Resolution 037/2011

BOARD RESOLUTION No. 037/2011
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – MODIFIES THE REGULATION ON THE TRANSPORT OF MONETARY MATERIAL AND/OR VALUES.

HAVING SEEN:
The Political Constitution of the State approved by referendum on January 25, 2009, and promulgated on February 7, 2009.
Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).
Law No. 1488 of May 5, 2004 on Banks and Financial Entities and its subsequent modifications.
Law No. 734 of April 8, 1985 Organic Law of the National Police.
The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005 and its subsequent modifications.
The Regulation on the Transport of Monetary Material and/or Values approved by Board Resolution No. 008/2011 of January 18, 2011.
The Report from the Financial Entities Management BCB-GEF-SANA-DSP-INF-2011-84 of April 6, 2011.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-120 of April 8, 2011.

CONSIDERING:
That the Political Constitution of the State establishes, in its article 328, that it is the responsibility of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, to regulate the payment system.

That pursuant to article 331 of the Political Constitution of the State, financial intermediation activities, the provision of financial services, and any other activity related to the handling, use, and investment of savings are of public interest and can only be exercised with prior authorization from the State, in accordance with the Law.

That Law No. 1670 provides in its articles 2, 3, and 30 that the BCB's objective is to procure the stability of the internal purchasing power of the national currency; for this compliance, it formulates general application policies in monetary and payment system matters, which are subject to its regulatory competence, all financial intermediation entities and financial services authorized by the Superintendence of Banks and Financial Entities, currently known as the Financial System Supervision Authority (ASFI).

That Law No. 1488 in its articles 4 and 154, paragraphs 4 and 6, determines that financial intermediation and auxiliary financial services activities will be carried out by financial entities authorized by ASFI, an Institution that has among its attributions, among others, to supervise natural or legal persons who carry out auxiliary financial intermediation activities, as well as, incorporate into its scope of competence, in accordance with the BCB, other persons or entities that carry out financial intermediation activities.

That pursuant to article 136 of Law No. 734, private organizations destined for investigation and private security can only be constituted and function with prior authorization from the General Command of the National Police, ratified by resolution of the Ministry of the Interior, currently the Ministry of Government.

That the Financial Entities Management, through Report BCB-GEF-SANA-DSP-INF-2011-84, recommends the modification of Article 7 of the Regulation on the Transport of Monetary Material and/or Values regarding the requirements for constitution and obtaining of license or non-objection, specifically concerning the risk qualifications of the insurance and reinsurance entities contracted by the transport company.

That according to Report BCB-GAL-SANO-INF-2011-120, the Legal Affairs Management concludes that the proposal to modify the Regulation on the Transport of Monetary Material and/or Values is legally appropriate, as it does not contravene the current legal framework, being the competence of the BCB Board to consider its approval.

That the BCB Board, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized general application regulations, and internal norms, being empowered to issue norms and adopt general decisions that may be necessary for the fulfillment of the functions, competencies, and powers assigned by Law to the Issuing Entity, as established in articles 44 and 54 paragraph O) of Law No. 1670 and articles 9, 11, and 24 of the BCB Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1. Modify the second point of paragraph c) of Article 7 of the Regulation on the Transport of Monetary Material and/or Values, in the following terms:

SAYS:
Article 7. (Minimum requirements for constitution and obtaining of license or non-objection). The ASFI will determine the requirements for the constitution and obtaining of license or non-objection under specific regulation, considering at least the following aspects:
a) Minimum capital amount for MTMs. b) Legal form of organization of MTMs. c) Operational requirements:

• Operating authorization for the transport of Monetary Material and/or Values granted by the General Command of the Bolivian Police according to specific regulation, ratified by the Ministry of Government.
• Insurance against business risks contracted with a triple A rated insurance entity and reinsured with an internationally rated triple A reinsurance entity.
• Contingency plans and procedures to guarantee service continuity.
  d) Administrative requirements
• Have an Internal Operations Regulation that includes the description of the transport process of Monetary Material and/or Values in all its stages, indicating the precise moment when they begin and end, contingency procedures, rights, obligations, and responsibilities of service users, and procedure for the determination, modification, and dissemination of tariffs for MTMs.

SHOULD SAY:
“Article 7. (Minimum requirements for constitution and obtaining of license or non-objection). The ASFI will determine the requirements for the constitution and obtaining of license or non-objection under specific regulation, considering at least the following aspects:
a) Minimum capital amount for MTMs. b) Legal form of organization of MTMs. c) Operational requirements:

• Operating authorization for the transport of Monetary Material and/or Values granted by the General Command of the Bolivian Police according to specific regulation, ratified by the Ministry of Government.
• Insurance against business risks contracted with an insurance entity authorized to operate in Bolivia, whose risk rating is at least double A or its equivalent, and that has reinsurance as required in the regulation of the Authority for Supervision and Control of Pensions and Insurance.
• Contingency plans and procedures to guarantee service continuity.
  d) Administrative requirements
• Have an Internal Operations Regulation that includes the description of the transport process of Monetary Material and/or Values in all its stages, indicating the precise moment when they begin and end, contingency procedures, rights, obligations, and responsibilities of service users, and procedure for the determination, modification, and dissemination of tariffs for MTMs.”

Article 2. The modification to Article 7 of the Regulation on the Transport of Monetary Material and/or Values will enter into force from the date of approval of this Resolution.

Article 3. The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, April 12, 2011

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Marcelo Zabalaga Estrada

______________________ _______________________ Ernesto Yáñez Aguilar Rolando Marín Ibáñez

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Hugo Dorado Araníbar Gustavo Blacutt Alcalá Rafael Boyán Téllez