Colombia

Last Updated: 10/11/2008

CENTRAL AUTHORITY FOR REPORTING

The Financial Intelligence Unit of Colombia is called “Unidad de Información y Análisis Financiero (UIAF)”. The unit's purpose is the detection and prevention of asset laundering and terrorist financing in all economic activities. The FIU centralises all the relevant information collected by financial institutions, other companies and individuals and reports it to the Superintendency of Finance, the Tax Administration and the Prosecutor Office.

UIAF is a member of the Egmont Group.

ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?

Lawyers do not have specific obligations regarding anti-money laundering. However, legal professionals are subject to the general provisions of the Colombian Criminal Code (Arts. 323-327), which imposes imprisonment and financial penalties to those who money launder or those who assist, hide or cover money launderers.

As reported in the 2004 Mutual Evaluation report of GAFISUD, the Colombian Government has taken steps to persuade the relevant authorities to include a range of anti-money laundering obligations for lawyers. UIAF has informed the contributor that the Ministry of Finance and UIAF are working together on a draft regulation which will include concrete obligations for lawyers in regard to anti-money laundering. However, there is no confirmation on the date on which this project will be made public, and no legislation or regulation has been enacted in this matter so far.

From August 1, 2007, notaries public are directly covered by anti-money laundering legislation by means of Resolution UIAF 033 of 2007. Originally, the obligation to report for notaries was contained in Decree 1957 of 2001. However, it was only until 2007 when it became enforceable by means of Resolution UIAF 033.

Besides notaries public, Colombian regulations pertaining to money laundering and terrorism financing cover the following sectors:

Additionally, there are general provisions not addressed to any particular economic sector that would consequently affect the legal profession.

NAME THE LAWS REGARDING ANTI-MONEY LAUNDERING PROCEDURES

The main provisions currently in force pertaining to anti-money laundering are the following:

• Decree 663 of 1993. This sets out general "know your customer" rules applicable to financial institutions, as well as general patterns in agreement with which the Superintendency of Finance has to set forth specific rules for money laundering prevention;
• Regulation 007 of 1996, as amended by Regulation 022 of 2007 and Regulation 062 of 2007, issued by the Superintendency of Finance. Regulation 007 sets out the specific obligations that financial institutions have to comply with and Regulation 062 sets out the specific obligations for securities issuers;
• Law 526 of 1999. This law established the UIAF;
• Law 599 of 2000. This law defines the scope of the crime of money laundering. In particular, Article 323 of this law defines money laundering as the acquisition, investment, transportation, custody or administration of funds with the purpose of concealing their illegal source;
• Law 1121 of 2006. This law amended Decree 663, Law 526, and Law 599.

For a full list and access to all applicable laws and regulations regarding money laundering in Colombia (in Spanish), please click here.

IN ADDITION TO THESE LAWS, IS THERE ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS CURRENTLY IN PLACE?

Law 1123 of 2007 sets forth general parameters and obligations for the practice of the law, but does not include any specific obligation with regard to anti money laundering. Nonetheless, by virtue of this law, lawyers are obliged to (i) comply with the Constitution and the law, and (ii) loyally and within the law collaborate with the purposes of the State and the fair and correct delivery of justice. Additionally, lawyers are forbidden to (i) promote a cause or an action that is clearly contrary to the law, and (ii) advice, sponsor or intervene in any fraudulent actions that may injure third parties’ interests, the State or the community.

UNDER WHAT CIRCUMSTANCES IS A LAWYER UNDER THE OBLIGATION TO REPORT

Currently, lawyers are not directly obliged to report suspicious transactions. However, as it was underlined above, lawyers are still covered by provisions that criminalise money-laundering. 

LAWYER RESPONSIBILITY/LIABILITY

General criminal provisions for money laundering apply to lawyers, as any other individual involved or connected with this illegal activity. Current applicable laws impose up to 22 years of prison and substantial fines.  

CLIENTS IDENTIFICATION AND VERIFICATION 

There are no regulations or guidelines for lawyers regarding the way they need to proceed for client identification and verification. However, as mentioned above, lawyers are obliged to comply with the general provisions set forth by Law 1123 of 2007 (Disciplinary Code for Lawyers), which would at some extent incorporate tacit obligations in connection with anti-money laundering.

LAWYERS PROSECUTED FOR MONEY LAUNDERING OFFENCES

No information available.

HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?

Colombia is not a member of the FATF. However, it is a member of GAFISUD, a South American organisation that resembles the aims and objectives of the FATF. GAFISUD conducted its last mutual evaluation to Colombia in 2004, where it found that there was no legislation in place obliging lawyers to report suspicious transactions or to perform any KYC or due diligence over clients.

GAFISUD’s 2004 evaluation report can be downloaded here.

Information supplied by:

Sergio Michelsen Jaramillo
Partner
Brigard & Urrutia
Bogotá, Colombia
smichelsen@bu.com.co