The Ordinary Official Gazette number 80 of the Republic of Cuba released two resolutions issued by the Central Bank of Cuba with respect to the licenses granted to Financial Corporation, S.A. and Network Payment Services S.A. (REDSA by its Spanish initials), both Cuban non-bank financial institutions.
The new legal norm expands the powers of the Financial Corporation, S.A., at the same time that it enables the processing of remittances through REDSA.
Resolution 150 clarifies that Financial Corporation, S.A., constituted by Public Deed No. 2192 dated July 13, 2000, revised the Specific License under which it operated. At this point, it has been determined to cancel the license granted and accord a new one to Financial Corporation, S.A. "in order to develop all those activities foreseen for non-bank financial institutions in accordance with the provisions of article 14 of Decree-Law No. 362 and that they are compatible with their corporate purpose."
Article 14 of the aforementioned Decree-Law allows:
Provide services and financial products of microcredit, financial leasing of goods, movable and immovable property; management of collection or factoring portfolios or accounts payable; investment fund management, among others; carry out trust operations; provide asset management services; and any other operation and service of non-bank financial institutions, in accordance with financial practice and current legislation.
The finance company has a period of 30 working days, from the publication of this Resolution, to carry out all the legal formalities that may proceed in order to adapt its legal documentation to what the new license authorizes.
Meanwhile, Resolution No. 152/2020 refers that Network Payment Services S.A. (REDSA) requested the BCC to modify its license, in order to include among its activities, the management and processing of family remittances from abroad to Cuba.
Executives of the Central Bank of Cuba clarified to Cubadebate that this measure is not related to the suspension of remittances through Western Union or to the measures announced against FINCIMEX by the United States government. "FINCIMEX continues to process remittances from other destinations."
“The measure approved to REDSA is a provision for the future, which does not take effect immediately; it enables this institution to manage and process family remittances from abroad to Cuba ”.
Also, Network Payment Services S.A. (REDSA) has a period of thirty (30) working days from the notification of this Resolution, to carry out all the legal formalities that may proceed and adapt its legal documentation to what is authorized in this new license.
What activities can REDSA develop?
Act as a processing center for transactions carried out with electronic means of payment, in accordance with the provisions of the Central Bank of Cuba.
Provide, manage and monitor electronic payment channels.
Administer, control and manage the ATM network.
Carry out interbank clearing processes for operations carried out through the Control and Monitoring Center for Electronic Payment Means (CCMPE by its Spanish initials).
Process and send the data for the reconciliation of operations carried out with RED cards to national issuing institutions or entities.
Process and send the data for the reconciliation of operations carried out with RED cards to the national institutions or entities.
Represent the members of the RED Group in front of other issuing institutions and providers of national and international payment services.
Design, print the design and personalize the plastic cards of the issuing institutions or entities.
Generate the personal identification number (PIN) associated with plastic cards, in printed or electronic format.
Attend, process and resolve, as appropriate, claims for operations that are processed through the Electronic Payment Means Control and Monitoring Center (CCMPE).
Participate in the projection and installation of ATM networks.
Dictate the procedures that link the Electronic Payment Means Monitoring Control Center (CCMPE) with the institutions authorized to issue RED cards.
Manage and process family remittances from abroad to Cuba.