External Circular No. 100-000008 of June 11, 2021​

Surveillance of the implementation and compliance of the SAGRILAFT by the Superintendence of Companies

The Superintendence of Companies (the “Superintendence”) enacted the External Circular No. 100-000008 of June 11, 2021 (the “Circular”) by means of which it was established how it will conduct the functions to surveil the implementation and compliance of the System of Integral Risk Management for Money Laundering, Terrorism financing and financing of the proliferation of mass-destruction weapons (“SAGRILAFT”), established in External Circular 100-000016, 2020 (modified by External Circular No. 100-000004 of April 9, 2021).

The functions established in the Circular to surveil the implementation and compliance the SAGRILAFT are:

1. Pedagogy: Consists in (i) trainings regarding the main concepts of SAGRILAFT, (ii) establishing a link in the web page of the entity with content regarding SAGRILAFT, (iii) creating alliances with public entities and private companies to promote SAGRILAFT, (iv) trainings regarding the Report 50 of SAGRILAFT and (v) creating an online course regarding SAGRILAFT.
2. Legal compliance: Consists in assuring a compliance of the law and rules regarding SAGRILAFT to guarantee a correct functioning of the aforementioned system. In this regard the Superintendence will conduct visits to the premises of the companies and/or make requests to the companies

In case the Superintendence identifies (i) a minor and first time breach it will order the company to solve the situation within a specific timing and (ii) a material or reiterated breach it will begin administrative investigation and impose fines of up to 200 minimum legal monthly wages to the company, the Compliance Office, Statutory Auditor or Managers.

3. Timely and prompt action: The Superintendence will establish annual verifications or technological tools (e.g., the Report 50 of SAGRILAFT) in order to identify situations that could derived in a risk of breach.

In this link you will find the External Circular No. 100-000008 of June 11, 2021.

Author: Raúl Vargas I [email protected] I Corporate Law