Resolution SBS No. 1201-2018: Amending the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations Supervised by the SBS for Anti-Money Laundering and Counter-Terrorist Financing Purposes, through UIF-Peru

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239

Lima, March 28, 2018

S.B.S. Resolution
No. 1201-2018

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators

WHEREAS:

That, pursuant to the provisions of Article 3 of Law No. 29038, as amended by Legislative Decree No. 1249, Legislative Decree issuing measures to strengthen the prevention, detection and punishment of money laundering and terrorism, natural and legal persons engaged in the buying and selling of foreign currency and loan and/or pawn businesses are obligated to report to the Financial Intelligence Unit of Peru (UIF-Peru);

That, the Fifth Complementary, Transitory and Final Provision of Law No. 27693, incorporated by Legislative Decree No. 1106, Legislative Decree on the Effective Fight against Money Laundering and other crimes related to illegal mining and organized crime, creates the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS), through the Financial Intelligence Unit of Peru, providing that natural or legal persons engaged in the buying and selling of foreign currency or foreign exchange, as well as credit, loan and pawn businesses, are obligated to register in said registry for the development of their activities, in accordance with the regulations issued by the SBS, and that failure to register generates the cancellation of the operating license or activity authorization by the respective municipality, without prejudice to the SBS ordering the closure of the premises, in accordance with the powers conferred by Law No. 26702;

That, by SBS Resolution No. 6338-2012, the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the SBS, through UIF-Peru, were approved, applicable to natural or legal persons engaged in the buying and selling of foreign currency or foreign exchange and/or loan, credit and pawn businesses, which regulate free registration in said registry prior to the development of said activities, for a period of two years counted from the date of registration, as well as its renewal every two years, all in accordance with the formats established for such purposes; also regulating the infractions and sanctions applicable in case of non-compliance;

That, by SBS Resolution No. 789-2018, the Rule for the prevention of money laundering and financing of terrorism applicable to obligated subjects under the supervision of UIF-Peru was approved, in matters of prevention of money laundering and financing of terrorism, among them, natural persons with business and legal persons dedicated to the activities of buying and selling foreign currency and lending and/or pawn;

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239

That, in accordance with current regulations and taking into consideration that the natural and legal persons under the scope of said rules are developing the activities of buying and selling foreign currency or foreign exchange and lending and/or pawn both in person and electronically, through virtual platforms, it is necessary to make some clarifications to the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the SBS, through UIF-Peru, as well as to the respective formats, approved by SBS Resolution No. 6338-2012, and it is also pertinent to extend the renewal period of registration in said registry, thus facilitating the exercise of said activity;

Having the approval of UIF-Peru and the Deputy Superintendency of Legal Affairs;

In use of the powers conferred by Law No. 29038 and its amending rule and Law No. 26702, in accordance with Law No. 27693 and its amending rules and in accordance with the exception conditions set forth in numeral 3.2 of Article 14 of Supreme Decree No. 001-2009-JUS and its amending rules;

RESOLVES:

Article One.- Amend Articles 1, 2, 3, 5, 7, 8, 9, 10, 13 and 14 of the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the Superintendency of Banking, Insurance and Private Pension Fund Administrators, through the Financial Intelligence Unit of Peru, approved by SBS Resolution No. 6338-2012, which are redrafted with the following text:

"Article 1.- Scope
The present rule is applicable to currency exchange houses and loan and/or pawn businesses, under the supervision of the Superintendency of Banking, Insurance and AFP, through UIF-Peru, in matters of prevention of money laundering and financing of terrorism.

To carry out the activities described, currency exchange houses and loan and/or pawn businesses must register in the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, in accordance with the provisions of the present rule."

"Article 2.- Definitions and abbreviations
Currency exchange houses and loan and/or pawn businesses must consider the following definitions and abbreviations for the application of the present rule:
a) Currency exchange house: natural person with business or legal person dedicated to the buying and selling of foreign currency or foreign exchange, in a: i) in-person manner, in an establishment with a valid operating license for foreign currency exchange issued by the corresponding Municipality, or ii) electronic manner, through a virtual platform, and must have the respective authorization issued by the corresponding Municipality. b) Registry: Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, in which currency exchange houses and/or loan and/or pawn businesses are registered, including those that provide their services electronically, through a virtual platform.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239

c) Loan and/or pawn business: natural person with business or legal person dedicated to granting money loans with own funds in favor of a natural or legal person (client), and may receive as collateral a movable and/or immovable asset, granted by the client or a third party, including collateral on jewelry or other gold or silver objects, as well as gold in bars. The activity is carried out in a: i) in-person manner, in an establishment with a valid operating license to grant loans and/or pawn issued by the corresponding Municipality, or ii) electronic manner, through a virtual platform, and must have the respective authorization issued by the corresponding Municipality. d) SBS: Superintendency of Banking, Insurance and Private Pension Fund Administrators. e) UIF-Peru: Financial Intelligence Unit of Peru, specialized unit of the SBS."

"Article 3.- Registry
The Registry is unique, mandatory and public, and currency exchange houses and loan and/or pawn businesses must register therein. The registry is administered by the SBS through the competent area, using the respective formats, which have the character of sworn declaration. The registration must be prior to the start of their activities and to the communication of designation of the Compliance Officer before UIF-Peru, and is independent of the license or authorization granted by the respective Municipality for its operation and subsequent to the registration in the Public Registries, if applicable."

"Article 5.- Requirements for registration in the Registry For registration in the Registry, currency exchange houses and loan and/or pawn businesses must submit to the SBS, through the respective area, the application for registration in the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, in accordance with Annex No. 1 of the present rule, indicating the information therein."

"Article 7.- Registration
Registration in the Registry is free, subject to evaluation of the information contained in the format of Annex No. 1, and has a duration of seven (7) years, counted from the date of the authoritative resolution of registration. Upon expiration of said period without renewal having been processed within the respective period, in accordance with the provisions of Article 8, the registration expires.

The SBS publishes on its website the list of currency exchange houses and loan and/or pawn businesses with valid registration in the Registry."

"Article 8.- Renewal
The renewal of registration in the Registry must be made within thirty (30) days prior to the expiration date. The renewal process is considered initiated with the submission of the renewal letter in accordance with Annex No. 2 of the present rule.

The renewal will be granted for the period of seven (7) years counted from the expiration.

Currency exchange houses and loan and/or pawn businesses that have not renewed their registration in the Registry within the period provided in the preceding paragraph are automatically excluded from it, without prejudice to the administrative consequences that correspond for exercising the activities of buying and selling foreign currency or foreign exchange and of loan and/or pawn businesses, as applicable, without having renewed their registration in the Registry."

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239

"Article 9.- Observations to the submitted application Currency exchange houses and loan and/or pawn businesses that submit the registration or renewal application without complying with the provisions of Annex No. 1 or 2 of the present rule, as applicable, must rectify them and attend to the requirements regarding information and others demanded by the SBS, within the periods it indicates. After said period without rectification occurring, the corresponding registration or renewal application shall be deemed not presented."

"Article 10.- Updating of Registry information Any variation of the information contained in the Registry, both of general data and of that established in Articles 5 and 6 of the present rule, must be communicated to the SBS, attaching the documents supporting said variation, where applicable, within five (5) days after it has occurred."

"Article 13.- Non-compliance with registration or renewal in the Registry As a result of its supervision work regarding the application of the present rule, the SBS - through the competent area - obtains information on the identification of those currency exchange houses and loan and/or pawn businesses that carry out activities without being registered or without having renewed their registration in the Registry."

"Article 14.- Procedure
Upon verification of non-compliance with registration or renewal in the Registry by currency exchange houses and loan and/or pawn businesses, the SBS - through the competent area - notifies the resolution of closure of premises, which must remain in said state until the registration or renewal in the Registry is regularized."

Article Two.- Repeal Article 4 and Annexes 1, 2, 3 and 4 of the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the Superintendency of Banking, Insurance and Private Pension Fund Administrators, through the Financial Intelligence Unit of Peru, approved by SBS Resolution No. 6338-2012.

Article Three.- Approve the following annexes that form part of the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the Superintendency of Banking, Insurance and Private Pension Fund Administrators, through the Financial Intelligence Unit of Peru, approved by SBS Resolution No. 6338-2012:
Annex No. 1: Application for registration in the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations.
Annex No. 2: Application for renewal of registration in the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations.
The annexes are published on the Institutional Portal - www.sbs.gob.pe - in accordance with the provisions of Supreme Decree No. 001-2009-JUS and its amending rules.

Article Four.- Natural persons with business and legal persons dedicated to the activities of buying and selling foreign currency and lending and/or pawn, who at the date of entry into force of the present resolution are in the process of registration in the

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511) 6309000 Fax: (511) 6309239

Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, must adapt to the provisions of the Rules for the Registry of Companies and Persons Carrying Out Financial or Currency Exchange Operations, supervised in matters of prevention of money laundering and financing of terrorism by the Superintendency of Banking, Insurance and Private Pension Fund Administrators, through the Financial Intelligence Unit of Peru, as amended by the present resolution.

Article Five.- The present Resolution shall enter into force on the day following its publication in the Official Gazette El Peruano.

Register, communicate and publish.