NEW COMPLIANCE REGULATION

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1 What the norm says

2 Activities you should do to be on compliance

3 What sanctions you may have

4 “Know you Client” policy

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“Know your client”

“Know your supplier”

“Know your employees”

Managing cash in the company

Operation and transactions supervision

INTRODUCTION TO THE REGULATION

A recent norm issued by Superintendencia de Sociedades in Colombia (External newsletter 304-000001) makes mandatory the implementation of internal corporate procedures to help ensure companies are aware of risks of money laundering and terrorism financing activities.

TO WHOM APPLIES THIS REGULATION?

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All companies that registered revenue in 2013 of more than 160,000 minimum monthly wages* (approx. USD 47m)

For the rest of the companies, this law is a recommendation. However, the law establish that in case the company is involved in a illicit activity and it does not have policies to prevent the risk and develop a carefully due diligence about its contracting party (as clients or suppliers), the company will be penalized.

*Minimum monthly wage 2014: $ 616.000 COP

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WHAT KIND OF RISKS IS YOUR COMPANY EXPOSED?

Legal risk Sentences served in prision for legal representatives

Reputation risk No contracting

Operational risk 2000 minimum wage and closing the company

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“KNOW YOU CLIENTS” STANDS FOR…

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Know Your Client (KYC) standards have been developed globally and have become a legal requirement in many jurisdictions.

The “know” implies that a business will carry out due diligence on a client, supplier or employee to verify that they are who they say they are.

THE PROCESS OF VERIFYING YOUR CLIENTS/COMPANIES INFORMATION

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Client

Investors Collection

TMF Compliance

Know Your Client (KYC)

■ Independent due diligence through worldwide database and information providers for the name-checking activities

■ Electronic archive of all documents and information gathered

■ Access to “SEO” to view and/or register all information and check all is up-to-date

Support in managing relevant anti money laundering (AML) information and data

■ Analysis of data flows of input into the relevant archives

■ Analysis of AML DATABASES contents

■ Analysis of monthly reporting to regulatory authorities

Training programmes personalised for clients

■ Specific technical training in regulatory issues addressed to subjects directly involved in their management such as people involved in KYC process

■ Database management and suspicious transaction analysis

TMF Group (Brunnen)

NOT ONLY FOR THE LAW…

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Whether entering Colombia for the first time or simplifying existing operations, we can give you a QuickStart.

Contact us!

Compliance Officer Maria Arango

Maria.Arango@tmf-group.com

Disclaimer Whilst we have taken reasonable steps to provide accurate and up to date information in this publication, we do not give any warranties or representations, whether express or implied, in this respect. The information is subject to change without notice. The information contained in this publication is subject to changes in (tax) laws in different jurisdictions worldwide. None of the information contained in this publication constitutes an offer or solicitation for business, a recommendation with respect to our services, a recommendation to engage in any transaction or legal, tax, financial, investment or accounting advice. No action should be taken on the basis of this information without first seeking independent professional advice. We shall not be liable for any loss or damage whatsoever arising as a result of your use of or reliance on the information contained herein. This is a publication of TMF Group B.V., P.O. Box 23393, 1100 DW Amsterdam Zuidoost, the Netherlands (contact@tmf-group.com). TMF Group B.V. is part of TMF Group, consisting of a number of companies worldwide. A full list of the names, addresses and details of the regulatory status of the companies are available on our website: www.tmf-group.com. © 2013 TMF Group B.V.

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