The Payment System Roadmap defined by the Uruguayan government establishes that one of the main functions of financial activity is to provide people and companies with all the efficient ways to make and receive payments . “A solid, secure payment system with high efficiency standards facilitates economic activity and is an essential pillar of long-term growth.”
Within this framework, one of the objectives is to promote the legal and regulatory changes necessary for the operation of electronic checks as well as the digitization of checks.
The use of checks registered a drop due to the greater use of electronic means of payment , in particular interbank transfers. Although transfers function as a substitute for common checks, there is currently no electronic substitute for deferred checks, which combines features such as a means of payment and a financing instrument. This instrument has an important use at a commercial level and provides liquidity to the payment chain, by canceling the various obligations that are generated through the endorsement of checks that, at the time of collection, have the character of executive title.
Likewise, it seeks to improve the traceability of transactions, with the aim of advancing in terms of transparency, formalization and control and prevention of money laundering operations.
In this context, the Uruguayan Parliament recently approved Law No. 20,038, which creates the digital check . Said Law was approved by the Senate on November 3, 2021 and the House of Representatives on May 17, 2022, amending the Checks Law (Decree – Law No. 14,412) and article 353 General Process Code, allowing the use and execution of electronic checks and digitized checks.
We detail the main modifications of Law 20,038
- *The drawer’s signature can be handwritten or electronic, depending on whether the check is face or electronic.
- *The endorsement in electronic checks will be made with an advanced electronic signature in accordance with the provisions of Law No. 18,600.
- *The date of the deposit will be considered the date of presentation;
- *The law allows a “common” check (in physical format) to be deposited in the bank by sending a digital image of it, without having to appear in person.
- *electronic and digitized documents will have the same validity and legal effectiveness as physical documents. Receiving banks can digitize face checks.
- *The BCU must issue a certificate that will be delivered by the Bank in case of rejection of an electronic or digitized check. Said certificate shall constitute an executive title, which may be executed judicially.
The regulations enable the Central Bank to regulate the application of the provisions of the law that apply to electronic checks.
