AML/CTF Prevention Regulations in Colombia — SAGRILAFT and PTEE

In Colombia, SAGRILAFT and the PTEE set the regulatory framework that every obligated company must implement. Unlike Ecuador, the obligation does not arise from the business sector but from the revenue and asset thresholds set by the Superintendencia de Sociedades.

AML/CTF Regulatory Framework in Colombia

• Superintendencia de Sociedades — Supervisor of SAGRILAFT for companies in the non-financial real sector.
• UIAF (Financial Information and Analysis Unit) — Recipient of Suspicious Transaction Reports.
• SAGRILAFT — Self-Control and Comprehensive AML/CTF/PF Risk Management System.
• PTEE — Corporate Transparency and Ethics Program, which operates alongside SAGRILAFT.

The circulars that regulate it

SAGRILAFT is regulated by Chapter X of the Basic Legal Circular issued by the Superintendencia de Sociedades:

• External Circular 100-000016 of December 24, 2020 — Adopted SAGRILAFT with a risk-based approach for commercial companies, branches of foreign companies and single-member companies.
• External Circular 100-000011 of 2021 — Regulated the Corporate Transparency and Ethics Program.
• External Circular 100-000020 — Repeals and replaces the two previous circulars. Obligated entities have until May 31, 2027 to adapt their systems to the new text.

Who is obligated

The obligation depends on thresholds, not on the sector. Under Circular 100-000016, companies supervised or controlled by the Superintendencia de Sociedades whose total assets or revenues exceeded 40,000 SMMLV (monthly minimum legal wages) as of December 31, 2020 had to implement SAGRILAFT starting in 2021.

That is why the first step in Colombia is not designing the system, but determining whether the company is obligated and under which regime: thresholds are reviewed and the change of circular modifies the deadlines.

What the system requires

• Appoint a Compliance Officer and document their duties.
• Prepare the AML/CTF/PF risk matrix with a risk-based approach.
• Adopt the SAGRILAFT manual with due diligence policies and procedures.
• Know the customer, the supplier and the ultimate beneficial owner of counterparties.
• Report suspicious transactions to the UIAF.
• Provide periodic training to management and employees.

Do you need to know whether your company is obligated, or to adapt your system to the new circular? Write to us and we will reply with the scope for your case.