2018/2019 Edition of the Global Regulatory Update

Treasury and Trade Solutions 66 have a two-year period to issue all the secondary rulings, but different topics require different periods (6-months, 1-year and 2-years). How Citibanamex is influencing Secondary Legislation Citibanamex is actively engaging in the secondary legislation process and Citi’s Group Government Affairs team in Mexico is coordinating those efforts. Citibanamex is leading the FinTech Committee of the Mexican Banking Association (ABM), where we are reviewing CNBV’s legislation-drafts of the topics mentioned above. GGA Mexico is coordinating with different areas of Citibanamex (Legal, Digital, TTS, AML, Citi FinTech, etc.) to process comments and observations effectively. We are having weekly or bi-weekly meetings with the ABM to review the observations of all banks. It is also important to mention that the regulator wants to accelerate the issuance of API standards and Citibanamex is helping them to do so in different ways: • Citibanamex is participating in the Open Banking Working Group organized by The FinTech Hub, C-Minds and the Open Data Institute (ODI). This working group includes financial institutions’ associations (banks, insurance companies, small lenders etc.) and FinTech associations; it seeks to advice the regulator on the design of API standards, and Citibanamex is pushing for the use of international standards and global best practices. • Citibanamex is also collaborating with the Office of the Presidency to aid the CNBV in defining the secondary legislation of the Fintech Law. More specifically, the Digital Area of the Office of the Presidency together with some of the biggest banks in the country is launching a controlled pilot in which Citibanamex is taking part. The scope of the pilot is to use the Open Banking standard created in the United Kingdom to show that an open API is an important factor in fostering innovation and growth across Mexico. Citibanamex built three different APIs that contain public information and seeks to empower third parties to create new solutions. These APIs use the nomenclature, technical specs and rules described in the Open Banking Standard. The APIs mentioned are: ATM Locator, Branch Locator and Commercial Credit Card information. The next step for this pilot is to test the APIs created by different banks and let banks, FinTechs and solo developers in a controlled environment such as a Hackathon to create their own solutions. After the pilot ends, the government will deliver a document with the insights and experiences obtained through this project. In terms of next steps, the CNBV will put forward best practices, lessons learned and ideas to define the second part of the aforementioned law.