Colombian Central Bank Unveils Draft Regulation to Streamline Payment Processing
The Colombian central bank has taken a significant step towards simplifying the rules governing foreign trade operations and payment processing with the publication of a draft regulation. This move is expected to alleviate existing foreign exchange charges and facilitate transactions made through credit cards, debit cards, or electronic transfers.
Key Provisions of the Draft Regulation
- Elimination of “Coincidence” Principle: The draft regulation seeks to eliminate the outdated principle that requires payments for imports be made only to the seller of the goods, its assignee, or collector agent. Instead, payment service providers will be allowed to channel funds on behalf of importers and exporters without needing to match information provided in customs documents.
- Flexibility in Reporting and Channelling Lower-Value Payments: Payment gateways based in Colombia will now be authorized to directly channel currency paid or received for imports or exports valued at less than $10,000 (or its equivalent in other currencies) or carried out under the modality of postal traffic and urgent shipments.
- Presentation of Exchange Declarations: Payment service providers will be allowed to present exchange declarations for operations they channel, provided certain requirements are met.
Implications for Non-Resident Payment Gateways
While the proposed regulation has been welcomed by some industry stakeholders, others have expressed concerns about the impact on foreign exchange regulations. Critics note that the draft regulation appears to impose extraterritorial obligations on non-resident payment gateways, requiring them to report data on a monthly basis.
Industry Reactions and Next Steps
The proposed regulation has been met with mixed reactions from industry stakeholders, with some welcoming the potential benefits of streamlined payment processing while others express concerns about the impact on foreign exchange regulations. As the Colombian central bank continues to review public comments and feedback, it remains to be seen how the final version will shape the country’s regulatory landscape for payment processors.
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