Colombia’s Anti-Money Laundering (AML) Regulations

Overview of AML Laws in Colombia

The Financial Information and Analysis Unit (UIAF) is the key regulator for Anti-Money Laundering (AML) in Colombia, established by Law 526 of 1999. The Colombian government has implemented various regulations to combat money laundering, including laws and guidelines for obligated entities.

Key Regulations and Requirements

Colombia’s Penal Code

• There are 66 types of crimes tied to money laundering as outlined in Colombia’s Penal Code.
• These crimes include fines ranging from 10 to 30 years of imprisonment and a fine ranging from 650 to 50,000 minimum monthly wages.

Financial Information and Analysis Unit (UIAF)

• The UIAF is responsible for overseeing the implementation of AML regulations in Colombia.
• It provides guidance on compliance requirements for obligated entities.

Customer Due Diligence (CDD)

• Obligated entities must perform CDD for their customers and counterparts, including verifying:
  • Origin of resources
  • Identity
  • Address
  • Telephone number

Enhanced Due Diligence (EDD)

• EDD applies to politically exposed persons (PEPs) and clients that require a higher level of scrutiny.

Reporting Requirements

• Reporting is mandatory for public and private entities in the financial and insurance sectors.
• Corporations under the “Superintendencia de Sociedades” with a monthly income superior to 160,000 minimum wages must also report.

Improvements in AML Legislation

The Colombian government has made efforts to improve its AML legislation by:

• Simplifying KYC procedures
• Allowing more technology to streamline verification processes

As a result, more businesses are planning to enter the Colombian market and need to stay up-to-date with recent regulations while using reliable KYC technology.