Nonbanks

External Financial Institutions

External Financial Institutions (EFI) are entities that perform intermediation transactions solely between supply and demand for securities, cash or precious metals located outside the country (commonly called banking activities).
According to the legal and regulatory framework (Decree 381/89), EFIs can operate exclusively with non-resident customers, with whom they can carry out all financial intermediation activities and related services, including collecting demand and current account deposits in foreign currency and authorize the issuance of checks from those accounts.

These entities require Authorization from the Executive Power to operate for reasons of legality, timeliness and appropriateness, with prior favorable report from the Central Bank of Uruguay. Additionally, they require authorization from the Superintendency of Financial Services to start operating in the financial system. See requirements for approval and permission to operate (Art. 14 et seq of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules RNRCSF in Spanish).

In these cases, supervision is primarily aimed at protecting the stability and solvency of the entities, based on the systematic and regular implementation of different supervisory mechanisms, which seek to promote entities to manage their risks in a professional way (such as the risk of being used for money laundering or terrorist financing), to prepare financial reports in a timely and consistent manner, to operate with caution and  maintain adequate compliance with regulations (capital and liquidity requirements among other). Through these procedures, it is possible to have early warnings of problems and thus company managers can take appropriate measures to solve them in a timely manner.

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of External Financial Institutions authorized to operate in the Uruguayan financial system.

Financial Intermediation Cooperatives

Financial Intermediation Cooperatives are financial intermediation institutions organized as cooperative societies that operate exclusively with their members. There are two types of financial intermediation cooperatives: those with full authorization and those with limited authorization (Retail Cooperatives).

Cooperatives with full authorization can perform the same operations as banks.

Financial intermediation retail cooperatives are authorized to operate with some restrictions related to currencies, lower credit ceilings and some non-permitted operations. These restrictions are set out in Art. 266 of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules (RNRCSF in Spanish).​

These entities require Authorization from the Executive Power to operate for reasons of legality, timeliness and appropriateness, with prior favorable report from the Central Bank of Uruguay. Additionally, they require authorization from the Superintendency of Financial Services to start operating in the financial system. See requirements for approval and permission to operate (Art. 14 et seq RNRCSF). 

In these cases, supervision is primarily aimed at protecting the stability and solvency of the entities, based on the systematic and regular implementation of different supervisory mechanisms, which seek to promote entities to manage their risks in a professional way (such as the risk of being used for money laundering or terrorist financing), to prepare financial reports in a timely and consistent manner, to operate with caution and maintain adequate compliance with regulations (capital and liquidity requirements among other). Through these procedures, it is possible to have early warnings of problems and thus company managers can take appropriate measures to solve them in a timely manner.

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of Financial Intermediation Cooperatives authorized to operate in the Uruguayan financial system.

Savings Consortium Management Companies

Savings Consortium Management Companies  (AGAP in Spanish) are companies that organize or manage groups, closed circles of savers or consortiums, whatever their legal nature or the operations they perform, whose members contribute payments to be applied reciprocally or jointly in the acquisition of certain goods or services and perform such activity exclusively.

These entities require Authorization from the Executive Power to operate for reasons of legality, timeliness and appropriateness, with prior favorable report from the Central Bank of Uruguay. Additionally, they require authorization from the Superintendency of Financial Services to start operating in the financial system. See requirements for approval and permission to operate (Art. 14 et seq of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules RNRCSF in Spanish).

In these cases, supervision is primarily aimed at protecting the stability and solvency of the entities, based on the systematic and regular implementation of different supervisory mechanisms, which seek to promote entities to manage their risks in a professional way (such as the risk of being used for money laundering or terrorist financing), to prepare financial reports in a timely and consistent manner, to operate with caution and  maintain adequate compliance with regulations (capital and liquidity requirements among other). Through these procedures, it is possible to have early warnings of problems and thus company managers can take appropriate measures to solve them in a timely manner.

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of Savings Consortium Management Companies authorized to operate in the Uruguayan financial system.

Credit management companies

Credit management companies are individuals or legal entities who are regularly and professionally involved in financing the sale of goods and services by third parties, granting credit by using credit cards, purchase orders, or other similar procedures. Also considered credit management companies are: consumer cooperatives, civil associations and other legal entities with non financial lines of business, that regularly and professionally issue purchase orders for activities under its line of business.

Large asset credit management companies are those whose total assets plus contingencies at the end of the fiscal year exceed the equivalent of 100,000 adjustable units (unidades reajustables or UR in Spanish) as per the value on the closing date.

For large asset credit management companies, supervision is primarily aimed at protecting the stability and solvency of the entities, based on the systematic and regular implementation of different supervisory mechanisms, which seek to promote an efficient payment chain and that entities manage their risks in a professional way (such as the risk of being used for money laundering or terrorist financing), to prepare financial reports in a timely and consistent manner, to operate with caution and maintain adequate compliance with regulations. Through these procedures, it is possible to have early warnings of problems and thus company managers can take appropriate measures to solve them in a timely manner.

The role of protecting financial users is also performed by responding to inquiries and denouncements. These entities do not require previous authorization to operate but must be listed in the Registry. See requirements for Registration (Art. 85 of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules RNRCSF in Spanish).

For smaller asset companies, supervision is aimed at monitoring corporate status and compliance with regulations, based on the implementation of supervisory mechanisms in response to warnings that may arise from denouncements and other information received.

See List of Credit management companies that are included in the Register of the Superintendency of Financial Services.

Representatives

Representatives of financial institutions incorporated abroad are natural or legal entities who provide advisory services and technical assistance in order to prepare, promote or facilitate business for their clients. These representatives cannot perform the following operations for themselves or their clients: financial intermediation activities, credit and exchange operations, receive sums of money, securities or precious metals from third parties, for any reason.

Registered representatives are also authorized to develop activities as Investment Advisors. These entities do not require previous authorization to operate but must be listed in the Registry.

See requirements for Registration (Art. 115 of the Central Bank of Uruguay Communications​ Compilation of Financial System Regulation and Control Rules RNRCSF in Spanish).

In these cases, supervision is aimed at monitoring the status of the entities with regards to money laundering or terrorist financing, implementing supervisory mechanisms in response to warnings that may arise from denouncements and other information that would justify action.

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of Representatives of financial institutions incorporated abroad that are included in the Register of the Superintendency of Financial Services.

Financial Services Companies

Financial Services Companies are entities which are not financial intermediaries but regularly and professionally provide the following services: currency exchange, fund transfers, payments and collections, safe deposit box rental, credit and other of similar nature.

They following are not considered financial services companies:

1. Companies that regularly and professionally provide only one of the aforementioned services.
2. Those that exclusively perform the activities permitted to foreign exchange companies or fund transfer​ companies.
3. Those that combine the services of transfers of funds with payment and collections.
4. Those whose main business is providing credit, but do not provide fund transfers abroad or foreign currency exchange services, even if they additionally offer any of the other services mentioned in the first paragraph.

These entities require Authorization from the Superintendency of Financial Services to operate for reasons of legality, timeliness and appropriateness. See requirements for authorization (Art. 92 of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules RNRCSF in Spanish).

In these cases, supervision is primarily aimed at monitoring the entities' prevention systems for money laundering or terrorist financing through supervisory mechanisms and promoting that they manage risk professionally.

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of Financial Services Companies authorized to operate in the Uruguayan financial system.

Fund Transfer Companies

Fund transfer companies are not financial intermediation entities, foreign currency exchange or financial services companies, but regularly and professionally provide the following services: receiving and sending money orders and fund transfers locally and abroad, regardless of the operating method used (electronic transfers, instructions by telephone, fax, Internet, etc.).

These entities do not require previous authorization to operate but must be listed in the Registry.

See requirements for Registration (Art. 120 of the Central Bank of Uruguay Communications Compilation of Financial System Regulation and Control Rules RNRCSF in Spanish).

In these cases, supervision is primarily aimed at monitoring the entities prevention systems for money laundering or terrorist financing through supervisory mechanisms and promoting that they manage risk professionally.

The role of protecting financial users is also performed by responding to inquiries and denouncements.

See List of Fund transfer companies that are included in the Register of the Superintendency of Financial Services.