” Banks, which are those supervised institutions that are authorized and dedicated to raising funds through loans from international development financial institutions; the qualification of “Second Floor” Bank shall be granted by the Superintendency, for which the following exceptional treatment is established:

said tools allow the tasks to be carried out permanently, effectively, timely and in a specialized manner in PLD/FT.

Art. 79.- Exceptions

a) Special Regime Financial Companies are exempt from applying the provisions provided for the LD/FT Prevention Committee; but they must have their LD/FT Risk Administrator under the same circumstances provided in this Norm for the Insurance, Securities and Warehouses Markets; and they may likewise, optionally, establish and provide an Administrative Support Structure for said Administrator.

b) The tools and/or systems for the maintenance and periodic updating of information, and for the monitoring and early detection of unusual and/or suspicious operations, may be electronic or manual according to the technological resources available to each Special Regime Company; provided that said tools allow the tasks to be carried out permanently, effectively, timely and in a specialized manner in PLD/FT.

Art. 80.- Powers of the Superintendent

Without prejudice to the legal powers inherent to the position, the Superintendent with respect to this Norm is empowered to:

a) Review, update, modify and/or render without effect the Annexes of this Norm, as well as include others, as deemed necessary to strengthen its supervisory work in the prevention of LD/FT risks.

b) Order field inspections and follow-ups of findings regarding compliance with this Norm.

c) Require whatever information is necessary to determine compliance with this Norm.

d) Instruct specific measures for compliance with this Norm.

e) Grant, in a particular manner and based on duly supported justifiable reasons, deadlines and extensions for compliance with specific tasks contained in this Norm.

f) Impose effective and proportional sanctions upon findings of non-compliance, omissions and/or weaknesses in the application of this Norm.

Art. 81.- Gradualism for the application of some particular provisions of this Norm

a) The following deadlines are established for the application of the provisions of this Norm set forth below, as applicable to each Supervised Entity:

Articles	Regulated Matter	Deadline

6 (“g”)
LD/FT Prevention Committee
3 months, counted from the entry into force of the Norm PLD/FT.
6 (“f”), 46 and 49 (“d”)
Administrative Support Structure, and the
Alternate of the LD/FT Prevention
Administrator
3 months, counted from the entry into force of the Norm PLD/FT.
Annex 5
Automated Remittance of RTE
3 months, counted from the entry into force of the Norm PLD/FT.
4 (“b”)
SIPAR LD/FT Manual
3 months, counted from the entry into force of the PLD/FT Standard.
8 (subsection "i") and 24
LD/FT Risk Matrices
Until 31
December 2009.
In the case of
Insurance and/or
Reinsurance companies, until 30 June
2010.
6 ("p") and 11 ("ñ")
Implementation of Specialized Systems for monitoring and for technological risk management.
Until 31
December 2009.
In the case of
Insurance and/or
Reinsurance companies, until 30 June
2010.
16 ("ñ", "ii")
Intensified DDC application for clients existing on the date of entry into force of the PLD/FT Standard.
Until 30 June
2010.
6 ("ñ"), 12 ("h"), 26 ("e"),
44 ("c") and Chapter I of
Title III
Application of SIPAR LD/FT at the level of the Local Financial Group.
Until 31
December 2009.
In the case of
Insurance and/or
Reinsurance companies, until 30 June
2010.

Superintendency of Banks and Other Financial Institutions

REPUBLIC OF NICARAGUA / CENTRAL AMERICA

Second: These reforms must be integrated into a single consolidated text of the entire PLD/FT Standard, and whose official version will be published on the website of the Superintendency of Banks and Other Financial Institutions, without prejudice to its physical edition.

Third: These reforms will enter into force as of their publication in La Gaceta, Official Gazette.

(f) A. Rosales B. (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moisés Casco Marenco) (f) U. Cerna B.

URIEL CERNA BARQUERO
Secretary Board of Directors SIBOIF

Managua, Nicaragua

SIBOIF Building - Km. 7 Carretera Sur

Telephone PBX: 2265-1555 P.O. Box 788

web: www.siboif.gob.ni

Email: correo@siboif.gob.ni