The Central Bank of Argentina issued Communiqué "A" 5981, effective as of June 3, 2016, which simplifies the procedure for payment of reinsurance premiums abroad, even for those payments whose approval was pending.
Communiqué "A" 5981 (the "Communiqué 5981"), issued by the Central Bank of Argentina (the "Central Bank") on June 2, 2016, eliminates the requirement imposed by Communiqué “A" 5377 in 2012 on the need to present a certificate from the Argentine Superintendence of Insurance (the "SSN") to access the Foreign Exchange Market ("MULC") to pay reinsurance premiums abroad. Communiqué 5981 allows transfers to the foreign reinsurer or foreign reinsurance intermediary appointed by the reinsurer, an appointment which, in principle, should meet the requirements of Annex III of Resolution No. 38.595/2014 SSN.
In 2014 the SSN had issued Resolution No. 38.595/2014 establishing the approval process of outgoing transfers, which had to be met by entities wishing to obtain the certification to make payments of reinsurance premiums. For more information on the previous regime, modified by Communiqué 5981, see "New Legal Framework for the Authorization of Payment of Reinsurance and Retrocession Premiums" in Marval News of September 30, 2014.
Following the new Communiqué 5981 issued by the Central Bank, on June 3, 2016 the SSN issued its own Communiqué No. 5192, by which it expressly provides that the intervention under Resolution No. 38,595/2014 was deemed unnecessary for both new payments and for payment orders that were still pending. It added that, in due course, the SSN would proceed to make the necessary adjustments to Resolution No. 38,595/2014 as well as to determine the appropriate information requirements.
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