Resolution Amending Articles 6, 8, and 14 of the Non-Banking Correspondents Regulation

Resolution No. CD-SIBOIF-912-2-OCT20-2015
Dated October 20, 2015

NORM REFORMING ARTICLES 6, 8, AND 14 OF THE REGULATION ON NON-BANKING CORRESPONDENTS

The Board of Directors of the Superintendence of Banks and Other Financial Institutions.

CONSIDERING

I

That on March 28, 2014, the Regulation on Non-Banking Correspondents, contained in Resolution No. CD-SIBOIF-827-1-MAR28-2014, was approved and published in La Gaceta, Official Gazette No. 74, of April 24, 2014, which aims to establish the minimum requirements that financial institutions must meet to operate through non-banking correspondents (CNB); as well as to regulate, among other aspects, the services they may provide and the responsibilities in providing these services.

II

That CNBs are alternative means or channels that allow banking entities to provide financial services, while simultaneously facilitating user access to them, thereby promoting financial inclusion and the banking of their clients.

III

That for the above reason, it is necessary to establish regulations aimed at preserving this means of providing financial services, promoting free competition among banking entities that intend to use these channels, and ensuring security for users regarding the CNB's capacity to satisfy the services required by them.

IV

That in accordance with the considerations set forth above, the cited legal provisions, and based on what is established in Article 4, Article 10, numeral 1, and the final part of Law 316, Law of the Superintendence of Banks and Other Financial Institutions, and its amendments.

In exercise of its powers,

HAS ISSUED

The following,

Resolution No. CD-SIBOIF-912-2-OCT20-2015
NORM REFORMING ARTICLES 6, 8, AND 14 OF THE REGULATION ON NON-BANKING CORRESPONDENTS

FIRST: Articles 6, 8, and 14 of the Regulation on Non-Banking Correspondents, contained in Resolution No. CD-SIBOIF-827-1-MAR28-2014, published in La Gaceta, Official Gazette No. 74, of April 24, 2014, are hereby amended, which shall read as follows:

“Article 6. Requirements.- Financial institutions may contract natural or legal persons whose legal regime or corporate purpose does not prevent them from acting as CNBs, for which they must ensure that these parties meet the following aspects:
a) That they are legally authorized in the country to conduct commerce; b) That they have a good reputation, solvency, and suitability in their community; and c) That they do not operate as CNBs for another financial institution; in the contrary case, the institution intending to operate with the CNB must require it to decide with which entity it will continue to operate. If the CNB decides to operate with the new financial institution, the first contracting entity must conclude its contractual relationship as soon as it is notified by the CNB, in which case, the term and procedure to settle operations must be agreed upon.”

“Article 8. Minimum content of the contract.- The contracts that financial institutions sign with CNBs must contain the following minimum aspects:
a) Identification of the contracting parties. b) The explicit indication of the full responsibility of the financial institution towards the client, for the services or operations carried out through the CNB, in accordance with the terms established in the preceding Article 4. c) The services to be contracted with the CNB. d) The commissions to be paid to the CNB for the services provided and the method of payment. e) The valid channels and procedures for communication, transmission of instructions, or resolution of inquiries between the parties, based on the contracted services. f) The following minimum obligations for the CNB:
1) Identify themselves to the public as CNBs, specifying the services authorized to be provided on behalf of the financial institution.
2) Provide services according to the establishment's own schedule.
3) Comply with the operational manual provided by the financial institution.
4) Adhere to the internal controls and procedures established by the financial institution to manage risks associated with the services to be provided, particularly risks related to money laundering and/or terrorist financing, and risks inherent to the handling of cash, if applicable; in accordance with the institution's internal policies.
5) Maintain the confidentiality of information identifying the financial institution's clients who conduct transactions at their establishment.
6) Deliver to clients the receipt of the transaction performed, which must be issued by the electronic terminal supplied to them. Such receipt must include, at least, the date, time, type, and amount of the transaction, the operation reference number, as well as the annotation indicated in Article 4 of this regulation.
7) Preserve and safeguard the electronic terminals and other equipment provided by the financial institution.
8) Inform the financial institution about any communication failure that prevents transactions from being carried out online.
g) The obligation of the financial institution to provide training to CNB personnel for the provision of the agreed services. h) The grounds for contract termination. i) Any other information related to the characteristics and/or restrictions and/or limitations of the services that the CNB will provide.

In the aforementioned contracts, clauses that restrict the CNB's freedom to terminate the contract in advance when they decide, unilaterally, to operate with another financial institution, may not be included; only terms and procedures for settling operations may be established.”

“Article 14. Transitional.- Financial institutions that, upon the entry into force of this regulation, are operating through the same CNB, must require it to decide with which of them it will continue to operate. The financial institution with which operations end must agree with the CNB on the terms and procedures to settle operations.”

SECOND.- This regulation shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette. (f) S. Rosales (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B.

(f) illegible (Silvio Moisés Casco Marenco) (f) illegible (Freddy José Blandón Argeñal) (f) A. Morgan Pérez. Secretary Ad Hoc.

URIEL CERNA BARQUERO
Secretary of the Board of Directors SIBOIF