Resolution 060/2012

BOARD RESOLUTION NO. 060/2012 SUBJECT: FINANCIAL ENTITIES MANAGEMENT – MODIFIES THE REGULATION ON ELECTRONIC PAYMENT INSTRUMENTS.

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. The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005, and its subsequent modifications. The Regulation on Electronic Payment Instruments approved by Board Resolution No. 126/2011 of October 4, 2011, and modified by Board Resolution No. 025/2012 of February 23, 2012. The Report from the Financial Entities Management of the BCB-GEF-SANA-DSP-INF-2012-127 dated May 16, 2012. The Report from the Legal Affairs Management of the BCB-GAL-SANO-INF-2012-152 dated 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, utilization, 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 ensure the stability of the internal purchasing power of the national currency; for this purpose, it formulates general application policies in monetary and payment system matters, subject to its regulatory competence, all financial intermediation and financial service entities authorized by the Superintendence of Banks and Financial Entities, currently known as the Financial System Supervisory 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 the 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 to incorporate into its scope of competence, in accordance with the BCB, other persons or entities that carry out financial intermediation activities.

That the Regulation on Electronic Payment Instruments in its article 30, paragraph a), states that the BCB may approve the tariffs, commissions, and other charges applicable to the use of an electronic payment instrument.

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 as alternatives 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 Regulation on Electronic Payment Instruments is legally appropriate, as it does not contravene the current legal framework, and it is 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 rules, and is empowered to issue norms and adopt general decisions 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 THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1. Modify article 30 of the Regulation on Electronic Payment Instruments, as follows:

SAYS:

Article 30. (Oversight). The BCB, through the Financial Entities Management, will carry out oversight of operations carried out with authorized electronic payment instruments, their clearing, and settlement. In this framework, it may: a) Approve the tariffs, commissions, and other charges applicable to the use of an EPI. b) Request the ASFI to review the contingency systems of EPI issuers, as well as special audits of the issuers regarding the functioning of an EPI. If, in the exercise of these duties, the BCB identifies indications of regulatory or operational non-compliance, it will communicate the fact to the supervisory body for the corresponding process.

SHOULD SAY:

“Article 30. (Oversight). The BCB will carry out oversight of operations carried out with authorized electronic payment instruments, their clearing, and settlement. In this framework, it may: a) By Board Resolution, determine the maximum tariffs, commissions, and other charges applicable to EPIs. b) Request the ASFI to review the contingency systems of EPI issuers, as well as special audits of the issuers regarding the functioning of an EPI. If, in the exercise of these duties, 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 30 of the Regulation on Electronic Payment Instruments 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

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Hugo Dorado Araníbar Rolando Marín Ibáñez

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Gustavo Blacutt Alcalá