What is it?
SAGRILAFT is a Comprehensive Self-Control and Risk Management System for Money Laundering and Terrorist Financing that is a vital part of the obligations that the compliance officer must fulfill.
What is it for?
SAGRILAFT allows you to identify and manage the risks that a company has, taking into account that, the greater the risk, the greater the control. Likewise, it requires compliance with policies and procedures of design, approval, monitoring, dissemination and training that guide the actions of the company , its employees, associates, administrators and other related parties or interested parties.
Who does it apply to?
There are 2 groups:
- The companies required to have a SAGRILAFT system are those monitored by the Supersociedades, that is, those that in the immediately preceding year obtained income or assets equivalent to the sum of 40,000 SLMLV.
- Companies that belong to the sectors of real estate agents, marketing of precious metals and precious stones, legal services, accounting services, construction of buildings and civil engineering works, Virtual Assets, special supervision or special regimes, regime applicable to companies that receive contributions in Virtual Assets, real estate agents, precious metals and precious stones marketing sector, legal services and accounting services
What elements/stages are contained within SAGRILAFT?
In order to identify, prevent, control and manage risk, each of these stages should be fulfilled:
- ML/FT/FPADM Risk Identification *
- ML/FT/FPADM Risk Measurement *
- Risk Control
- Risk Monitoring
*(Money Laundering/Terrorist Financing/Financing of the Proliferation of Weapons of Mass Destruction).
What could be the value of the penalty for non-compliance?
In Colombia, non-compliance can lead to administrative sanctions of more than COP$185 million , which can be imposed by the Supersociedades on the obligated company, the members of the Board of Directors, the legal representative and/or Statutory Auditor.
What consequence could it have for the Compliance Officer?
The Compliance Officer in companies may be linked to criminal proceedings for money laundering and be exposed to consequences ranging from property damage and custodial sentences.
What are the causes that can generate non-compliance?
Not enjoying true autonomy, independence, resources and authority within the obligated subject; not having support and direct communication with the board of directors; not having the support of a human and technical work team; be a member of the Board of Directors, legal representative, internal auditor, external auditor or tax auditor; carry out the position in more than ten obligated subjects or in companies that compete with each other, when the work is outsourced; not promoting the adoption of correctives and updates to Sagrilaft; failure to coordinate the development of internal training programs; not evaluating the reports presented by the internal audit and the tax auditor and not certifying compliance with Sagrilaft to the Superintendency of Companies; not verifying compliance with traditional and intensified due diligence procedures; not ensuring proper archiving of the model’s documentary supports; not designing methodologies for classification, identification, measurement and control of ML/FT/FPADM Risk ; not carrying out the evaluation of the ML/TF/FPADM Risk to which the obligated subject is exposed; not making the Report of Suspicious Operations to the Uiaf; not guaranteeing the reserve of the ROS; not reporting the absence of STRs to the Uiaf; not immediately report the identification of any property, asset, product, fund or ownership right in the name of or under the administration or control of any country, person or entity included in binding lists and not also inform the Attorney General’s Office of the Nation.
How to use technology to help the Compliance Officer fulfill his obligations?
In the market you can find platforms such as Suplos in which, through a cloud platform, you can consult suppliers, contractors, employees, partners, natural persons and other related parties, to be able to carry out an inspection and review of more than 100 lists , to verify the suitability of the linked third party, informative and restrictive in nature. Within the lists are: General information, Social Security, National Lists, International Lists, News and others.
Within the work carried out, Suplos also requests the final beneficiaries and consultations of the international PEPS.
Sources:
Aspects for the implementation of SAGRILAFT. Legis. June 2021
Legal Risks of the SAGRILAFT compliance officer. Juan Pablo Rodríguez.
