New money measures

Central Bank issues new regulations for brokerage firms and financial institutions

The Central Bank issued a new set of Intermediary Circulars in order to regulate the conduct of brokerage firms and financial institutions.

Intermediary Circular 10788 modifies Basic Circular 6213, issued in 1996, and Intermediary Circular 10789 modifies Basic Circular 7136, issued in 1998.

The amendment prohibits brokerage firms and financial institutions from shipping bank notes, metal alloys and parts, and coins. It also prohibits them from engaging in any activity not directly related to their core business.

The circulars ban brokerage firms and financial institutions from receiving money from their clients except through checks or transfers. Financial institutions would still be able to receive cash, totaling $10,000 per client per month, so that clients could pay dues or loans extended by the financial institutions, or to conduct secondary services that do not include financial intermediation.

Brokerage firms and financial institutions are prohibited from transferring money in excess of $1,500 on behalf of their clients to third parties, whether to, from or within the country.