VCB Resolution – Accounts in Foreign Currency
Resolution No. 13-02-01 (the “Resolution”), issued by the Venezuelan Central Bank (“VCB”), was published in Official Gazette No. 40,109 of February 13, 2013. Said Resolution establishes that without prejudice to the provisions of VCB’s Resolution No. 12-09-01, dated September 4, 2012, the natural persons of legal age residing in the national territory and the legal persons domiciled in the country may hold funds in foreign currency in call deposit accounts or time deposit accounts, with universal banks, deriving from transfers ordered from abroad on account of remittances made by relatives residing abroad, pensions and retirement funds accrued abroad, allowances paid by international agencies, provision of professional services abroad, or income charged for transactions of investment in financial instruments. Likewise, the Resolution establishes that the aforesaid natural persons may make deposits in cash of up to a maximum monthly amount of Two Thousand Dollars of the United States of America (US$ 2,000.00) or its equivalent in another currency, in call deposit accounts or time deposit accounts, with universal Banks governed by the Law of Partial Amendment to the Law of Institutions of the Banking Sector, deriving from any of the items indicated in Article 1 of the Resolution.
Also, the legal persons domiciled in the country may hold, in call deposit accounts or time deposit accounts, with universal banks governed by the aforesaid Law of Partial Amendment to the Law of Institutions of the Banking Sector, funds in foreign currency derived from transfers ordered from abroad, income paid by reason of investments in financial instruments or on account of the provision of loans and other forms of external financing of the private sector. Likewise, they may hold, in call deposit accounts or time deposit accounts, funds in foreign currency intended to further the productive sector of the country.
The Resolution determines that the universal banks governed by the Law of Partial Amendment to the Law of Institutions of the Banking Sector authorized to receive deposits in foreign currency according to article 2 of Exchange Agreement No. 20 of June 14, 2012, may require that their clients provide all of the information deemed necessary to determine that the nature of the deposits and transfers received corresponds to any of the transactions referred to in Article 4 of the Resolution. Otherwise, and in the cases in which the cause of origin may not be sufficiently determined, the foreign currency shall be subject to mandatory sale to the VCB, within two (2) business days following the date of receipt.
Finally, the funds derived from the clearing of transactions assigned up to February 8, 2013, through the System of Transactions with Securities in Foreign Currency (Sistema de Transacciones con Títulos en Moneda Extranjera - SITME), may remain in said accounts for a period of up to twelve (12) months, in the case of natural persons, and three (3) months, in the case of legal persons, after the date of the relevant clearing of the transaction, in order to which the universal banks must have the suitable mechanisms for the relevant follow up. Likewise, said banks must inform the VCB, within fifteen (15) bank business days following the end of the relevant period of the existence of funds in said special call deposit accounts, in order for it to authorize just one time and for an equal period of time the maintenance of the balance of the relevant transaction.
The Resolution repeals the Sole Paragraph of Article 2 and Articles 8 and 10 of Resolution No. 12-09-01 of September 4, 2012. It became effective upon its publication in the Official Gazette.
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“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.”