{"id":5848,"date":"2016-09-14T09:47:06","date_gmt":"2016-09-14T09:47:06","guid":{"rendered":"http:\/\/progresomicrofinanzas.org\/en\/?p=5848"},"modified":"2017-11-17T13:58:09","modified_gmt":"2017-11-17T13:58:09","slug":"reforming-electronic-money-management","status":"publish","type":"post","link":"https:\/\/www.fundacionmicrofinanzasbbva.org\/revistaprogreso\/en\/reforming-electronic-money-management\/","title":{"rendered":"Reforming electronic money management"},"content":{"rendered":"
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At the end of July, Ecuador\u2019s Council for Monetary & Financial Policy and Regulation published four resolutions regulating the management of electronic money, applicable to Ecuadorian financial institutions.<\/span><\/p>\n

Resolution 252<\/b> enables all financial institutions servicing money-transfers from abroad to an electronic-money account (EMA) held by a natural person in Ecuadorian territory through the Ecuadorian Banco Central del Ecuador (BCE), to use the Electronic Money system.<\/span><\/p>\n

The regulation also enables natural and legal persons with active EMAs to manage their payments, either online or pre-programmed by the services or products contracted, to pay taxes, transfer funds between one or several accounts in financial institutions or between different EMAs, etc.<\/span><\/p>\n

Furthermore, it has set new fees for withdrawing money, making transfers, handling payments and charges, wire transfers, changing security parameters and using the platform for commercial management.<\/span><\/p>\n

By virtue of <\/span>Resolution 258<\/b>, transactions may be initiated from one or several accounts in financial institutions or EMAs to other accounts using mobile devices. Electronic accounts may also be opened on a mobile phone or via Ecuador\u2019s central bank website.<\/span><\/p>\n

This resolution also contains a new chapter on the prevention of money laundering and financing of terrorism through electronic money transactions, by virtue of which those natural or legal persons that want to take part in the electronic money system need to provide information to the central bank on their financial activity, their address, compliance with tax obligations, evidence that their financial statements have been submitted to the relevant authority, etc. This information must be updated according to the schedule defined by the central bank\u2019s General Management. \u00a0<\/span><\/p>\n

Resolution 259<\/b> recognises Electronic Money System accounts as forming part of the Ecuadorian central bank\u2019s interbank payment system.<\/span><\/p>\n

Finally, <\/span>Resolution 260<\/b> introduces the \u201c<\/span>Regulation for implementing the Third Transitional Provision of the Organic Law for Solidarity and Civic co-responsibility in the rebuilding and recovery of the areas affected by the earthquake of 16<\/span><\/i>th<\/span><\/i> April 2016<\/span><\/i>\u201d. This gives Ecuador’s central bank, the BCE, a maximum period of 12 months to offer institutions operating within in the country\u2019s financial system a subsidy to cover the cost of installing mobile banking systems that can make transactions using the BCE\u2019s Electronic Money Platform. \u00a0<\/span><\/p>\n

The subsidy will be granted provided the following <\/span>conditions<\/b> are met:<\/span><\/p>\n