Authorizes The Government To Review The Legal Framework Of The Centralization Of Service Credit Risks, Contained In Decree-Law No. 29/96, April 11

Original Language Title: Autoriza o Governo a rever o enquadramento legal do Serviço de Centralização de Riscos do Crédito, constante do Decreto-Lei n.º 29/96, de 11 de Abril

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334277624445334d4331594c6d527659773d3d&fich=ppl170-X.doc&Inline=false

1 PROPOSAL of law n. º 170/X explanatory memorandum the centralization of service credit risks enshrined in Decree-Law No. 29/96, on April 11, has come to achieve its objectives, responding to the need of credit institutions and financial corporations to assess properly the risks of its operations. Improving the effectiveness of this service and the quality of the centralized information requires, however, to ensure the correct identification of the beneficiaries of credit. The mere fact that an entity end abbreviate the name of a client and the other not, being transmitted different identification documents, can result in a deficient aggregate liabilities of that customer's credit and thus impair the achievement of the objectives of the centralization of service credit risks. It is therefore necessary, for safety and accuracy of the information, establish the possibility of the Bank of Portugal get the Directorate-General of taxes, by electronic means, the names associated with the tax identification numbers of the beneficiaries of credit, transmitted by entities participating, solely for verifying the consistency of information; Is justified, yet, the prediction of a sanctions regime of offences and regulations issued pursuant thereto of the Bank of Portugal on the centralization of credit responsibilities.

Being concerned that falls in title II of the Constitution of the Portuguese Republic for rights, freedoms and guarantees, the relative competence of the Assembly of the Republic, so that the Government can review the Decree-Law n. º 29/96, of 11 April, replacing him with another degree, among other adaptations and updates, consecrate the purposes behind set out, it is necessary that the Assembly of the Republic you check out legislative authorization to that end. 2 like this: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following proposal of law: article 1 subject-matter Is the Government allowed to review the legal framework of the centralization of service credit Responsibilities, contained in Decree-Law No. 29/96, of 11 April, replacing him with another degree to adapt , update and consecrate the purposes set out in the following article.

Article 2 purpose and 1 extension-on the use of the legislative authorisation conferred by article above, can the Government: a) Devote the possibility of the Bank of Portugal get the Directorate-General of taxes, by electronic means, the names associated with the tax identification numbers of the beneficiaries of credit, transmitted by entities participating, solely for verifying the consistency of information; b) Determine that the derogation from the duty of secrecy to the Bank of Portugal and the Directorate-General of taxes shall be required, for the strict purposes provided for in this article, shall not affect your compliance in the most, in particular for the purposes of protection of personal data. (c) provide for a regime of sanctions) infringements of the obligations arising out of the legal framework of the centralization of service credit Responsibilities and regulations established by the Bank of Portugal on the centralization of credit, in which responsibilities are covered all participating entities, articulating it, as this is necessary in view of the matter, with the provisions of law No. 67/98 , of 26 October and fixing the frames of the fines corresponding to the mere social ordering illegal until a maximum limit of € 750,000.00. 3 2-communication between the Bank of Portugal and the Directorate-General of taxes referred to in subparagraph (a)) of the preceding paragraph covers only persons transmitted by entities participating credit and performs with cessation of the obligations of professional secrecy to which both entities are subject.

Article 3 Duration the present legislative authorization lasts for 180 days.

Seen and approved by the Council of Ministers of 8 November 2007 Prime Minister the Minister of Parliamentary Affairs Minister Presidency 4 Centralization service of credit risks enshrined in Decree-Law No. 29/96, on April 11, has come to achieve its objectives, responding to the need of credit institutions and financial corporations to assess properly the risks of its operations. Improving the effectiveness of this service and the quality of the centralized information requires, however, to ensure the correct identification of the beneficiaries of credit. The mere fact that an entity end abbreviate the name of a client and the other not, being transmitted different identification documents, can result in a deficient aggregate liabilities of that customer's credit and thus impair the achievement of the objectives of the centralization of service credit risks. It is therefore necessary, for safety and accuracy of the information, establish in law the possibility of the Bank of Portugal enter the tax identification Number file, managed by the Directorate-General of taxes, for verification of the identification of the beneficiaries of credit. As a result of the decision taken by the European Central Bank to include bank loans in the list of assets received by the national central banks as collateral for monetary policy operations and intraday credit, it is also necessary to extend the scope of use of the information supplied by the participating entities, in order to allow the assessment of the risks involved in the acceptance of bank loans as collateral for operations and centralized registration of these guarantees. Expressly provides for a regime of sanctions breaches of the obligations under this Ordinance, in which are subject to all participating entities. Take advantage to change the legal designation for Central Credit responsibilities, with the acronym CRC, and to clarify the scope of the transactions covered by the centralization. Was heard the National Commission for data protection and the Bank of Portugal.

So: the use of legislative authorization granted by law no [...] of [...], and pursuant to points (a)) and b) of paragraph 1 of article 198 of the Constitution, the Government decrees the following: 5 Article 1 subject-matter


1-the Central Responsibilities of credit (CRC), ensured by the Bank of Portugal, in terms of your organic law, adopted by law No 5/98 of 31 January, concerns: the actual responsibilities Center) or potential credit granted by entities subject to the supervision of the Bank of Portugal or any other entities that, under any form, granting credit or perform similar operations; b) disclose information centered at participating entities; c) Gather information necessary for the evaluation of the risks involved in the acceptance of bank loans as collateral in connection with monetary policy operations and intraday credit. 2-Central Credit Responsibilities includes information received relating to actual or potential liabilities arising from credit operations, in any form or modality, that are benefiting natural or legal persons, resident or non-resident in the national territory. 3-the preceding paragraphs shall not affect the obligations of treatment or disclosure of information provided for in other legislation.

Article 2 participant 1-participating agencies are the entities subject to the supervision of the Bank of Portugal that grant credit, branches of credit institutions based abroad and activity in Portugal and other entities designated by the Bank of Portugal that somehow engaged in credit functions or activity with this directly linked. 2-The entities participating in the list published on the website of the Bank of Portugal on the Internet. 3-it is the Bank of Portugal to establish regulatory standards and procedures that is convenient for the proper functioning of the credit Liabilities and disclose them for participating entities. 6 4-to information disclosed by the Bank of Portugal contained Liability credit Center, it is the responsibility of the entities that have passed, and only these proceed to your amendment or rectification, for your initiative or at the request of its customers, always occurring errors or omissions. 5-all relate to the information received from credit Responsibilities, the entities referred to in the preceding paragraph shall be subject to the rules relating to professional secrecy contained in the general scheme of credit institutions and financial corporations, approved by Decree-Law No. 298/92 of 31 December.

Article 3 Duty of communication 1-The participating entities are obliged to provide the Bank of Portugal, in accordance with the rules adopted, all the information relating to actual or potential liabilities arising from lending operations in Portugal, referred to in the following paragraph and, when required by the Bank of Portugal, all the details of the actual or potential liabilities arising from lending operations abroad by their branches abroad. 2-Each participating entity is obliged to communicate to the Bank of Portugal the balances at the end of each month, of the responsibilities arising from the following transactions of credit granted in Portugal, the resident or non-resident in the national territory, by their head offices, branches, agencies and branches, including those installed in the free zones of Madeira and the island of Santa Maria: a) active Operations with natural or legal persons , to communicate on behalf of the direct beneficiary of credit and guarantees given and received, on behalf of the potential debtor, including, in these operations, the following situations: i) The unused amounts for any kinds of irrevocable credit lines contracted, including credit cards, to communicate on behalf of direct beneficiary, constitute potential responsibilities; II) the amounts of the operations offset, to communicate on behalf of direct beneficiary, constitute actual responsibilities; 7 iii) the total or partial use of emigrant savings loans granted under the legislation in force, or any modification of the principal outstanding; IV) the guarantees provided by participating entities to ensure compliance with lending operations by other participating entities; v) the amounts of the sureties and guarantees provided in favour of the end entity, to communicate on behalf of the guarantors, from the beginning of the loan agreement, up to the limit of the guarantee; b) Credits taken using, communicating on behalf of participants, from the time of completion of the operation and should be reclassified in defaulted credit has elapsed after the expiration of the invoices or commercial paper securities, the period of time defined in the Bank's statement of Portugal; c) Credits taken without recourse, to communicate on behalf of debtors and with knowledge of these, for which has elapsed after the expiration of the invoices or commercial paper securities, the period of time defined in the Bank's statement of Portugal; d) credits assigned in securitisation, the report by the assignor on behalf of the beneficiary; and Credits assigned to mortgage bonds) or obligations on the public sector, the report by the credit institution issuer of bonds, on behalf of the direct beneficiary of the credit. 3-monthly communications responsibilities to be carried out by participating entities for the balances at the end of each month, must be forwarded to the Bank of Portugal within the following time limits, from the beginning of the month following the month to which they relate: responsibilities) 11 working days, to the communications to be made until 31 December 2010; b) 6 working days, to the communications to be made after 31 December 2010. 4-are not covered by the centralisation, should not be disclosed: a) transactions between resident monetary financial institutions; b) transactions between participating entities and the Bank of Portugal; c) debts forgiven by the participating entities; 8 d) the value of the credit granted in discount securities which have been the subject of reform, which should only be reported the loans granted in discount of the new title.

Article 4 data interconnect


1-Without prejudice to the obligations of communication by participating entities of beneficiaries ' identification data complete and correct credit, the Bank of Portugal you can access, for communication, the tax identification Number file, managed by the Directorate-General of taxes, to verify your accuracy. 2-communication between the Bank of Portugal and the Directorate-General of taxes has only intended to verify coincidence between the beneficiary's identification data, including the tax identification number, transmitted by the participating entities, and the name and tax identification number appearing in the file of the Directorate-General of taxes. 3-the derogation from the duty of secrecy to the Bank of Portugal and the Directorate-General of taxes are bound to the strict purposes provided for in this article, shall not affect your compliance in the most, in particular for the purposes of protection of personal data.

Article 5 Purpose of information 1-the information contained in the Central Responsibilities of credit can be used for the following purposes: a) centralization of credit responsibilities; b) supervision of credit institutions and financial corporations; c) analysis of the stability of the financial system; d) conducting monetary policy operations and intraday credit; and statistical Compilation). 2-the dissemination of information is without prejudice to compliance with the duty of banking secrecy that protects the individual identification of persons or institutions and the respective operations 9.

Article 6 Data Communication 1-The participant can apply to the Bank of Portugal be given knowledge of the information recorded in credit Responsibilities relating to natural or legal persons who have requested them credit. 2-Are conditions of legitimacy of the request for information being the applicant party creditor of the natural or legal person concerned, or, not, have her creditor received request for granting credit. 3-the Bank of Portugal can regulate the conditions of legitimacy and attach supplementary conditions. 4-the Bank of Portugal may establish and charge a importance of contrast for the information you provide.

Article 7 restrictions on disclosure of information centered 1-the information provided by the Bank of Portugal to participating entities shall not contain any indication of the location in which the credits were granted or of the entities that have granted. 2-Such information is exclusively intended for the participating entities, and not your transmission, in whole or in part, to third parties.

Article 8 international co-operation 1-1-Portugal Bank can, under agreements of cooperation, the exchange of information about credit responsibilities with the bodies of the Member States of the European Union or from any other countries responsible for the centralization of these responsibilities. 10 2-cooperation referred to in the preceding paragraph, when not the result of statutory standards of Community law or International Convention, can be established through mutual information agreements concluded by the Bank of Portugal with these bodies or set case-by-case basis. 3-the Bank of Portugal can only provide confidential information to foreign agencies from benefiting from guarantees of secrecy at least equivalent to those laid down in the law. 4-the duty of secrecy shall not prevent the Bank of Portugal, in the performance of its tasks, use the confidential information received pursuant to this article to the purposes specified in article 4 article 9 Penalties 1-Constitutes a misdemeanour punishable by a fine of € 750.00 to € 750,000.00 the breach of the obligation, laid down in paragraphs 1 to 3 of article 3 , and the breach of the duty of secrecy, provided for in paragraph 5 of article 2, as well as the communication of incomplete or inaccurate information. 2-Constitutes a misdemeanour punishable by a fine of € 750.00 to € 750,000.00 violation of paragraph 2 of article 7 3-with regard to the administrative offences provided for in paragraph 1, can still be applied to the offender the accessory penalty of publication by the Bank of Portugal, the final punishment. 4-the publication is made in the Official Gazette or in the official bulletin of the Bank of Portugal or in place of the Bank of Portugal on the Internet www.bportugal.pt. 5-a misdemeanour procedures initiated pursuant to paragraph 1, apply article 201 to 209 and 213 to 232 of the general scheme of credit institutions and financial corporations. 6-a misdemeanour procedures established pursuant to paragraph 2, shall apply the provisions of section II of Chapter VI of law No. 67/98 of 26 October.

11 article 10 fulfilment of omitted obligations where the offence resulting from the omission of a duty, the application of the penalty and the payment of the fine does not exempt the offender from your accomplishment.

Article 11 set 1-Standard is revoked Decree-Law No. 29/96, of 11 April. 2-until the establishment of new rules, maintain in force the current regulatory standards.

Seen and approved by the Council of Ministers of the Prime Minister and State Minister of finance, the Minister of Justice