Resolution 059/2012

BOARD RESOLUTION NO. 059/2012
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – MODIFIES THE PAYMENT SERVICES REGULATION.

VIEWED:
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.
The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005 and its subsequent modifications.
The Payment Services Regulation approved by Board Resolution No. 121/2011 of September 27, 2011.
The Report from the Financial Entities Management BCB-GEF-SANA-DSP-INF-2012-127 of May 16, 2012.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-152 of May 18, 2012.

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 policies of general application in monetary and payment system matters, which are subject to its regulatory competence, all financial intermediation and financial service entities authorized by the Superintendency of Banks and Financial Entities, currently known as the Financial System Supervision Authority (ASFI).

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

That the Payment Services Regulation in its article 17, item a), states that the BCB will approve the tariffs applicable to payment instruments and services.

That the Financial Entities Management, through Report BCB-GEF-SANA-DSP-INF-2012-127, establishes the need to specify the BCB’s authority to establish maximum tariffs, commissions, and other charges applicable to the use of payment services and instruments, with the purpose of benefiting financial service users, promoting the use of payment instruments alternative to cash, and improving service provision conditions at an accessible cost.

That according to Report BCB-GAL-SANO-INF-2012-152, the Legal Affairs Management concludes that the proposal to modify the Payment Services Regulation is legally appropriate, as it does not contravene the current legal framework, and it is the competence of the BCB Board of Directors to consider its approval.

That, the BCB Board of Directors in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulatory norms of general application, and internal norms, and is 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, item 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 article 17 of the Payment Services Regulation, in the following terms:

SAYS:
Article 17 (Supervision Activities). The BCB will carry out the following supervision activities:
a) Approve the tariffs applicable to payment instruments and services. b) Process relevant statistical information and publish aggregated information on the payment services provided. c) Request from the ASFI, when deemed necessary, the review of contingency systems associated with payment services, in addition to the periodic reviews carried out by this authority. d) When deemed pertinent, request from the ASFI that it instruct the PSPs (Payment Service Providers) to hire a special external audit of their operations and functioning.

SHOULD SAY:
“Article 17 (Supervision Activities). The BCB will carry out the following supervision activities:
a) Through a Board Resolution, the maximum tariffs, commissions, and other charges applicable to payment instruments and services will be determined. b) Process relevant statistical information and publish aggregated information on the payment services provided. c) Request from the ASFI, when deemed necessary, the review of contingency systems associated with payment services, in addition to the periodic reviews carried out by this authority. d) When deemed pertinent, request from the ASFI that it instruct the PSPs to hire a special external audit of their operations and functioning. If, in the exercise of these activities, the BCB identifies indications of regulatory non-compliance, it will communicate the fact to the ASFI for the corresponding process.”

Article 2.- The modification to article 17 of the Payment Services Regulation will enter into force from its approval.

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

La Paz, May 22, 2012

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Marcelo Zabalaga Estrada

__________________________ __________________________ Hugo Dorado Araníbar Rolando Marín Ibáñez

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Gustavo Blacutt Alcalá