Resolution 147/2011

BOARD RESOLUTION NO. 147/2011 SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES MODIFICATIONS TO THE REGULATION ON THE TRANSPORT OF MONETARY MATERIAL AND/OR SECURITIES.

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 BCB Statute 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 Securities approved by Board Resolution No. 008/2011 of January 18, 2011. The Report from the Financial Entities Management BCB-GEF-SANA-DSP-INF-2011-275 of November 4, 2011. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-414 of November 9, 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 purpose, it formulates policies of general application in monetary and payment system matters, which are subject to its regulatory competence, all entities of financial intermediation and financial services authorized by the Superintendence of Banks and Financial Entities, currently named 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 ASFI, an Institution that has among its attributions, to supervise natural or legal persons who carry out auxiliary activities of financial intermediation, as well as, incorporate into the scope of its competence, in accordance with the BCB, other persons or entities that carry out financial intermediation activities.

That by virtue of what is established in article 136 of Law No. 734, private organizations destined to 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-2011-275 recommends the modification of articles 4 and 8 of the Regulation on the Transport of Monetary Material and/or Securities (RTMMYV) to differentiate the terms used in the aforementioned regulation and the Payment Services Regulation, to flexibly extend the established period for the custody of monetary material and/or securities for monetary transport companies, and to include services associated with the transport of monetary material and securities.

That according to Report BCB-GAL-SANO-INF-2011-414, the Legal Affairs Management concludes that the proposal for modification to the Regulation on the Transport of Monetary Material and/or Securities 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 regulatory norms of general application, and internal rules, 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 Issuer 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 article 4, paragraph d) of the Regulation on the Transport of Monetary Material and/or Securities, in the following terms:

SAYS: Article 4. (Definitions). d) Financial Intermediation Entity with Own Transport Service of Monetary Material and/or Securities (ESP). Financial intermediation entity with a license granted by ASFI, which organizes its own transport and custody service of monetary material and/or Securities to exclusively cover its needs.

SHOULD SAY: “Article 4. (Definitions). d) Financial Intermediation Entity with Own Transport Service of Monetary Material and/or Securities (ESPT). Financial intermediation entity with a license granted by ASFI, which organizes its own transport and custody service of monetary material and/or Securities to exclusively cover its needs.”

Article 2. Modify article 8 of the Regulation on the Transport of Monetary Material and/or Securities, in the following terms:

SAYS: Article 8. (Services). I. ETMs may provide the following services: a) Transport of Monetary Material and/or Securities. b) Vault custody of Monetary Material and/or Securities that for reasons of schedules, distances, fortuitous cases, or force majeure, could not be delivered at the destination on the day. c) Others related to the authorized activity sector authorized by ASFI in prior consultation with the BCB. II. ESPTs may only provide the service of transport of Monetary Material and/or Securities to exclusively cover their needs.

SHOULD SAY: “Article 8. (Services). I. ETMs may provide the following services: a) Transport of monetary material and/or securities. b) Vault custody of monetary material and/or securities that for reasons of schedules, distances, fortuitous cases, or force majeure, could not be delivered by: i. 24 hours when the transport has origin and destination within the same city. ii. Up to 72 hours when the transport has as destination other cities, intermediate cities, provinces, and the ETM has appropriate environments to perform vault custody. c) Cash processing that includes the selection, classification, cleaning, and counting of banknotes and coins. d) Supply or loading of banknotes to automated teller machines. e) Others related to the activity sector authorized by the BCB. II. The custody activities that ETMs carry out for a period greater than indicated must be implemented through a contract signed with a financial intermediation entity within the framework of the regulations to carry out mandates of financial intermediation of the ASFI. III. ESPTs may only provide the service of transport of Monetary Material and/or Securities to exclusively cover their needs.”

Article 3. The modifications to articles 4 and 8 of the Regulation on the Transport of Monetary Material and/or Securities will enter into force from the date of approval of this Resolution.

Article 4. The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, November 15, 2011

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Marcelo Zabalaga Estrada

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Hugo Dorado Araníbar Ernesto Yáñez Aguilar

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Rolando Marín Ibáñez Gustavo Blacutt Alcalá

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Rafael Boyán Téllez