Special Service Offices - Agencies and Offices; Temporary Service Offices; Adjustments

2010 - YEAR OF THE BICENTENNIAL OF THE MAY REVOLUTION

COMMUNICATION “A” 5079
27/05/2010

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CREFI 2 - 64
RUNOR 1 - 924

Special service offices - agencies and offices-. Temporary service offices. Adjustments.

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We address you to inform you that this Institution adopted the following resolution:

“1. Incorporate in Chapter II of Circular CREFI - 2, the following Section:

“Section 14. Special service offices -agencies and offices-.

14.1. Scope.

Financial institutions that have at least rating 3 assigned by the Superintendency of Financial and Exchange Institutions may install special service offices, subject to verification by that Superintendency of compliance with the conditions of point 14.2., in any of the jurisdictions included in categories II, III and IV -according to the definition contained in point 2.1.2. of Section 2. of the rules on “Minimum capital of financial institutions”-.

New financial institutions may install such special offices even if they do not have a rating granted by the Superintendency of Financial and Exchange Institutions.

14.2. Procedure and requirements for installation.

14.2.1. Agencies.

In order to request their installation, financial institutions must comply with the requirements set forth in points 1.1. and 1.2. of Section 1. of Chapter II of Circular CREFI - 2.

The request shall be made by means of a note submitted to the Authorizations Management of the Superintendency of Financial and Exchange Institutions, in which the activities they plan to develop and the branch, or where applicable, the head office on which the agency will operationally depend, shall be indicated.

Once the request has been conformed by the pertinent technical areas or 90 calendar days have elapsed since its presentation without the Superintendency of Financial

CENTRAL BANK
OF THE ARGENTINE REPUBLIC

and Exchange Institutions having raised an objection, the institution shall be in a position to proceed with the opening of the agency within a period of 6 months -extendable, only once, for a maximum term of 6 months-, after compliance with the requirements established in point 4.1. of Section 4. of Chapter II of Circular CREFI - 2, except as regards the required rating, for which the provisions of point 14.1. shall be taken into account.

In cases where financial institutions do not present the information and/or documentation requested by the Superintendency of Financial and Exchange Institutions within 30 calendar days counted from the date of said request, the installation request shall be considered withdrawn.

Upon expiration of the 6-month period, or where applicable, its extension, without the commencement of activities of the pertinent office having occurred, the authorization shall be void, the proceedings being filed without further procedure and the requesting institution losing any priority that might correspond to it.

The agency must remain in operation for at least 24 months.

14.2.2. Offices.

Financial institutions may install offices after communication by note sent to the Superintendency of Financial and Exchange Institutions -Authorizations Management- at least 30 calendar days in advance of the date set for their opening, and must state the activities they plan to develop and the branch, or where applicable, the head office on which they will operationally depend.

14.3. Operational relationship.

Special service offices shall operationally depend on a branch or, where applicable, the head office of the financial institution.

The agencies or offices and the branch or, where applicable, the head office on which they operationally depend may belong to different categories, and may not be installed in municipalities, communes or localities -as applicable according to the pertinent jurisdiction- of more than 30,000 inhabitants.

The categories mentioned above are those provided in the table of Categories established in point 2.1.2. of Section 2. of the rules on “Minimum capital of financial institutions”.

14.4. Activities included.

14.4.1. Agencies.

a) Reception and processing of applications and/or any other documentation deemed necessary related to loans for natural and legal persons, whatever their purpose and modality.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

The participation of this office shall be limited to identifying the applicant and receiving the information required by the branch or, where applicable, the head office on which it operationally depends, to the comparison of copies against the original documentation -leaving written record thereof-, as well as to managing its pro- cessing at the aforementioned branch or head office.

b) Disbursement of loans to natural persons in cash, whose principal does not exceed $10,000.

c) Disbursement of financings granted in accordance with the provisions of point 1.1.3.4. of Section 1. of the rules on “Credit management” (Loans for microentrepreneurs and financings to Microcredit Institutions), whose principal does not exceed $10,000.

d) Cash advances by credit cards, of up to $10,000 per month and per account.

e) Opening, operation and closing of peso accounts of savings banks, payment of remunerations, basic accounts, checking accounts, special checking accounts for legal persons and, in the case of cooperative credit banks, demand accounts.

f) Constitution of non-transferable fixed-term deposits in pesos by debit to account or in cash, in the latter case for up to $10,000.

The cancellation of these deposits may be made at the agency with credit to account or in cash when it involves withdrawals of amounts up to $10,000.

Clients must go to the branch or, as the case may be, to the head office on which the agency depends in cases where cash withdrawals exceed the aforementioned amount.

g) Cash deposits in pesos of up to $10,000 -per account and per day- in savings accounts, basic accounts, checking accounts, special checking accounts for legal entities and, in the case of cooperative credit banks, demand accounts.

h) Withdrawals of funds in pesos of up to $10,000 -per account and per day- from savings accounts, remuneration payment accounts, basic accounts, checking accounts, special checking accounts for legal entities and, in the case of cooperative credit banks, demand accounts.

Clients must go to the branch or, as the case may be, to the head office on which the agency depends in cases where cash withdrawals exceed the aforementioned amount.

i) Deposits of checks and bills of exchange.

j) Payment of pension benefits and social security benefits.

k) Collection of services, taxes, fees, contributions, loan install- ments, credit cards and other similar concepts. l) Receipt and processing of applications for credit and/or debit cards and their corresponding delivery.
The participation of this dependency shall be limited to identifying the applicant and receiving the information requested by the branch or, as the case may be, the head office on which it operationally depends, to the comparison of copies against the origi- nal documentation -leaving written record thereof-, as well as to manage their pro- cessing at the aforementioned branch or head office. m) Sale of fiscal securities and receipt of judicial deposits of up to $10,000 in cash. n) Payment and collection services to suppliers and clients of companies, provided that they are made through the delivery and receipt of checks or other means of payment compensable by electronic clearing houses, and of re- ceipt and delivery of commercial and administrative management documents and custody linked to such services, for concepts not included in k). ñ) Transfers between demand accounts. o) Inquiries of balances and movements of demand accounts. p) Archiving and safekeeping of the supporting documentation of operations, except for the credit application and other documents that instru- ment the obligation of the debtor and its guarantor, which must be sent for their safekeeping to the branch or, as the case may be, to the head office on which it opera- tionally depends. q) Others that do not involve movements of cash or securities (applications for can- cellation -partial or total- of loans with account debit, certification of signatures, intermediation of general insurance contracts as insti- tory agents, etc.). The description of these activities must be specified in the note to which point 14.2.1 refers. The accounts for which the corresponding opening is requested must be located at the house on which the agency operationally depends.

14.4.2. Offices.

a) Receipt and processing of applications and/or any other documentation deemed necessary related to loans for natural persons regardless of their purpose or modality and, in the case of legal entities, receipt of applications and loan documentation for sending to the pertinent branch or, as the case may be, to the head office.

The participation of this dependency shall be limited to identifying the applicant and receiving the information requested by the branch or, as the case may be, the head of- fice on which it operationally depends, to the comparison of copies against the docu- mentation original -leaving written record thereof-, as well as to manage its processing at the aforementioned branch or head office.

b) Receipt and processing of applications for credit and/or debit cards and their corresponding delivery.

The participation of this dependency shall be limited to identifying the applicant and receiving the information requested by the branch or, as the case may be, the head office on which it operationally depends, to the comparison of copies against the original documentation -leaving written record thereof-, as well as to manage its processing at the aforementioned branch or head office.

c) Management of opening and closing of savings accounts, remuneration payment accounts and basic accounts.

d) Others that do not involve cash movements (processing of applications for cancellation -partial or total- of loans, intermediation of general insurance contracts as institory agents).

The description of these activities must be specified in the note to which point 14.2.2 refers.”

2. Establish that the financial entity that requests the installation of special service dependencies -agencies- shall enjoy an exclusivity right for the installation of those dependencies within a radius of 30 kilometers from its location, for a term of 18 months counted from the month following the disclosure of this communication, or 12 months counted from the month following that in which its opening may proceed, whichever is greater.

This is to the extent that there are no other financial entities that, as of the effective date of this communication or as of the date of submission of the corresponding application -in accordance with the provisions of point 14.2. of Section 14. of Chapter II of Circular CREFI - 2 (point 1. of this communication)-, as applicable, have within the radius where its installation is requested, a head office or branch enabled and operating or a branch authorized to operate.

3. Incorporate into the rules on “Minimum security measures in financial entities” the following Section:

“Section 7. Minimum security devices for special service dependencies -agencies-.

7.1. The premises must be an enclosed area with a single direct access point to the place where operations are carried out; if other accesses are available, they must remain closed for entry while the activity lasts and while the operations for which this agency is installed are carried out; no other activity unrelated to it may be carried out simultaneously.

If the premises have glass surfaces bordering the exterior, it must have an adequate installation of electronic sensors as determined in point 2.2. of
Section 2. or a 24-hour surveillance service with a remote alarm system
button at its disposal.

7.2. It must have an additional police officer with a portable alarm button linked to the security agency. In the event that the jurisdictional security agency has difficulties in providing the service, it will be replaced by a legally authorized private security company, after notification to the Central Bank of the Argentine Republic.

7.3. The public service teller lines must have the security measures detailed in point 2.9. of Section 2. With compliance with this measure, the amounts in each teller position will be determined by the entity.

7.4. They must have closed-circuit television cameras and recording equipment in accordance with the provisions of point 2.10. of Section 2., for the purpose of recording images that allow reliable identification of persons and contribute to the investigation of criminal acts. Image control and recording may be local and/or remote (access to the premises, public service tellers, and automated teller machines, if installed).

7.5. For safekeeping, they must have a mobile treasure chest that complies with the rules detailed in point 2.3.2. of Section 2., or an automated teller machine in accordance with the provisions of point 5.1. of Section 5.

7.6. If they opt for the use of 24-hour deposit boxes, these must have the security measures detailed in point 5.3. of Section 5.

7.7. The transportation of money shall be carried out in accordance with the provisions of Decree “R” 2625/73 and its amendments.

7.7.1. In due course, the Central Bank of the Argentine Republic will inform the update of the maximum amounts to be transported for each mode of transfer.

7.7.2. Financial entities must take the necessary precautions to ensure proper compliance with the provisions of articles 5 and 12 of Decree “R” 2625/73 in the loading and unloading of money carried out by armored cash transport vehicles, whether owned or third-party; for this purpose, they must arrange with the municipal authorities of each jurisdiction a free and exclusive parking place for armored money transport trucks in front of them.

7.8. Cases deserving special consideration will be evaluated by the Central Bank of the Argentine Republic, which will decide on the matter with the advice it deems pertinent.

7.9. They shall comply with the details in Section 6. Complementary provisions, as applicable.”

4. Replace points 13.2.3. and 13.4. of Section 13. Temporary service offices, of Chapter II of Circular CREFI - 2 (text as per Communications “A” 4578 and “A” 4771), with the following:

“13.2.3. The application must state the address, the operating office on which it will depend - which will be the nearest - and the frequency of service - days per week and public service hours -.

In cases where the provision of services is made only during the tourist season, in addition to the aforementioned data, the periods of the year in which it will operate must be specified.”

“13.4. Advertising.

The temporary service office must prominently display, visible from outside the premises, the periods, days, and hours of service; it must also indicate the name of the financial entity, the address, and telephone number of the branch on which it operationally depends.

When it plans to modify the days, hours, or periods of service, it must notify its clients 30 calendar days in advance through a mass media outlet in the locality and through an indicator located in a place visible from outside the premises, and the Superintendency of Financial and Exchange Entities by note.”

We send you in annex the sheets that, in replacement of those previously provided, should be substituted in the rules on “Minimum security measures in financial entities”. Finally, it is recalled that on the page of this Institution www.bcra.gov.ar, accessing “regulations” (“ordered texts”), you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Issuance Manager of Regulations

Alfredo A. Besio
Deputy General Manager of Regulations a/c

ANNEX

B.C.R.A.
ORDERED TEXT OF THE RULES ON MINIMUM MEASURES OF SECURITY IN FINANCIAL ENTITIES

-Index-

Section 1. Introduction.

Section 2. Minimum security devices for banks and savings banks (head offices, parent companies, and subsidiaries).

2.1. Armored booth.

2.2. Remote alarm.

2.3. Armored vault.

2.4. Protection at access points and glass surfaces.

2.5. Additional police service.

2.6. Night watchman services and lighting.

2.7. Enclosure for important operations.

2.8. Elements for temporary safekeeping in public service tellers.

2.9. Security measures in public service tellers or at the entity's access.

2.10. Closed-circuit television security.

Section 3. Minimum security devices for financial companies, credit banks, and savings and loan associations for housing or other real estate.

3.1. When the hoarded cash does not exceed $ 22,000.00.

3.2. When the hoarded cash exceeds $ 22,000.00.

Section 4. Money transport.

Section 5. Special provisions.

5.1. Minimum security measures in the installation of automated teller machines.

5.2. Minimum security measures in premises that provide certain services and in those installed at client companies.

5.3. Around-the-clock deposit boxes.

Section 6. Supplementary provisions.

6.1. Declaration of the minimum security measures adopted, when notifying the authorization or relocation of a financial institution's office.

6.2. Self-grouping, in the subsections provided for in Article 1 of Decree No. 1.284/73, of finance companies, credit unions and savings and loan associations for housing or other real estate.

6.3. Reporting of criminal acts and losses caused to the detriment of financial institutions.

6.4. Refraining from sending plans or sketches.

6.5. Directives issued by RENAR (National Weapons Registry).

6.6. Possession of suitability and/or replacement certificates.

6.7. Expert appraisals of the suitability of security elements.

6.8. Persons responsible for the Security of the Financial Institution.

6.9. Security Plan.

Section 7. Minimum security devices for special service offices -agencies-.

Version: 3rd. COMMUNICATION “A” 5079
Effective date:
27/05/2010
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MINIMUM SECURITY MEASURES IN FINANCIAL INSTITUTIONS B.C.R.A. Section 7. Minimum security devices for special service offices -agencies-.

7.1. The premises must be an enclosed area with a single direct access point to the place where transactions are carried out; if other accesses are available, they must remain closed for entry while the activity lasts and while the operations for which this agency is installed are carried out; no other activity unrelated to it may be carried out simultaneously.

If the premises have glass surfaces bordering the outside, it must have an adequate installation of electronic sensors as determined in point 2.2. of Section 2, or a 24-hour surveillance service with a remote alarm system push button at its disposal.

7.2. It must have an additional police officer with a portable alarm push button linked to the security agency. In the event that the jurisdictional security agency has difficulties in providing the service, it will be replaced by a legally authorized private security company, after notification to the Central Bank of the Argentine Republic.

7.3. The public service teller lines must have the security measures detailed in point 2.9. of Section 2. With compliance with this measure, the amounts in each teller position will be determined by the institution.

7.4. They must have closed-circuit television cameras and recording equipment in accordance with what is determined in point 2.10. of Section 2, for the purpose of recording images that allow reliable identification of persons and contribute to the investigation of criminal acts. Image control and recording may be local and/or remote (access to the premises, public service teller stations and automated teller machines, if they have been installed).

7.5. For hoarding, they must have a mobile treasure box that complies with the rules detailed in point 2.3.2. of Section 2, or an automated teller machine in accordance with the provisions of point 5.1. of Section 5.

7.6. If they choose to use around-the-clock deposit boxes, these must have the security measures detailed in point 5.3. of Section 5.

7.7. Money transport shall be carried out in accordance with the provisions of Decree “R” 2625/73 and its amendments.

7.7.1. In due course, the Central Bank of the Argentine Republic will report the update of the maximum amounts to be transported for each mode of transfer.

7.7.2. Financial institutions must take the necessary steps to ensure that the provisions established in Articles 5 and 12 of Decree “R” 2625/73 are properly complied with in the activity of loading and unloading money carried out by armored cash transport vehicles, whether owned or third-party; for this purpose, they must arrange with the municipal authorities of each jurisdiction a free and exclusive parking place for armored money transport trucks in front of them.

7.8. Cases deserving special consideration will be evaluated by the Central Bank of the Argentine Republic, which will decide on the matter with the advice it considers pertinent.

7.9. They shall comply with what is detailed in Section 6. Supplementary provisions, as applicable.

Version: 1st. COMMUNICATION “A” 5079
Effective date:
27/05/2010
Page 1