Securities carriers: Adjustments

2017 - YEAR OF RENEWABLE ENERGIES

COMMUNICATION “A” 6218
07/04/2017

TO FINANCIAL INSTITUTIONS,
TO EXCHANGE HOUSES, AGENCIES AND OFFICES,
TO COOPERATIVE CREDIT UNIONS (LAW 26.173),
TO SECURITIES CARRIERS:

Ref.: Circular
RUNOR 1 - 1280

“Securities carriers”. Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

“1. Replace the rules on “Securities carriers” with those contained in the annex that is part of this communication.

2. Establish that securities carriers (TV) that, as of the effective date of this communication, are authorized by the Central Bank of the Argentine Republic shall be included in the “Registry of securities carriers” without the need to carry out any additional procedure.

3. Replace the second paragraph of point 1.1. of the rules on “Minimum security measures in financial institutions” with the following:

“When for operational reasons financial institutions require to store securities and/or keep them in custody outside their own vaults, they must arrange the pertinent precautions for the contracting of Securities Transport Service Provider companies (PSTV) that, in the vaults they will use for such purposes, fully comply with these rules. This requirement shall be considered fulfilled when the financial institutions have a favorable report from the Security Management in Financial Institutions on the compliance with such requirements by the PSTV in question.

When those vaults do not comply with all of the aforementioned requirements, the financial institutions must inform that department of the security measures that the PSTV in question still needs to comply with, and may use them for a maximum period of up to 12 months from the date of notification to this Institution.”

4. Replace point 2.2.15. of the rules on “Complementary services of financial activity and permitted activities” with the following:

“2.2.15. Transport and/or custody of cash and securities, which includes the service of transporting correspondence and documentation of a financial nature of the entities and/or their clients. Associated security service for premises of financial institutions.”

Finally, we inform you that we will subsequently send you the pages that, in replacement of those previously provided, should be incorporated into the rules on “Securities carriers”, “Minimum security measures in financial institutions” and “Complementary services of financial activity and permitted activities”.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Issuance Manager of Rules

Agustín Torcassi
Deputy General Manager of Rules

ANNEX

B.C.R.A. “Securities carriers”
Annex to
Com. “A”
6218

• Index -

Section 1. General provisions.

1.1. Scope.

1.2. Compliance criteria.

Section 2. Registration in the “Registry of securities carriers”.

Section 3. Conditions to operate.

3.1. Prevention of money laundering and terrorist financing.

3.2. Transparency.

3.3. Operations and services.

Section 4. Reporting regimes.

Section 5. Non-compliances.

Section 1. General provisions.

1.1. Scope.

It comprises legal persons that perform the activity of land transport of securities –Securities Carriers (TV)–. Within said definition are understood to be included the Securities Transport Service Provider companies (PSTV) and the Own Securities Carriers of financial institutions (TVP). For these purposes, securities shall be considered to be money –legal tender banknotes and coins, and foreign banknotes and coins– and precious metals in good delivery bar or coin form.

1.1.1. Securities Transport Service Provider.

It is a legally constituted legal person whose activity is the provision of the land transport service of securities. This service consists of the physical transfer of securities of a third party provided by itself and/or through subcontracting, in the latter case the liability of the carrier not being limited.

Additionally, the corporate purpose may contemplate the provision of the following services, which may only be provided within the framework of securities transport:

1.1.1.1. Storage.

It consists of the safekeeping of money of a third party, and an equivalent quantity and quality must be delivered at the time of return.

1.1.1.2. Custody of securities.

It consists of the safekeeping of a third party's securities, and the same securities received must be delivered at the time of return.

This activity may not be carried out jointly with the provision of the safe deposit box rental service.

1.1.1.3. Counting and classification of money.

It consists of the task carried out to determine the amount of money broken down by denomination and/or condition, for the purposes of its recording and presentation in the means used for its containment and safekeeping.

This activity may be carried out jointly with hoarding or autonomously.

1.1.2. Own Securities Transport Company.

This refers to the area organized within financial institutions to perform the securities transport service.

1.2. Compliance criteria.

1.2.1. Only TV registered in the "Registry of securities transport companies" administered by the Central Bank of the Republic

Argentina (BCRA) and disseminated by the Superintendency of Financial and Exchange Institutions (SEFyC) may provide the securities transport service.

1.2.2. Inclusion in the list of TV registered in the aforementioned registry and compliance with these provisions do not prevent TV from also having to comply with the rules and other requirements demanded by other competent authorities in the matter.

1.2.3. It shall be the responsibility of financial and exchange institutions to verify the registration of TV in the "Registry of securities transport companies".

Section 2. Registration in the "Registry of securities transport companies".

TV must submit the registration application by means of a note signed by the legal representative or by a person authorized with sufficient power for such purpose, addressed to the SEFyC.

In the case of a PSTV, the information and documentation indicated below must also be attached:

2.1. Copy of the bylaws or social contract –with all its amendments– with evidence of its registration by the competent corporate control authority in the Public Registry of the corresponding jurisdiction.

When the shareholders or equivalents are companies incorporated in the country covered by Law 19.550 or abroad, the shareholders or equivalents holding 5% or more of the capital or votes of said companies must also be identified. If companies of that type in turn participate in the capital of these, the same and successive procedure must be followed until the identification of the natural persons who are the final beneficiaries.

At the request of the SEFyC, whether of a general or particular nature, the same information must be provided with respect to other types of legal persons.

2.2. Regarding the promoters, founders, partners, associates or shareholders, directors, members of the supervisory body and general manager or whoever performs their functions: criminal record certificates issued by the National Registry of Recidivism within 5 (five) days of the date of their submission to this Institution. In addition, in the case of natural persons with real domicile abroad, the equivalent certificate issued by the competent governmental authority of the country where they reside must be submitted.

2.3. If it has already closed its first fiscal year, a copy of the last annual general balance sheet with an external auditor's report and certification from the corresponding professional council. In the case of a PSTV for which a full fiscal year has not elapsed, it must submit to the BCRA a statement of financial position or declaration of assets with certification by an independent public accountant with a signature legalized by the corresponding professional council.

2.4. Detailed description of the services to be provided.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

2.5. The following forms with their data integrated:

FORM I

DATA OF THE SECURITIES TRANSPORT SERVICE PROVIDER

NAME OF THE LEGAL PERSON:
UNIQUE TAX IDENTIFICATION KEY (CUIT):
LEGAL DOMICILE
Street and No.:
Locality:
Province:
Postal code:
Telephone:
E-mail:
REGISTERED OFFICE
Street and No.:
Locality:
Province:
Postal code:
Telephone:
E-mail:
Place and date:

Legal representative/attorney
Signature and clarification

FORM II

LIST OF PARTNERS, ASSOCIATES AND/OR SHAREHOLDERS HOLDING 5% OR MORE OF THE TOTAL SOCIAL CAPITAL AND/OR VOTES OF THE SECURITIES TRANSPORT SERVICE PROVIDER
Subscribed capital: $	Number of shares:	Votes:	Information as of / /
Legal person:
CUIT/ CUIL/CDI	Names and sur- names	Real domicile (street, No., locality, Province)	Legal domicile (street, No., locality, Province)	Shareholding		Date of Registration	Date of Deregistration
				Capital %	Votes %

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Place and date:

Legal representative/attorney
Signature and printed name

FORM III

COMPOSITION OF THE GOVERNING BODY OF THE VALUABLES TRANSPORT SERVICE PROVIDER
Company:						Information as of / /
CUIT/CUIL/CDI	Names and surnames	Actual address (street, No., locality, Province)	Legal address (street, No., locality, Province)	Position	Date of Registration	Date of Deregistration

Place and date:

Legal representative/attorney
Signature and printed name

FORM IV

COMPOSITION OF THE AUDIT BODY OF THE PSTV AND SENIOR PERSONNEL
Company:						Information as of / /
CUIT/CUIL/CDI	Names and surnames	Actual address (street, No., locality, Province)	Legal address (street, No., locality, Province)	Position	Date of Registration	Date of Deregistration

Place and date:
Legal representative/attorney
Signature and printed name

Within 30 business days of the request for registration and of the completion of the submission of all the information detailed above –in the latter case when it concerns a PSTV– a response to the registration request shall be given by notification sent to the email address provided by the PSTV in Form I.

In the case of PSTVs, any change recorded in the information or documentation required in this point must be reported to the SEFyC within 15 business days of its occurrence. If applicable, they shall submit criminal record certificates with the scope provided in point 2.2.

Section 3. Conditions for operating.

3.1. Prevention of money laundering and terrorist financing.

PSTVs must comply with the provisions of the legislation in force in these matters (laws and regulatory decrees), in the related rules issued by the Financial Information Unit (UIF) and in these regulations. This includes the decrees of the National Executive Branch with reference to the decisions adopted by the United Nations Security Council in the fight against terrorism and compliance with the Resolutions (with their respective Annexes) issued by the Ministry of Foreign Affairs and Worship.

3.2. Transparency.

In the case of services provided to third parties, all documentation issued must provide clear and detailed information on the services offered and include the fee schedule detailing the charges and commissions applicable to all types of clients for the service of land transport of valuables, safekeeping, custody, counting and sorting of valuables, which shall also be included on the home page of its institutional website and, when advertised, in the relevant media.

The aforementioned fee schedule must include, at a minimum, the following information: fixed rates, variable rates (according to distance traveled, geographic area, volume transported, recounted or sorted) and discounts offered (by volume, by contracting several services, etc.). When the rate is not standardized by type of service provided, the price range (minimum - maximum) must be disclosed according to the different elements that determine it.

In addition, they must inform the service requester in advance of the estimated date and time when the valuables will be at destination.

3.3. Operations and services.

The valuables subject to transport, safekeeping, counting and sorting or custody must be permanently individualized from their receipt, by means of identifica- tion of the client and detail of the contents in the means used for their containment and safe- keeping –bags or other elements–.

Section 4. Information regimes.

The TVP and the PSTV must provide information related to the development of their activities in accordance with the procedure, deadlines and detail that may be made known in due course.

Section 5. Non-compliances.

The PSTV and the members of their governing, administrative and audit bodies, for the non-compliances found with respect to these rules, shall be subject to the application of the sanctions as provided in articles 41 and 42 of the Financial Entities Law and concordant provisions.

Likewise, non-compliance with these rules may result in the removal of the TV from the "Registry of valuables transporters", consequently prohibiting the provision of the valuables transport service. The TV in question may only request a new registration in said registry after 90 calendar days have elapsed from the date it was removed and its reincorporation may take place provided that it has remedied the observed non-compliance.

Without prejudice to the foregoing and provided that the non-compliances are not serious, prior to removal from the registry, the TVs shall have a period of 60 calendar days –counted from the notification of the non-compliances detected by this Institution sent to the TV's email address– to remedy them.