Amendment to the External Regulatory Circular DCIN-83 issued by the Colombian Central Bank Procedures applicable to foreign exchange operations 

By means of Notice No. 45 dated October 28, 2016, the Colombian Central Bank amended Regulation DCIN 83, aiming at updating such Regulation to the new definition of foreign exchange declaration, included by External Resolution No. 14 of 2016, and eliminating mentions to Forms No. 1 to 5. Such modifications shall be effective as of November 1, 2016. 

As for the new definition of foreign exchange declaration, article 1 of Resolution 14 of 2016 issued by the Colombian Central Bank defined it as the information on the minimum data required for exchange operations traded through the exchange market (i.e. by intermediaries exchange market or by compensation account), which is submitted by residents and non-residents who perform foreign exchange transactions. 

To that extent, from the new definition, these are the main changes related to foreign exchange declarations:

1. Regulation of the procedures applicable to the new definition of exchange declaration. Mainly, the obligation of filing physical forms is eliminated and the foreign exchange intermediaries are enabled to establish the mechanisms deemed necessary for the reception of the required information.
2.  
3. Elimination of Forms 1 to 5 (payments for imports and exports of goods, foreign indebtedness, guarantees and collaterals, international investment and services, transfers and other concepts).
4.  
5. Inclusion of the standard of minimum data constituting foreign exchange declarations required by the Bank of the Republic for operation. These data will vary depending on the nature of each operation.
6.  
7. Elimination of the minimum information data regarding interests derived from foreign indebtedness, guarantees, and collaterals.

With regard to these amendments to Regulation DCIN 83, the Colombian Central Bank eliminated the obligation of submission and execution of the physical documents declaring all mandatorily and voluntarily traded operations carried out by Colombian residents and non-residents. Therefore, as of November 1, 2016 each market exchange intermediary will define its own internal procedures for the reception of information constituting a foreign exchange declaration under the minimum requested data standard.  

Finally, it is important to mention that substitution, cancellation and restructuring capital proceedings directly filed before the Colombian Central Bank were not subject to change or amend.