Applicable procedures to foreign exchange operations

December 26th/2024.

According to Bulletin No. 19 from the Central Bank (Banco de la República), which announces some modifications to External Regulatory Circular DCIP-83, the following changes must be taken into account as of December 19, 2024:

1. Data Update and Identification Unification:

• Title of numeral 1.7 of Chapter 1 is modified.

1. Import Financing:

• Imports can be financed by foreign exchange intermediaries (IMC), merchandise suppliers, and other non-residents. The credits do not need to be reported to the Central Bank (Banco de la República) and can be paid in foreign or legal currency, complying with the Exchange Declaration. Payments in legal currency must follow numeral 3.1.1 of said circular.

1. Disbursements and Payments in Foreign Currency:

• Payments in legal currency must be made from the debtor’s account to the IMC or to the legal currency account of the non-resident creditor. The resident debtor must provide the IMC with the minimum operation data within fifteen (15) business days following the payment.

1. External Credits in Legal Currency:

• Residents and IMCs can obtain credits from non-residents and IMCs disbursed in legal currency. These operations must be reported to the Central Bank (Banco de la República) within a maximum period of fifteen (15) business days from the disbursement date.

1. Elimination of the Expression “Stipulation in Legal Currency”:

• This expression is eliminated for DTF, UVR, IPC, and IBR rates in the “Interest Rate Type” field.

1. Non-Perfected Foreign Capital Investments:

• If a foreign capital investment is partially perfected, the investors must change their initial exchange declaration for two of the same type: one for the effectively invested value and another for the non-perfected value.

1. Compensation Mechanism:

• Residents can only obtain credits disbursed in foreign currency from IMCs and non-residents; consequently, credits between residents cannot be disbursed through compensation accounts.

1. Reports Transmission and Exchange Declarations:

• Compensation account holders must transmit exchange declarations for international investments and external credits before transmitting the Compensation Account Movement Report.

1. Corrections to the Compensation Account Movement Report:

• It is allowed to correct the account registration date to a later date if no operation has been carried out before the new date.

1. Registration of Compensation Accounts:

• The registration of more than one holder is only allowed when the account corresponds to a consortium, temporary union, or fiduciary trust.

These modifications aim to optimize and clarify the procedures applicable to foreign exchange operations, facilitating the management and compliance with exchange regulations by the involved parties.