The UIAF (the Colombian money laundering watchdog) has delayed reporting deadlines for exchanges and individuals to the organization. Now, the institution is opening a consultation period where individuals and companies can express their opinions about the regulation. It could be amended before it goes into effect on June 1.
Colombian Watchdog Delays Resolving Transactions
The UIAF (the organization that monitors and detects money-laundering in Colombia) has delayed a resolution which would have required individuals and exchanges reporting certain crypto transactions. These reports will be received by the Colombian unit on June 1 instead of April 1, when they were established.
However, the original document did not specify the reasons for the delay. The new resolution that amends the document states the reason:
To ensure the submitted reports are complete and meet the information requirements of the entity, it was decided to prolong the reporting deadline.
In the new resolution, it states that reports that are already submitted can be sent to organizations in voluntary form. However, penalties for failing to send them by June 1st will not apply. The organization will have more time to adjust to the December 2021 resolution 314 and receives comments from other groups.
Objet and criticism
The UIAF recognized the necessity of monitoring cryptocurrency transactions. Resolution 314 requires that subjects report transactions exceeding $150 or larger, and groups exceeding $450. Colombian organizations stated the following:
Virtual assets created a crisis that warrants intervention by the UIAF. This is because, even though they are legal operations in Colombia, they may be used to facilitate illicit activity.
This decision has been heavily attacked by crypto-related individuals in Colombia who object to the massive amount of data being delivered to them. Alejandro Beltran (Boda.com’s country manager for Colombia), stated that:
A report starting at USD $150 will be required for large transactions and other data that goes beyond what exchanges are able to handle.
Let us know your thoughts on the delaying of crypto transaction reporting resolution application in Colombia. Leave a comment below.
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