General Rules of the Complementary System of Foreign Currency Administration (SICAD)
An Official Notice of the Venezuelan Central Bank (“VCB”) was published in Official Gazette No. 40.201 of July 4, 2013. It corrects, due to an error in the form, Resolution No. 13-07-01 (the “Resolution”) of July 2, 2013, whereby the General Rules of the Complementary System of Foreign Currency Administration (“Sistema Complementario de Administración de Divisas”-“SICAD”) were issued. The most important aspects of the Resolution are the following:
The special auctions carried out through the SICAD will be governed by the provisions of the Resolution and by what is established in the relevant calls, form letters, manuals, instructions, and other rules issued by the VCB to that end. Unless otherwise prescribed, only the natural and legal persons residing or domiciled in the national territory, as applicable, may make bids for the acquisition of foreign currency or securities denominated in foreign currency through the SICAD.
In the case of transactions of sale of foreign currency or securities denominated in foreign currency by the private sector through the SICAD, they may be made by any natural or legal person, even if they do not reside or are not domiciled in the country, provided that they are the lawful holders of the positions in foreign currency or of the instruments subject-matter of the transaction.
The minimum and/or maximum amount per bid of purchase or sale of foreign currency or securities denominated in foreign currency through the SICAD will be determined by the calls to that end published for each act.
Likewise, the Resolution establishes that the persons interested in making bids for the acquisition or sale of foreign currency or securities denominated in foreign currency, through the SICAD, must be previously registered with the Registry of Users of the Complementary System of Foreign Currency Administration (“Registro de Usuarios del Sistema Complementario de Administración de Divisas” – “RUSICAD”).
The transactions of purchase and sale of foreign currency or securities denominated in foreign currency through the SICAD may only be made through Universal Banks, Commercial Banks, and Savings and Loans Institutions, provided that they have been authorized to act in said system (the “Authorized Institutions”).
In addition, in the case of special auctions of foreign currency or securities denominated in foreign currency in which the sale offer is made by natural and legal persons, for purposes of processing the transactions through the SICAD, the Authorized Institutions must verify the holding of the foreign currency or securities, as applicable, by the party interested in making the relevant sale transaction. It is also established that the Authorized Institutions may not grant any type of financing to natural persons for the purposes prescribed in the Resolution and must inform their clients of the result of their applications for purchase or sale.
The natural or legal persons that wish to make transactions of purchase or sale of foreign currency or securities through the SICAD may only use one Authorized Institution during each calendar month and they must have been clients of said Authorized Institutions for at least ninety (90) calendar days. The Authorized Institution may be different from the one selected to act as authorized exchange operator for the purposes of making transactions before the Foreign Currency Administration Commission (“CADIVI”).
The Resolution establishes that the natural persons residing in the country may acquire foreign currency or securities through the SICAD in the following cases:
Consumption expenses for trips abroad.
Expenses for studies abroad.
Expenses related to health recovery.
Payment of goods required for the provision of professional services.
The legal persons domiciled in the country may acquire foreign currency or securities through the SICAD for up to a maximum amount to be determined in the relevant calls.
Failure to comply with the provisions of the Resolution will be penalized in accordance with the law. Breach by the natural or legal persons that apply for transactions of acquisition of foreign currency or securities denominated in foreign currency through the SICAD will result in their exclusion from the RUSICAD. The reincorporation of the persons/entities subject to this measure may only be authorized by the Board of Directors of the VCB.
The Resolution became effective upon its publication in the Official Gazette. The doubts arising out of the application, interpretation, and scope of the Resolution will be settled by the Board of Directors of the VCB. The persons registered with the Registry of Users of the System of Transactions with Securities in Foreign Currency (“Registro de Usuarios del Sistema de Transacciones con Títulos en Moneda Extranjera” – “RUSITME”) regulated by the VCB’s Resolution No. 11-11-02, dated 11-3-2011, will be understood to be registered as a matter of law with the RUSICAD, to the exclusion of the persons penalized by the competent authorities for foreign exchange irregularities or crimes.
In order to access the Resolution, please click here.
Should you have questions/comments or require further information, please contact the person in charge of your account via email.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”