Approval of the regulations on centralized registry entities for electronic bills of exchange and promissory notes in Costa Rica

On Tuesday, February 8, it was announced the approval of the SUGEVAL 21-23 agreement “Regulation on Centralized Registry Entities of Electronic Bills of Exchange and Promissory Notes”, which will be in force one (1) month after its publication in the official gazette La Gaceta. This Regulation complements the Law on Electronic Bills of Exchange and Promissory Notes No. 10069, in force since December 2021, and will allow the registration of the Centralized Registries, entities created by said Law to provide the administration service, through book entries, of electronic bills of exchange and promissory notes, as established in the Law.

The regulation regulates the process of prior authorization by SUGEVAL and the operation of the Centralized Registries, as well as the organization and operation of the identification systems and the control of electronic promissory notes and bills of exchange, represented by means of electronic annotations. In such sense, its main objective is to provide a reliable system for the registration of electronic bills of exchange and promissory notes, by means of annotation in a Centralized Registry, for which purpose the formal and patrimonial requirements to be complied with by the entities that wish to be authorized to carry out such activity are defined, including the already existing Central Securities Registries.

Likewise, the requirements regarding human resources and adequate technological and security infrastructure are established. It includes provisions on the organization and operation of the Centralized Registries; the identification systems and control of electronic promissory notes and bills of exchange represented by means of electronic annotations; as well as the technical requirements of reliability, continuity and security; requirements for interconnection, as well as the relations and communications of the entities in charge of such registries with issuers and the stock exchanges; the definition of the amount of the economic contributions to the regulator and the compliance with the obligations regarding the prevention of money laundering and financing of terrorism. More operational aspects are also regulated, such as the content and form of the electronic certifications issued by the Centralized Registry, the process of dematerialization of the bill of exchange or promissory note, among others.

On the other hand, several amendments to other prudential regulations are included in order to include the Centralized Registries as subjects obliged to comply with them, such as Agreement CONASSIF 15-22 Regulation on suitability and performance of members of the management body and senior management of supervised entities and companies, Agreement CONASSIF 4-16 Regulation on Corporate Governance, Agreement CONASSIF 5-17 General Regulation on Information Technology Management and Agreement SUGEVAL 11-09 Regulation on Risk Management. Modifies and adds paragraph d) to Article 16 Capital requirement for operational risks of Agreement SUGEVAL 11-09 Risk Management Regulation, in order to establish the capital requirement for the volume of bills of exchange and electronic promissory notes represented by book entry, which will correspond to 0.1% of the aggregate amount of obligations in these securities at the end of each month, which have not yet reached their maturity date.

We will soon refer in greater detail to the content of the Regulation and its impact on the country’s financial and credit activity.

See publication in the following link.