Country Manual Private Banking
Colombia
BRP has updated its Country Manual Private Banking for
Colombia
Regulatory Template, Regulatory Summary and Behaviour Template
Material changes
After in-depth review following consultations with our local counsel, our manual now, in addition to the criterion of territoriality, bases the applicability of local law also on the criterion of residency.
Article 4.1.1.1.2 of Decree 2555 of 2010 limits foreign financial institutions to market or promote their products and/or services on the territory of Colombia as well as to Colombian residents, therefore the approach of our manual is now based on these two criteria: (i) territoriality, and (ii) residency.
This means that Colombian provisions apply with respect to licensable financial activities undertaken on Colombian territory or directed via remote means of communication into Colombia, when the prospect/client is a resident of Colombia, i.e., if the prospect targeted in Colombia is not a Colombian resident (e.g. a foreign tourist), it is generally considered that the various activities such as marketing, promotion, offer, and performance of banking and investment services and financial products undertaken on Colombian territory will not be subject to Colombian Law. As for activities targeting Colombian residents whilst abroad, these requirements are not applicable, since as per the territoriality criteria, Colombian law is only applicable on the territory of Colombia.
However, even in presence of such an exception regarding non-Colombian residents, a cautious approach is always recommended since a too-intensive presence in Colombia might give rise, in any case, to a presumption that a financial activity is taking place locally. In addition, we highlight that there is no formal regulatory practice on this issue, it is therefore not possible to rule out that the Colombian regulators will adopt a stricter approach.
Non-material changes
Some content has been slightly reworded throughout the document, without introducing any material changes, to reflect the regulatory situation and current interpretation of the regulatory framework more accurately.
BT Short Comparison
This document allows users to quickly identify the modifications made compared to the previous version of the PB Manual (BT Short Comparison). The BT Short Comparison can be found on BRP’s platform (mybrponline) in the Search tab by entering in the Document Field “CM PB BT SHORT COMP” and “COLOMBIA” in the Target Country Field.
The BT Short Comparison should be read as follows:
The first column contains a short description of the activity in question. The second column contains the answers of the previous version of the Country Manual (online until the day of the alert). The third column contains the new answers of the most recent version of the Country Manual. Only the modified answers are displayed (in color). If the answers in the new version are unchanged compared to the previous version, they are shaded in grey.
For more information, please contact us: info@brpsa.com
Geneva, March 11th, 2025