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A follow-up report from FATF (Financial Action Task Force) reveals that Colombia has significantly improved its AML regulations since the last mutual evaluation.
According to FATF, Colombia has made “important progress” while analysing the follow-up report. Previously, the GAFILAT (Financial Action Task Force of Latin America) prepared the Colombian Mutual Evaluation Report (MER) in 2018. Since then, the country has shown decent progress in regulating its AML strategies. FATF expects that the nations will have “addressed most, if not all, technical compliance deficiencies before the end of the third year since the adoption of their MER.”
In the follow-up report, Colombia has been re-rated from partially to largely compliant on two recommendations, with FATF hailing the country’s “important progress in addressing the technical compliance deficiencies identified in its MER.”
The report highlighted that in terms of Recommendation 10, concerning CDD (Customer Due Diligence), Colombia had overcome any shortcomings related to FIs (Financial Institutions) duty to perform due diligence. This has come in specific to law 2195 of 2022, says FATF, which establishes the measures to allow identification of beneficial ownership. Similarly, Colombia has made significant progress listed in the previous MER related to Recommendation 12, which is crucial for PEPs (Politically Exposed Persons).
Colombia remains partially compliant with Recommendation 24 regarding the transparency and BO (Beneficial Ownership) of legal persons. The report further highlights that Colombia has “made important progress in the establishment of a regime for the identification and record-keeping of information of beneficial owners of legal persons established in the country” but that “certain moderate deficiencies remain, particularly in relation to the update and accuracy” of beneficial ownership information.
Therefore, the country will remain in the enhanced follow-up process, continuing to report to FATF and GAFILAT on the measures it implements to overcome the deficiencies left in the latest report.