Self-control and Risk Management Systems against Money Laundering and Terrorist Financing

On August 19, 2016, the Superintendence of Companies issued a modification to the Basic Legal Circular (No. 100-000006), which, among other matters, regulated which companies, according to their economic sector, are required to adopt Self-control and Risk Management Systems against Money Laundering and Terrorist Financing (in Spanish, SAGRALAFT), to the extent that such companies meet all of the following criteria or requirements, per sector:

Sector Requisitos
Real Estate Permanent surveillance or control exercised by the Superintendence of Companies
Economic activity registered in the commercial register or activity identified with code L6810 and/or L6820 of the International Standard Industrial Classification, Revision 4 (in Spanish CIIU Rev 4 AC).
In December 31st of the previous year, it obtained a total income equal or superior to 60,000 monthly legal minimum wages (SMMLV), (i.e., as of December 31, 2015, COP 38,661,000,000 c. USD 12,887,000).
Mining or quarrying Permanent surveillance or control exercised by the Superintendence of Companies
Economic activity registered in the commercial register or activity identified with the code B05 and/or B06 and/or B07 in CIIU Rev 4 AC.
In December 31st of the previous year, it obtained a total income equal or superior to 60,000 monthly legal minimum wages (SMMLV), (i.e., as of December 31, 2015, COP 38,661,000,000 c. USD 12,887,000).
Legal Services Permanent surveillance or control exercised by the Superintendence of Companies
Economic activity registered in the commercial register or activity identified with code M6910 in CIIU Rev 4 AC.
In December 31st of the previous year, it obtained a total income equal or superior to 30,000 monthly legal minimum wages (SMMLV), (i.e., as of December 31, 2015, COP 19,330,500,000 (c. USD 6,443,500).
Accounting, Collection and/or Credit Rating Permanent surveillance or control exercised by the Superintendence of Companies
Economic activity registered in the commercial register or activity identified with the code N8291 and/or M6920 in CIIU Rev 4 AC.
In December 31st of the previous year, it obtained a total income equal or superior to 30,000 monthly legal minimum wages (SMMLV), (i.e., as of December 31, 2015, COP 19,330,500,000 (c. USD 6,443,500).
Trade of vehicles, parts and accessories Permanent surveillance or control exercised by the Superintendence of Companies
Economic activity registered in the commercial register or activity identified with the code G4511 and/or G4512 and/or G4530 and/or G4541 in CIIU Rev 4 AC.
In December 31st of the previous year, it obtained a total income equal or superior to 130,000 monthly legal minimum wages (SMMLV), (i.e., as of December 31, 2015, COP 83,765,500,000 (c. USD 27,922,000).
Building construction Permanent surveillance or control exercised by the Superintendence of Companies
Economic activity registered in the commercial register or activity identified with code F4111 and/or F4112 in CIIU Rev 4 AC.
In December 31st of the previous year, it obtained a total income  equal or superior to 100,000 monthly legal minimum wages (SMMLV), (i.e., as of December 31, 2015, COP 64,435,000,000 (c. USD 21,479,000).
Any other business Other companies not listed in the above sectors that on December 31st of the preceding year have obtained total revenues equal or exceeding 160,000 SMLMV (i.e. as of December 31, 2015, COP$103,096,000,000 c. USD$34,365,000).
Football Clubs Subject to External Circular No. 2 dated July 16, 2016 or regulations in lieu.

Those companies that as of December 31, 2015 had fulfilled these criteria, have a maximum term of twelve (12) months as from September 1, 2016, to adopt, review and/or adjust their policy or system of prevention and risk management regarding Money Laundering and Terrorist Financing, so that such policy or system complies with the provisions set forth in the Basic Legal Circular (No. 100-000006). 

Additionally, those companies obliged under the Basic Legal Circular (No. 100-000006) as from December 31, 2016, have a maximum term of twelve (12) months as from January 1 of the year following that in which the companies have met said criteria.  

The Basic Legal Circular (No. 100-000006) contains a series of mandatory parameters, standards and minimum requirements that the SAGRALAFT of each company must comply with.  

Failure to comply with this regulation can result in fines, successive or not, to be imposed by the Superintendence of Companies to the company and/or its officers, up to 200 minimum legal wages (COP$137,891,000, c. USD$45,900). 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.