Resolution SBS No. 4798-2015: Regulation of Complementary Customer Service Channels of Financial System Companies and Electronic Money Issuers

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 Lima, August 21, 2015 Resolution S.B.S.
No. 4798-2015

The Superintendent of Banking, Insurance and Private Pension Fund Administrators:

CONSIDERING:

That, through Resolution SBS No. 6285-2013, the rules regarding the operation of automated teller machines and correspondent ATMs as complementary channels to the offices of financial system companies and electronic money issuers were approved;

That, this Superintendence has deemed it appropriate to expand the types of complementary customer service channels to achieve greater financial inclusion, as well as to make other clarifications to the aforementioned regulation;

That, it is necessary to modify the Accounting Manual for Financial System Companies to improve the information in Report No. 30, including that corresponding to the new complementary customer service channels referred to above, as well as to modify the Single Text of Administrative Procedures of this Superintendence, to incorporate the authorization procedure for these new channels;

That, it is necessary to modify the Regulation of Electronic Money Issuers, so that they also remit information about their complementary customer service channels through the aforementioned Report No. 30;

That, in order to collect opinions from the general public regarding the proposed modifications to the financial system regulations, the draft resolution was pre-published on the Superintendence's electronic portal, under the provisions of Supreme Decree No. 001-2009-JUS;

Having the approval of the Adjunct Superintendencies of Banking and Microfinance, Risks, Economic Studies and Legal Advice, and;

In exercise of the powers conferred by paragraphs 7, 9 and 13 of Article 349 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance – Law No. 26702 and its modifying regulations;

RESOLVES:

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239

Article First.- Approve the “Regulation of Complementary Customer Service Channels of Financial System Companies and Electronic Money Issuers”, as indicated below:

“REGULATION OF COMPLEMENTARY CUSTOMER SERVICE CHANNELS OF FINANCIAL SYSTEM COMPANIES AND ELECTRONIC MONEY ISSUERS”

CHAPTER I
GENERAL PROVISIONS

Article 1.- Scope
This regulation applies to multiple operations companies and specialized companies indicated in letters A and B of Article 16 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance - Law No. 26702 and its modifying regulations, hereinafter General Law, to the National Bank, to the Agricultural Bank and to Electronic Money Issuers (EEDE), hereinafter companies, as applicable.

Article 2.- Complementary channels
In addition to their customer service offices regulated in the Regulation on Opening, Conversion, Relocation or Closure of Offices and Use of Shared Premises, approved by Resolution SBS No. 4797-2015, companies may establish as complementary channels for customer service, distinct from their offices: 1) Correspondent ATMs; 2) Basic Operation Establishments; and 3) Automated Teller Machines.

In these complementary channels, companies may only perform or disseminate the operations for which they are authorized to carry out, under the terms and conditions established in this regulation.

CHAPTER II
CORRESPONDENT ATMS

Article 3.- Correspondent ATMs
These are service points that operate in fixed or mobile establishments, managed by an operator, whose purpose is to facilitate companies in providing certain financial operations and services for which they are authorized to perform.

A correspondent ATM operator is considered to be a natural or legal person, different from the companies, that operates the correspondent ATMs.

An aggregator of correspondent ATM operators is considered to be a legal person that performs the affiliation and administration of correspondent ATM operators.

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Companies may enter into contracts with operators or with aggregators of correspondent ATM operators to provide, through them, the operations and services authorized by this regulation.

These contracts will not entail the transfer of use, lease, loan for use or usufruct of a space within the establishment run by the operator to the companies, nor will they imply the performance of activities directly by the companies. The activity of a correspondent ATM does not imply any modification to the nature and regime of the operator in its main activity.

Article 4.- Responsibilities of companies
Companies maintain responsibility towards the client or user and before the Superintendence for the provision of services, risk management and regulatory compliance related to the operations that will be provided through correspondent ATMs.

Likewise, they are responsible for adopting the necessary measures to comply with what is established in Article 6 of the Regulation of the Law that Regulates the Basic Characteristics of Electronic Money as an Instrument of Financial Inclusion, approved by Supreme Decree No. 090-2013-EF.

Companies are responsible for complying with the requirements and conditions applicable to operators and to aggregators of correspondent ATM operators, with whom they contract, as indicated in this regulation.

Article 5.- Operations
Through correspondent ATMs, companies may perform the following operations:
a) Collection of credits and other obligations in favor of the companies. b) Allow clients to withdraw money from their accounts. c) Disbursement of personal credits granted by the company. d) Payment of Payment Orders. e) Fund transfers. f) Payment of drafts. g) Receive cash deposits in the client's or third parties' accounts. h) Foreign exchange operations in dollars. i) Opening and closing of basic accounts. j) Collection of services and collections in general. k) Receipt of payments to State entities at the request of users. l) Payment of remittances sent from abroad. m) Opening and closing of simplified electronic money accounts, with the exception of those corresponding to minors. n) Electronic money operations, described in the Regulation of Operations with Electronic Money. o) Delivery and activation of supports issued by the issuer for use of simplified electronic money accounts. p) Marketing of micro-insurance and mass insurance. 1 q) Other services, with the prior consent of this Superintendence, for which they must describe the characteristics of the service to be provided, and attach the risk assessment report prepared by the company's Risk Unit.

1 Literal modified by Resolution SBS No. 1121-2017, published on 18.03.2017.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239

Likewise, within the framework of the general due diligence regime in customer knowledge, and under the responsibility of the companies, through correspondent ATMs they may receive applications from natural persons regarding the opening of checking, time deposit and savings accounts, as well as applications for personal credits, which will be forwarded by the correspondent ATM to the company, in accordance with the procedures agreed upon by both parties.

Companies may conduct advertising and deliver information that facilitates the opening of deposit accounts other than basic accounts, general electronic money accounts, as well as granting credits, subsequently in the company's offices.

The operations carried out through correspondent ATMs must be those that imply automatic credits and/or charges in accounts and/or credit lines, as applicable, without requiring reconciliations or verifications other than those carried out on electronic terminals that are interconnected with the company. In the case of opening basic accounts or simplified electronic money accounts, companies, as applicable, may establish complementary mechanisms as required.

The Superintendence may authorize operations that follow another operational scheme or use other service delivery modalities, if it considers that the controls to be applied allow for adequate management of associated risks; in which case, detailed information about the proposed modality will be provided, and reports prepared by the Risk Unit will be attached.

Companies must establish limits for the provision of services agreed upon through correspondent ATMs, which must be prudent and related to the cash flow of the operator. These limits must be established per person and per type of transaction, if applicable.

Article 6.- Operability of operators and aggregators
Operators and aggregators of correspondent ATM operators may operate with several companies.

Correspondent ATM operators must maintain visible signage to the public in the ATMs' premises, clearly showing their status as a correspondent ATM operator of the company operating through them.

Article 7.- Registration and dissemination
Companies must maintain an updated register of operators and aggregators of correspondent ATM operators, as well as of the correspondent ATMs with which they operate, including: identification data of the operator and the aggregator (if applicable), exact location and address of the correspondent ATMs, geographic area where they operate when mobile, permitted operations, among others.

Companies must have appropriate dissemination means to inform clients and users about the exact location and address and services provided by correspondent ATMs.

At a minimum, they must publish on their website that information from the aforementioned register that allows users to identify the authorized correspondent ATMs through which they can operate.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239

Article 8.- Other correspondent ATM modalities
The Superintendence may authorize other modes of operation of correspondent ATMs with characteristics different from those indicated in Article 3 of this regulation, prior to the evaluation of the controls to be applied for adequate management of associated risks. For this, companies must provide detailed information about the proposed modality, and attach the reports prepared by the Risk Unit.

Article 9.- Management of the correspondent ATM channel
Companies that operate and use the correspondent ATM channel must comply with the following:

1. Companies must develop and implement policies and procedures to select operators and aggregators of correspondent ATM operators with whom they will sign contracts for the provision of such services. For this, they must establish evaluation criteria that consider, among others, the following aspects, whenever applicable:
   a) Financial situation, which includes as a minimum, not having been classified, in their status as debtor, in the categories of Substandard, Doubtful or Loss in the financial system. b) Necessary liquidity of operators to perform cash operations. c) Reputation. d) Adequate physical, technical and human resources infrastructure, as well as the security of the establishments where services will be provided.

The compliance with the requirements defined by the company for the selection of operators and aggregators of correspondent ATM operators must be monitored periodically.

2. The company must provide operational manuals to the natural and/or legal persons who will operate the correspondent ATMs, which are necessary for the adequate provision of services to clients and must include the established limits.

3. The company must provide adequate training to the people involved in the operation of correspondent ATMs to adequately develop the agreed operations and services, which must include at least the aspects referred to the adequate identification and attention of clients, confidentiality of information and bank secrecy.

4. Measures must be implemented to control operational risk and money laundering and terrorist financing risk; likewise, the responsibilities to be assumed by the natural and/or legal persons who will operate the correspondent ATM must be established in the contract.

5. The company must have mechanisms that allow its clientele or users to adequately identify the correspondent ATM, as well as inform about the services they provide through them.

6. Companies must develop correspondent ATM knowledge procedures in their status as providers of the companies, for which the provisions of Article 36 of the Regulation on Money Laundering and Terrorist Financing Risk Management must be taken into account. 1

1 Paragraph incorporated by Resolution SBS No. 2891-2018 of July 25, 2018.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239

Article 10.- Authorization to operate with correspondent ATMs
Companies wishing to obtain authorization to operate with correspondent ATMs must submit an authorization request to this Superintendence, attaching the information indicated below:
a) Copy of the Board of Directors minutes where the decision to sign correspondent ATM contracts is recorded. b) Business plan for the development and implementation of correspondent ATMs, in which the implementation strategy, services to be provided, internal limits to be applied if applicable, initial and projected geographic coverage, criteria for selecting ATMs, technological scheme to be used, among other aspects, must be indicated. c) The policies and procedures applicable to the provision of services through correspondent ATMs. d) Copy of the Risk Unit Report or equivalent containing the assessment of risks associated with the operations to be provided through correspondent ATMs and determination of measures to be taken to control identified risks, in accordance with current regulations. e) Statutory modifications of the company, if pertinent.

The Superintendence's authorization is granted only once.

CHAPTER III
BASIC OPERATION ESTABLISHMENTS

Article 11.- Basic Operation Establishments (BOE)
Basic Operation Establishments (BOE) are fixed or mobile establishments, operated by the company itself, in which only the operations permitted for correspondent ATMs may be performed.

Article 12.- Operations
Through BOEs, companies may perform the operations indicated in the first paragraph of Article 5 of this regulation, as applicable to the operations they are authorized to perform.

Within the framework of the general due diligence regime in customer knowledge, through basic operation establishments, companies may receive applications from natural persons regarding the opening of checking, time deposit and savings accounts, as well as applications for personal credits, which will be forwarded to the company's offices.

Companies may conduct advertising and deliver information that facilitates the opening of deposit accounts other than basic accounts, general electronic money accounts, as well as granting credits, in BOEs, subsequently in their offices.

The operations carried out through BOEs must be those that imply automatic credits and/or charges in accounts and/or credit lines, as applicable, without requiring reconciliations or verifications other than those carried out on electronic terminals that are interconnected with the company. In the case of opening basic accounts or simplified electronic money accounts, companies may establish complementary mechanisms as required.

The Superintendence may authorize operations that follow another operational scheme or use other service delivery modalities, if it considers that the controls to be applied allow for adequate management of associated risks; in which case, detailed information about the proposed modality will be provided, and reports prepared by the Risk Unit will be attached.

Companies must establish limits for the provision of services through BOEs, in accordance with the operations permitted for these establishments. These limits must be established per person and per type of transaction, if applicable.

Companies must have information on the number and amount of transactions carried out, by type of service provided through each BOE, as well as monitor the effective compliance with limits and other prudential measures established as the case may be.

Article 13.- Dissemination
Companies must have appropriate dissemination means to inform clients and users about the exact location and address and services provided by BOEs. At a minimum, they must publish on their website the list of their BOEs, exact location and address, geographic area where they operate when mobile and permitted operations, with their corresponding limits.

Article 14.- Authorization to operate with basic operation establishments.
Companies wishing to obtain authorization to operate with BOEs must submit an authorization request to this Superintendence, which is granted only once, attaching the following information:
a) Copy of the Board of Directors minutes where the decision to operate with basic operation establishments is recorded. b) Business plan for the development and implementation of basic operation establishments, in which the implementation strategy, characteristics of differentiation with offices, services to be provided, internal service provision limits to be applied if applicable, size, personnel and infrastructure of service points, initial and projected geographic coverage, technological scheme to be used, among other aspects, must be indicated. c) The policies and procedures applicable to the provision of services through basic operation establishments. d) Copy of the Risk Unit Report or equivalent containing the assessment of risks associated with the operations to be provided through basic operation establishments and determination of measures to be taken to control identified risks, in accordance with current regulations. e) Statutory modifications of the company, if pertinent.

CHAPTER IV
AUTOMATED TELLER MACHINES

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239

Article 15.- Definition
Automated teller machines are electronic devices that are interconnected with a company, which allows them to provide various operations and services to users through the use of credit, debit or other identification mechanisms that require the use of electronic signatures or similar, according to the procedure established by the company, duly communicated to the client and accepted by them.

CHAPTER V
INFORMATION TO THE SUPERINTENDENCE

Article 16.- Submission of information
Companies will periodically communicate to this Superintendence the number of automated teller machines, correspondent ATMs and basic operation establishments they maintain, as applicable, in accordance with the electronic formats established for this purpose.

FINAL PROVISIONS

First.- Implementation of authorizations
When more than one (1) calendar year has elapsed, counted from the date of the corresponding authorizing resolution, without the respective authorization being implemented, it will become void.

Second.- Significant increase in limits
In the case of companies authorized to open basic operation establishments and correspondent ATMs, if a significant increase occurs in the service provision limits reported to this Superintendence, this must be considered a significant change in the operational environment. Consequently, a risk assessment must be carried out in accordance with Circular No. G-165-2012, regarding the “Risk report for new products or significant changes in the business, operational or IT environment” and be reported to this Superintendence. A “significant increase” is considered any increase greater than 100% of the limit reported to the Superintendence.

Third.- Companies with authorization to operate correspondent ATMs The provisions of Article 10 of this Regulation are not applicable to those companies that, on the date of entry into force of this regulation, have authorization to operate with correspondent ATMs.

Article Second.- Modify Report No. 30 of Chapter V “Complementary Information” of the Accounting Manual for Financial System Companies approved by Resolution SBS No. 895-98 and its modifying and complementary regulations, in accordance with the format shown in the Annex that forms an integral part of this Resolution, and is published on the institutional portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Third.- Incorporate into Article 14 of the “Regulation of Electronic Money Issuers”, approved by Resolution SBS No. 6284-2013, as information that EEDEs must remit to Report No. 30 “Automated Teller Machines, Basic Operation Establishments and Correspondent ATMs” of Chapter V

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 "Complementary Information" of the Accounting Manual for Companies of the Financial System".

Fourth Article.- Incorporate Procedure No. 166 "Authorization to operate with basic operation establishments" and modify Procedure No. 109 "Authorization to operate with correspondent ATMs" of the Single Text of Administrative Procedures of this Superintendency, approved by Resolution SBS No. 3082-2011, whose text is attached to this Resolution, and is published in accordance with what is established in Supreme Decree 004-2008-PCM, Regulation of Law No. 29091. (Institutional portal www.sbs.gob.pe).

Fifth Article.- This resolution shall enter into force on the day following its publication in the Official Gazette "El Peruano", with the exception of the new version of Report No. 30 approved in the second article of this resolution, which shall govern from the information corresponding to December 2015.

Register, communicate and publish

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Administrators of Pension Funds