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The term to adopt a SAGRILAFT is extended

On April 9th, 2020, the Superintendence of Companies (“SC”) issued External Resolution 100-000004 of 2021 (“Resolution 100-00004”) through which several sections of External Resolution 100-000016 of December 24th, 2020 related to the prevention of money laundering, financing of terrorism and financing of the proliferation of massive destruction weapons risks (“ML/TF/FPWMD Resolution”) were added or modified.

The issuance of Resolution 100-000004 was unexpected since the aforementioned ML/TF/FPWMD Resolution, containing all requirements for the implementation of a ML/FT/FPWMD compliance system (“SAGRILAFT”), the Minimum Measures Regime and the companies obliged to do so, was issued just a few months ago.

Hereunder, we provide a brief summary of the most relevant modifications and additions introduced by this new regulation:

Extension of the term to implement/ modify a SAGRILAFT or the Minimum Measures Regime

Resolution 100-000004 extended the maximum term for Obliged Companies to adopt a SAGRILAFT or the Minimum Measures Regime, as applicable, from May 31st to August 31st, 2021, but only for this year. Hence, companies that became Obliged Companies as of December 31st, 2020 and those that already had said status must adopt the necessary measures to implement or modify their existing system as of this date.

Compliance officers (“CO”)

1) Compliance officer in branches of foreign companies: Resolution 100-000004 provides that CO of branches of foreign companies established in Colombia must be designated by the competent corporate body of its parent company. All reports to be delivered by the CO shall be presented to the aforementioned body.

2) Certification of suitability: The ML/FT/FPWMD Resolution provided that Obliged Companies must provide evidence to the SC of the suitability of the designated CO to act in this role.

Resolution 100-000004 imposes a new obligation in relation to this matter, providing that all Obliged Companies must, as well, submit a copy of (i) the CO’s ID; (ii) its resume; and (iii) the minute of the meeting where the CO was designated, to the UIAF [1] Financial Análisis and Information Unit  via the SIREL [2] The UIAF’s online report system System.

3) Prohibition for the CO to hold other positions in the company: The ML/FT/FPWMD Resolution established the prohibition for the CO to also hold the position of legal representative, board member, external or internal auditor or any other administration role in the company.

Resolution 100-000004 clarifies this prohibition does not apply to those people who support the external or internal auditor roles.

4) New requirement to be designated as CO: External Resolution 100-000004 provides that in order to hold the position of a CO, said person must be domiciled in Colombia.

Due Diligences in relation to PEP [3] Politically Exposed Person

The ML/FT/FPWMD Resolution established that PEP are counterparties that represent, in general terms, a higher risk of Money Laundering and Terrorism Financing for a company. Therefore, it demands companies to do a deeper due diligence process in relation to them.

Resolution 100-000004 requires, additionally, to perform the due diligence process not only over the PEP itself but also to: (i) its spouse or compañero/a permanente; (ii) its family members up to the second degree of consanguinity, second degree of affinity or first civil degree; (iii) its partners or associates, when the PEP has a participation higher to 5% in a company or has control over the company. 

These new modifications and additions introduced by Resolution 100-000004 should be taken into account for the implementation of SAGRILAFT or Minimum Measures before August 31st, 2021.

If you have the obligation to adopt a SAGRILAFT, modify the existing one or implement the Minimum Measures Regime, our Compliance team has extensive experience to advise you in relation to all of your doubts regarding this new regulation.
Despite the term to adopt these new measures was extended, we recommend you adopt the necessary measures to comply with these new regulations as soon as possible to avoid possible sanctions by the SC.

Authors

Portrait of Daniel Rodríguez, LL.M.
Daniel Rodríguez, LL.M.
Partner
Bogotá
Portrait of María Lucía Amador, LL.M.
María Lucía Amador, LL.M.
Senior Associate
Bogotá
Portrait of Ana Maria Barrios
Ana Maria Barrios
Associate
Bogotá