Financial Crime World

Colombia Enforces Tough Penalties for Financial Crime

Combating Money Laundering and Terrorist Financing

Colombia has implemented stringent legislation to combat money laundering and terrorist financing, making it a criminal offense in both cases. The country’s laws apply equally to all individuals, including citizens and foreigners who engage in these activities.

What is Money Laundering?

According to the law, money laundering is defined as:

  • Acquiring, guarding, investing, transporting, transforming, storing, conserving, or administering assets with a direct or indirect origin in illegal activities such as:
    • Human trafficking
    • Extortion
    • Drug trafficking

The crime carries an imprisonment penalty of up to 30 years and a fine of up to $10.4 million.

What is Terrorist Financing?

Terrorist financing is also criminalized, with the law prohibiting anyone from providing funds, goods, or resources to:

  • Organized crime groups
  • Terrorist organizations

The crime carries an imprisonment penalty of up to 22 years and a fine of up to $3.1 million.

Establishing a Violation

To establish a violation, the prosecution must prove that the defendant:

  • Had knowledge that they were committing a crime
  • Was willing to commit it
  • Negligence is not punishable

Extra-Territorial Reach

Colombia’s laws have extra-territorial reach, applying in cases where:

  • Colombian citizens or diplomats commit crimes abroad
  • Foreigners commit crimes against the Colombian government

Compliance Obligations

Businesses and individuals operating in certain sectors must comply with anti-money laundering and counter-terrorism financing regulations. These obligations include:

  • Designing compliance systems
  • Reporting suspicious operations
  • Designating a compliance officer

Failure to comply can result in fines ranging from $51,000 to $1.04 million, depending on the sector.

Enforcement

The General Prosecutor’s Office is responsible for enforcing Colombia’s anti-money laundering and counter-terrorism financing laws, while specialized agencies oversee compliance in specific sectors such as:

  • Finance
  • Transport
  • Real estate

Colombia’s tough penalties and regulations demonstrate its commitment to combating financial crime and protecting its economy from illegal activities.