Through Resolution No. BCE-GG-024-2024, published in the Official Gazette No. 678 on November 7, 2024, the Central Bank of Ecuador (“BCE“) complied with the first transitional provision of Resolution No. JPRM-2024-018-M, issued by the Monetary Policy and Regulation Board (“JPRM“) on September 4, 2024, and enacted the Regulation for the Authorization, Oversight, and Supervision of Participants in the Auxiliary Payment Systems (hereinafter, the “BCE Resolution“).
The BCE Resolution repealed Resolution No. BCE-GG-018-2023, issued by the Central Bank on September 29, 2023, which previously governed this matter.
This regulatory update amends the criteria that entities must meet to be qualified by the Central Bank as participants in the Auxiliary Payment Systems (“Participants“).
The BCE Resolution strengthens the qualification process by imposing more rigorous requirements for entities seeking to obtain such status. Notable among the new requirements are:
- ISO 27001 Certification on Information Security Management Systems or the implementation of policies, processes, procedures, and methodologies for information security aligned with international standards.
- ISO 22301 Certification for Business Continuity Management or a business continuity plan that adheres to recognized international standards and practices.
- ISO 31000 Certification on Risk Management or a methodology for managing operational risks.
- A liquidity risk management methodology, integrating operational and analytical tools for identifying, measuring, controlling, and monitoring such risks.
- A Corporate Governance Manual tailored to the administrative structure of the Participant.
- A Customer Service Manual.
- A Personal Data Protection Policy aligned with the Data Protection Law and its Regulations.
- Certificate of compliance issued by the Financial and Economic Analysis Unit – UAFE.
Additionally, the BCE Resolution imposes periodic reporting obligations requiring Participants to submit information in structures established by the Central Bank.
The BCE Resolution mandates that, within a maximum of four (4) months, the BCE will require currently authorized Participants in the Auxiliary Payment Systems to submit the additional documents and requirements specified in the BCE Resolution.
The BCE will also have to update the registry of Participants in the Auxiliary Payment Systems to ensure that services listed for each Participant comply with the provisions of Resolution No. JPRM-2024-018-M.
Juan Fernando Riera, Associate at CorralRosales
jriera@corralrosales.com
+593 2 2544144