Colombia Update: COMPLIANCE – PTEE (Transparency and Business Ethics Programs) IMPLEMENTATION OBLIGATION FOR NON-PROFIT ENTITIES

Pursuant to the Circular 058 of 2022, the District Legal Secretariat (the “Secretariat”) issued the instructions for the preparation and submission of the Transparency and Business Ethics Programs (“PTEE”), for the management of the risks of Corruption and Transnational Bribery for Non-Profit Entities (“NPEs”), which are under the inspection, surveillance and control of the Mayor’s Office of Bogotá D.C.; as well as district entities with inspection, surveillance and control powers over of such NPEs.

1. Types of PTEE: The Secretariat has considered two types ofPTEE, and the specific requirements eachNPEs must comply with are:

Integral Transparency and Business Ethics Program (PTEE-I): NPEs that comply with one or more of the following conditions:

• The total assets as of December 31, 2022, must be equal to or greater than 1,000 SMLMV (COP $1,000,000,000).
• The NPE has implemented a risk management system.

Simplified Business Ethics and Transparency Program (PTEE-S): NPEs that comply with one or more of the following conditions:

• The total assets as of December 31, 2022, are less than 1,000 SMLMV (COP $1,000,000,000).
• The NPE does not have a risk management system implemented.

Each of the programs contains specific obligations that must be fulfilled by the obliged entities.

2. Due dates for submission of (PTEE-S) and (PTEE-I):

In 2023, the two programs must be submitted within the deadlines set forth in numeral 5 of Circular 016 of 2022 of the District Legal Secretariat:

3. Sanctions:Sanctions for the lack of compliance with this obligation could be:

• Successive fines between 1 and up to 500 SMLMV.
• Suspension and cancellation of the NPEs registration.

If you require our support to guarantee the full compliance of these obligations, or would like to check if your entity is obliged and to what extent, please do not hesitate to contact our Corporate and Compliance Law team.

By LLOREDA CAMACHO & CO, Colombia, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact colombia@transatlanticlaw.com 

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