Authorities Pass First Batch Of Secondary Regulations For Fintech Law - Finance and Banking - Mondaq Mexico - Mondaq Business Briefing - Books and Journals - VLEX 742288985

Authorities Pass First Batch Of Secondary Regulations For Fintech Law

Author:Mr Miguel A. Peralta, Pedro Said Nader and Patrick Stockdale
Profession:Basham, Ringe y Correa, S.C.
 
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The General Provisions referred to in Article 58 of the Law to Regulate Financial Technology Institutions (“Fintech Law”), Circular 12/2018 addressed to the Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico), relative to the general provisions applicable to the operations of the Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico) and the General Provisions applicable to the Financial Technology Institutions ("Fintechs"), were published in the Federal Official Gazette (Diario Oficial de la Federación) on September 10, 2018 (collectively the "Secondary Provisions")

Purpose of the Secondary Provisions

Mexico's Central Bank (Banco de México)

Circular 12/2018

(a) Establish the characteristics of the transactions carried out by the Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico) (electronic wallets);

(b) Establish the terms and conditions regarding the issuance of electronic payment funds in connection to foreign currency and, in general, carrying out transaction with foreign currency, as well as the provision of the money transfer service referred to in the Fintech Law, in foreign currency;

(c) Determine limits to the amounts of the credits or loans for overdrafts that the Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico) (electronic wallets) grant in terms of the Fintech Law;

(d) Establish the terms and conditions for the offering of non-monetary benefits by the Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico) (electronic wallets);

(e) Establish the limits to the resources that the Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico) (electronic wallets) will be able to maintain in name and behalf of their clients or of those that a client will be able to dispose through them; and

(f) Determine the information related to the activities and transactions of Electronic Payment Funds (Instituciones de Fondos de Pago Electrónico) (electronic wallets) that these should report to the Central Bank of Mexico (Banco de México), as well as their corresponding periodicity.

Treasury Department ("SHCP")

General Provisions referred to in Article 58 of the Law to Regulate Financial Technology Institutions

(a) Establish the minimum measures and procedures that the Fintechs must observe to prevent and detect acts, omissions or transactions that may favor, provide aid, assistance, or cooperation of any kind to commit the offenses set forth...

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