EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA

La Paz, August 13, 2013
SGDB No. 032/2013

FROM: GENERAL MANAGEMENT
FINANCIAL ENTITIES MANAGEMENT

TO: FINANCIAL INTERMEDIATION ENTITIES, COMPENSATION AND CLEARING SERVICE ENTITIES, ELECTRONIC COMPENSATION EXCHANGES, PAYMENT SERVICE PROVIDER COMPANIES, OPEN-ENDED INVESTMENT FUNDS, AND INVESTMENT FUND MANAGEMENT COMPANIES

SUBJECT: AMENDMENT TO THE PAYMENT SERVICES REGULATION

Ladies and Gentlemen:

The Central Bank of Bolivia announces that through Board Resolution No. 100/2013 of July 30, 2013, modifications to the Payment Services Regulation have been approved.

These modifications incorporate into the BCB's supervisory activities the identification of the types of Payment Service Provider Companies and the main activities they carry out. By way of example and not limitation, it defines the types of existing Payment Service Provider Companies and modifies the definition of acquiring, thereby authorizing the use of a wider range of electronic instruments to make payments at commercial establishments in the country.

Sincerely,

MMV/CCL/ÖID/PMS/JCS

CENTRAL BANK OF BOLIVIA
Contributing to the country's development
85 YEARS
Ayacucho and Mercado • Tel: (591-2) 2409090 • P.O. Box: 3118 www.bcb.gob.bo • bcb@bcb.gob.bo • La Paz-Bolivia Quinua 2013 International Year

BOARD RESOLUTION NO. 100/2013

SUBJECT: FINANCIAL ENTITIES MANAGEMENT – AMENDMENT TO THE PAYMENT SERVICES REGULATION.

VIEWED:

The Political Constitution of the State.
Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).
Law No. 1488 of April 14, 1993, on Banks and Financial Entities (Consolidated Text).
The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005 and subsequent modifications.
The Payment Services Regulation approved by Board Resolution No. 121/2011 of September 27, 2011 and modified by Board Resolution No. 59/2012 of May 22, 2012.
The Electronic Payment Instruments Regulation approved by Board Resolution No. 126/2011 of October 4, 2011 and modified by Board Resolutions No. 25/2012, 60/2012, and 22/2013 of February 23, 2012, May 22, 2012, and March 5, 2013, respectively.
The Regulation for the Transfer of International Remittances approved by Board Resolution No. 071/2012 of June 19, 2012 and modified by Board Resolution No. 154/2012 of August 28, 2012.
The Report from the Financial Entities Management BCB-GEF-SAF-DSP-INF-2013-162 of July 24, 2013.
The Report from the Legal Affairs Management BCB-GAL-SANP-INF-2013-253 of July 29, 2013.

CONSIDERING:

That the Political Constitution of the State establishes in its Article 328 that it is the responsibility 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.

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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, all financial intermediation entities and financial services authorized by the Superintendence of Banks and Financial Entities, currently the Financial System Supervision Authority (ASFI), being subject to its regulatory competence.

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 attributes, 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 Report BCB-GEF-SAF-DSP-INF-2013-162, recommends approving modifications to the Payment Services Regulation in order to establish, by way of example and not limitation, the companies that, according to the activities they perform, will be considered as Payment Service Provider Companies within the payment system.

That the Legal Affairs Management, through Report BCB-GAL-SANO-INF-2013-253, concludes that the proposal for modification to the Payment Services Regulation presented by the GEF is legally appropriate, as it does not contravene the current legal framework, and it is the competence of the BCB Board to consider its approval.

That the BCB Board, in its capacity as the highest authority of the Institution, is responsible for defining policies, specialized regulations of general application, and internal norms, and is 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.

THEREFORE,

THE BOARD OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify item a) of Article 5 of the Payment Services Regulation as follows:

IT SAYS:

a) Acquiring. Process through which a company, prior to agreement with a card brand, affiliates merchants to process their transactions with these cards, provides electronic terminals, and is responsible for the collection and custody of the information of the processed transactions and the settlement with affiliated establishments.

IT SHALL SAY:

“a) Acquiring. Process through which a PSP affiliates merchants to process payment orders with electronic payment instruments, provides electronic terminals, and is responsible for the collection and custody of the information of the processed transactions and the settlement with affiliated merchants.”

(...)

Article 2.- Incorporate into Article 17 of the Payment Services Regulation, item e) as follows:

“e) Identify types of PSPs and their main activity, which will be included in the list contained in Chapter IV, Article 19 of this Regulation.”

Article 3.- Incorporate Chapter IV PAYMENT SERVICE PROVIDER COMPANIES of the Payment Services Regulation, with Article 19 in the following terms:

Chapter IV PAYMENT SERVICE PROVIDER COMPANIES

“Article 19 (Types of PSPs). Within the scope of the payment system, by way of example and not limitation, the following are considered as PSPs:

a) Mobile Payment Service Companies (MPS): A legal person whose main activity is the issuance and administration of mobile wallets and the processing of payment orders derived from this instrument, pursuant to items a), b), and c) of Article 10 of this Regulation. Companies included in this category may also carry out accessory activities related to the management of payment instruments, such as acquiring, or other payment services permitted according to what is provided in items g) and h) of Article 10 of this Regulation.

b) Electronic Payment Instrument Administrators: A legal person whose main activity is the administration of EPIs authorized by the BCB, as well as the processing of payment orders generated from EPIs within

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the framework of what is provided in items b) and c) of Article 10 of this Regulation and Articles 6 and 24 of the Electronic Payment Instruments Regulation approved by the BCB. Companies included in this category may also carry out accessory activities related to the management of payment instruments, such as acquiring, or other payment services permitted according to what is provided in items g) and h) of Article 10 of this Regulation.

c) Remittance Companies: A legal person whose main activity is to habitually carry out the service of international remittance transfers within the framework of the BCB Regulation for the Transfer of International Remittances and the Regulation for the Constitution, Adaptation, Operation, Dissolution, and Closure of Remittance Companies issued by the ASFI.

Companies included in this category may carry out operations related to this activity, such as the sending and payment of internal and external drafts, purchase and/or sale of foreign currency, and the collection of basic services.

d) Exchange Houses: A natural or legal person authorized to habitually carry out the purchase and sale of foreign currency and other operations related to their business within the national territory, such as the remittance transfer service and the sending and receipt of internal drafts, within the framework of the Regulation for the Constitution, Incorporation, Operation, Dissolution, and Closure of Exchange Houses issued by the ASFI.

The entities detailed above, in addition to their main activity, may provide other payment services, such as the clearing and settlement of payment instruments, which must previously be authorized by the ASFI, within the framework of what is provided in Article 10, paragraph II of Article 11, and Article 12 of this Regulation, as applicable.”

Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, July 30, 2013

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