Regulatory Alerts2013-04-19 | SGDB N° 019/2013Added · Updated
SGDB N° 019/2013
The Central Bank of Bolivia amends Chapter VIII of the Check Regulation to rename it "Surveillance and Supervision" and adds Article 40, which grants the Financial System Supervisory Authority (ASFI) the power to issue specific regulations for check issuance and operations, supervise consumer defense and fraud prevention policies, and verify the public availability of check-related fees. These modifications clarify the supervisory roles of the ASFI and the Central Bank regarding check operations and take effect immediately upon approval.
[Logo: Central Bank of Bolivia]
EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA
La Paz, April 19, 2013 SGDB No. 019/2013
FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: FINANCIAL INTERMEDIATION ENTITIES, CLEARING AND SETTLEMENT CHAMBER ADMINISTRATORS SUBJECT: MODIFICATIONS TO THE CHECK REGULATION
Ladies and Gentlemen:
The Central Bank of Bolivia announces that, with Board Resolution No. 035/2013 of April 2, 2013, modifications to the Check Regulation were approved. These modifications clarify the supervisory activities carried out by the Financial System Supervisory Authority and grant this entity the authority to issue specific regulations for the provision and operation of checks.
Sincerely,
[Logo: Central Bank of Bolivia]
BOARD RESOLUTION NO. 035/2013
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES MODIFICATIONS TO THE CHECK REGULATION
VIEWED:
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.
The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005, and its subsequent modifications.
The Check Regulation approved by Board Resolution No. 188/2012 of November 6, 2012.
The reports from the Financial Entities Management BCB-GEF-SASF-DSP-INF-2013-72 of March 12, 2013, and BCB-GEF-SASF-DSP-INF-2013-80 of March 25, 2013.
The reports from the Legal Affairs Management BCB-GAL-SANO-INF-2012-77 of March 14, 2013, and BCB-GAL-SANO-INF-2013-98 of March 28, 2013.
The Internal Communication from the Financial Entities Management BCB-GEF-SASF-DSP-CI-2013-54 of March 14, 2013.
CONSIDERING:
That the Political Constitution of the State establishes in its article 328 that it is an attribution 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 ensure the stability of the internal purchasing power of the national currency, for the fulfillment of which it formulates policies of general application in monetary and payment system matters, being subject to its regulatory competence all financial intermediation and financial services entities 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, items 4 and 6, determines that financial intermediation and auxiliary financial services activities will be carried out by financial entities authorized by the ASFI, an Institution that has among its attributions, among others, to supervise natural or legal persons who carry out auxiliary financial intermediation activities, as well as to incorporate into its scope of competence, in accordance with the BCB, other persons or entities that carry out financial intermediation activities.
That the Financial Entities Management, through Reports BCB-GEF-SASF-DSP-INF-2013-72 and BCB-GEF-SASF-DSP-INF-2013-80, establishes the need to modify the current Regulation to clarify and strengthen the supervisory activities carried out by the ASFI, granting this entity the authority to issue specific regulations for the provision and operation of checks.
That according to reports BCB-GAL-SANO-INF-2013-77 and BCB-GAL-SANO-INF-2013-98, the Legal Affairs Management establishes that the modification to the Check Regulation is legally appropriate.
That, the Board of Directors of the BCB, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized regulations 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 Issuing Entity, as established in articles 44 and 54 item o) of Law No. 1670 and articles 9, 11, and 24 of the Statute of the BCB.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1. Modify Chapter VIII of the Check Regulation in the following terms:
WHERE IT SAYS:
CHAPTER VIII SURVEILLANCE
Article 39. (Surveillance).
The BCB, through the Financial Entities Management, will carry out surveillance of operations carried out with checks, their clearing, and settlement. In this framework, it may:
a. By Board Resolution, determine the maximum tariffs, commissions, and other charges applicable to the use of checks.
b. Request the ASFI to review the contingency systems of check issuers, as well as special audits of the issuers regarding their operation.
If, in the exercise of these duties, the BCB identifies indications of regulatory or operational non-compliance, it will communicate the fact to the supervisory body for the corresponding process.
IT MUST SAY:
“CHAPTER VIII SURVEILLANCE AND SUPERVISION
Article 39. (Surveillance).
The BCB, through the Financial Entities Management, will carry out surveillance of operations carried out with checks, their clearing, and settlement. In this framework, it may:
a. By Board Resolution, determine the maximum tariffs, commissions, and other charges applicable to the use of checks.
b. Request the ASFI to review the contingency systems of check issuers, as well as special audits of the issuers regarding their operation.
If, in the exercise of these duties, the BCB identifies indications of regulatory or operational non-compliance, it will communicate the fact to the supervisory body for the corresponding process.
Article 40. (Specific regulations and supervision).
Within the framework of this Regulation, the ASFI:
I. In coordination with the BCB, will issue specific regulations for the provision and operation of checks by financial intermediation entities and
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Electronic Clearing Chambers, will verify compliance and exercise supervision within its scope of competence.
II. Will define and supervise consumer defense policies and operational fraud prevention measures.
III. Will verify that the tariffs, commissions, or other charges charged by check issuers are available for public consultation.”**
Article 2.- The modifications to the Check Regulation will enter into force from the date of their approval.
Article 3.- The Presidency and General Management are entrusted with the execution and compliance of this Resolution.