Colombia’s corporation’s regulator – the Superintendency of Corporations – has recently expanded the scope of companies covered by the obligation to adopt Ethics and Transparency Programs (“PTEE” by its Spanish acronym and most common reference locally), while substantially reinforcing their content1.
The companies within the scope of this new regulation are required to prevent and manage either transnational bribery2, domestic corruption3, or both risks, depending on the general criteria set by the regulation or its sector-specific provisions4.
The PTEE must be designed according to the size, needs, structure and risk profile of the company, driven by a strong ethical culture together with the following hallmarks:
Some more original features are also worthy of note:
Finally, the Superintendency specifies that the PTEE should be regularly improved through periodic testing and review. An update is necessary every time that identified changes have an impact on the risk profile of the company. In any case, such an update must take place no less than every two years.
1 Circular Externa 100-000011 del 9 de agosto 2021.
2 Companies having realised transactions with foreign counterparts for over 100.000.000 Colombian pesos, provided that they have either (i) annual revenues over 30.000.000.000 Colombian pesos or (ii) assets representing over 30.000.000.000 Colombian pesos.
3 Companies having realised transactions with the Colombian State for over 500.000.000 Colombian pesos, provided that they have either (i) annual revenues superior to 30.000.000.000 Colombian pesos or (ii) assets superior to 30.000.000.000 Colombian pesos.
4 The revenue and asset threshold are significantly lowered for specific sectors such as pharmaceutical construction, manufacturing, mining, energy, IT, auxiliary to financial services and automotive.
Compliance and Privacy Director
Antoine F. Delacarte