Japan-Colombia Trade Agreement
On June 26, 2014, Colombia’s Congress
approved an agreement with Japan to
“liberalize, promote and protect investments”
between the two countries (Law 1720 of
This agreement will serve as an important tool for stimulating bilateral trade; encouraging Japanese investment flow into Colombia, while also establishing protectionist measures for Colombian
investments in Japan.Japan’s investment expansion into the Colombian economy will strengthen the country’s position in the global economy by providing an injection of foreign capital, increased employment opportunities for Colombians and access to Japanese technological innovation.
Implementation of new AntiMoney Laundering and AntiTerrorist Financing regulations
On June 12, 2014, the firm sent a notice regarding the Superintendence of Companies issuance of important AML/ATF prevention and control regulations (Regulation No. 304-000001) for companies with an income equal to or greater than 160,000 minimum monthly legal wages (approximately USD $50 million) as of December 31, 2013.
On June 17, 2014, The Superintendence of Companies repealed Regulation No. 304- 000001, issuing Regulation No. 100-000005, clarifying the former regulation by subjecting companies with a gross income equal to or greater than 160,000 minimum monthly legal wages to the regulations and establishing a one year compliance deadline measured from the December 31, 2013 cutoff date.
Also, companies that meet the specific income requirements after the initial deadline, will have exactly one year beginning on December 31, 2014 to meet compliance requirements for the duration of 2015. Noncompliance with these new regulations could result in severe sanctions and impose significant legal, reputational and operational risks for companies subjected to the regulations. The firm, with its extensive experience in financial sector compliance matters, is now offering tailored legal services related to this new regulatory scheme. Legal services are offered in two stages. The firm will first perform due diligence to assess the company’s current compliance status, including a GAP analysis comparing current practices with best practices and policies under the regulations. This initial process is followed by implementation of a framework for eliminating the GAP, thus mitigating any identified risks associated with the AML/CTF provisions under Regulation No. 100-000005.