Requirements to obtain the Technical Certificate referred to under the General Law of Ancillary Credit Activities and Institutions.
The financial reform bill published in the Federal Official Gazette on January 10, 2014 provides, among some other matters, a new legal regime for the incorporation, operation and existence of different kinds of financial institutions, including the unregulated Multiple Purpose Financial Companies ( “SOFOMs ENR” acronym for their Spanish name Sociedades Financieras de Objeto Múltiple no reguladas).
One of the major changes that the reform brought in relation to SOFOMs ENR is the obligation for such institutions to secure a “technical certificate” from the National Banking and Securities Commission by means of which each SOFOM ENR shall evidence that it has the minimum requirements regarding anti-money laundering practices; without which no such entity may qualify.
As a follow-up to the Reform, on April 4, 2014, the above Commission published in the Federal Official Gazette the “General provisions for the Exchange Centers, Money Transmitters, and SOFOMs ENR to secure the Technical Certificate”, which set forth the procedure, terms and means for the SOFOMs ENR to secure or renew their certificate.
In order to secure the Technical Certificate, an electronic application must be submitted through the Inter-Institutional Transfer Information System (SITI, for its acronym in Spanish). The Commission shall have a 60 calendar day term to notify its resolution, whether approving or rejecting the application. If the Commission fails to answer within such term, the application shall be deemed as approved and, therefore, the SOFOM ENR may commence or continue with its activities as a financial institution.
According to the sole transitional article of the Provisions, these shall become effective (and, consequently, the SOFOMs ENR shall be required to secure the certificate) when upon issuance and effectiveness of the “General provisions regarding the registry referred to in article 87-K of the General Law of Ancillary Credit Activities and Institutions”, which shall be published by no later than October 7th, 2014.