Fintech Department Bulletin | Fintech Legal News in Argentina No. 19.
by Daniel Levi
The BCRA prepares the launch of the complete phase of Transfers 3.0
Through various press releases
The Central Bank of the Argentine Republic (BCRA) established November 29th, 2021, as the deadline for the instant-payment project “Transfers 3.0” to be definitively launched and for the QR codes to be fully interoperable.
A few days after that date, the BCRA issued various notices and regulations tending to preannounce the launch. Thus, for example, on November 3rd, the BCRA issued a press release in which it reminded companies that have developed e-wallets, or are in the process of doing so, that they must integrate their credentials to participate in the National Payment System (SNP), to be part of Transfers 3.0. The BCRA clarified that those participants who as of November 29th are not properly integrated into a payment scheme that offers immediate transfers (currently there are 3 available, administered by COELSA, Red Link, and Prisma) will not have access to the SNP.
On the other hand, on November 12th, the BCRA issued a press release, where it simply summarized the characteristics and advantages that the Transfer 3.0 system would have. Among other things, for example, the BCRA defined “E-Wallets” (a key element for the operation of the system) as “a mobile application that allows multiple financial operations from the cell phone. It can be linked to the bank and non-bank accounts and credit and debit cards, among others”.
Likewise, on November 20th, the BCRA, through another press release, recalled that users of digital wallets will have the option of associating them directly with their bank accounts or virtual payment accounts, without the need for the use of a debit card, thus enabling direct payment with QR.
Enrollment of accounts in digital wallets
Clarifications on the accounts reached
In line with the aforementioned news, on September 10th, through Communication “A” 7363, the BCRA had established that, as of December 1st, financial entities and “Payment Service Providers that Offer Credit Accounts Payment” (PSPOCP), which provide the service known as “e-wallet” or similar, must allow the wallet holders to associate with them their bank accounts and payment accounts of which they are holders or joint holders.
Given that the scope of the regulation generated certain doubts in the market regarding the scope of the accounts to be enrolled, on September 16th the BCRA had to clarify, through Communication “B” 12.223, that the enrollment obligation is extended only to bank accounts or payment accounts offered by the same financial entities or PSPOCPs, so there would be no obligation to enroll accounts of third-party providers as initially speculated.
Requirements for administrators of Transfer 3.0 schemes
Prevention of anti-competitive behavior
Although the initial regulations had already anticipated provisions in this regard, on September 17th, the BCRA issued Communication “A” 7367 through which it reinforced the need for administrators of payment schemes under Transfers 3.0 to refrain from adopting anticompetitive conduct, mainly when they can assume similar roles to other participants in the scheme.
In this sense, the BCRA imposed on them the obligation to present an Adaptation Plan detailing the functions assumed (directly and indirectly) by the administrator in the transfer scheme and specifying the anti-competitive measures actively adopted.
Among these measures, administrators must enable communication channels so that participants and merchants of the scheme can make complaints or claims. Every six months, each administrator must prepare and submit to the BCRA reports on such complaints and claims. Likewise, on an annual basis, they must prepare a special independent professional report that certifies whether there was any discriminatory treatment towards other participants in the scheme.
Finally, the BCRA also rectified the rule on Sanctions to PSPs, establishing that they will now not only apply to PSPOCPs, but also to PSPs in general (including administrators of Transfers 3.0).
Measures for PSPs related to Tax on Debits and Credits
Clarifications are made, the Transfer 3.0 scheme is introduced, and registration deadlines are extended
Through Decree 796/2021 of November 16th, the National Government established some clarifications concerning the treatment of the Tax on Debts and Credits.
On the one hand, it exempted from tax the accounts used by administrators and other participants (e.g. acquirers and operators) of the Transfers 3.0 scheme, except for their own transactions.
On the other hand, the Decree clarifies that, in the cases of companies (other than SMEs) that withdraw or deposit “cash” through collection service companies, these collection companies must communicate the fact of the entities or PSPOCPs where the accounts are linked, so that the tax withholding is practiced. On the contrary, SMEs are exempted from the tax for movements related to withdrawals or deposits of cash.
The Decree also specifies that the PSPOCPs must pay the tax on their own movements related to the payment of taxes.
Finally, General Resolution No. 5089/2021 of the Federal Administration of Public Revenues (AFIP), extended until January 15th, 2022, the term for existing PSPCOPs and collection services to complete the registration with the Registry that allows enjoying the different exemptions. This can be important news, especially for those payment service providers that have not yet obtained their registration with the BCRA.
Elimination of tax benefits for the crypto ecosystem
They are excluded from the exemptions to Tax on Debits and Credits
The same Decree No. 796/2021 that we cited above, expressly provided that the exemptions from the Tax on Debits and Credits will not be applicable in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation, and/or any other operation on crypto assets, cryptocurrencies, digital currencies, or similar instruments, in the terms defined by the applicable regulations.
This measure takes place in a context where recent information also emerged that the BCRA would have required banks to prevent crypto exchange companies from interoperating with CVUs, as well as other information that the AFIP has been apparently requesting from Simplified Taxpayers, who operate with crypto assets, to justify their income.
New information obligation for PSPOCPs
They must comply with the BCRA’s “Regime Database” Information Regime
Through Communication “A” 7387 of October 29th, the BCRA established that, as of December 1, the PSPOCPs will be obliged to comply with the Informative Regime “Standardize Data Base”.
In this sense, the PSPOCPs must begin to inform the BCRA of the name of the individuals and/or legal entities with whom they establish contractual relationships related to the operations they carry out (with the exception of exchange operations), either occasionally or permanently.
This information must be submitted for the first time in full with certain minimum data. Then, it must be updated monthly, in which case the PSP must inform: (i) the new clients; (ii) unsubscribed customers, and (iii) changes in the postal code of changes of address of previously informed customers.
Submissions must be made on the tenth business day of the month following the one to which the data refers.
Special Report for Non-Banking Credit Providers
The BCRA regulated an annual filing requirement
Through Communication “A” 7368 dated September 17th, the BCRA established a new annual requirement regarding the special report that Non-Banking Credit Providers must present with respect to compliance with their regulations.
The annual requirement will close in December of each year, expiring its presentation every February 20th. Exceptionally, for the current year, a review report was also provided for as of June 30th, 2021, whose original expiration date was October 29th, but which was extended until November 29th, by Communication “A” 7382.
Technical security requirements for pre-approved loans
To prevent fraud in online credit operations
Continuing with the measures already issued to reinforce security regarding the granting of online loans by financial institutions, the BCRA issued Communication “A” 7370 on September 24th, through which it established the new minimum security requirements for the validation of these operations.
Thus, it is provided that, for the authorization of a pre-approved loan, the financial institution must reliably verify the identity of the person using the financial services involved, using positive identification techniques. Likewise, it must be previously verified that the contact points indicated by the user of financial services have not been modified recently. Once the identity of the user has been verified, the entity must inform him/her that the loan is approved and that, if there are no objections, the amount will be credited to his account in the following 2 (two) business days. This accreditation period may be reduced in the event that the user provides its consent through reliable means.
The financial institution may be exempted from complying with these requirements to the extent that (i) it confirms the identity of the user through biometric solutions with proof of life, or (ii) assumes the obligation to cancel the credit, return the sums debited to the user and cancel the effects on credit bases, upon the presentation of a police report by the user within 90 days of the expiration of the first installment of the credit.
Non-present accounts for foreign tourists
It will allow them to operate with electronic payments
In order to encourage foreign tourists to in-bank the foreign currency entered into the country, the BCRA issued Communication “A” 7384 on October 28th, authorizing financial entities to open “savings accounts for tourists”, in favor of non-residents.
This account may be in Pesos and in foreign currency, it may be opened in person or remotely, and will only require the exhibition of the person’s passport or travel document, as long as he/she does not reside in countries or territories blacklisted by the FATF Recommendations.
Deposits in Pesos may be used to make payments in merchants in the country, either through the use of a debit card (if any) or digital banking.
Deposits in a foreign currency will only be admissible if they come directly from an account that the holder maintains abroad, or through a cashier deposit -if the holder proves to have an account in his country of origin-, and only for up to US$5,000.
The accounts will not be able to operate investments, term deposits nor will they be able to receive transfers from third parties. Likewise, they must be closed once the tourist’s stay is over.
As an alternative to opening an account, entities may issue tourists a prepaid card for purchases in Pesos in stores in the country.