The UIAF, Colombia’s anti-money laundering agency, has delayed the deadline for exchanges and individuals to begin reporting their transactions to the organisation. The institution has now opened a consultation period during which businesses and individuals can express their views on the draught regulation, which may be adjusted prior to its June 1st implementation.
Colombian Anti-Money Laundering Agency Delays Report Resolution for Transactions
The UIAF, Colombia’s anti-money laundering and counter-terrorism financing authority, has postponed a resolution requiring exchanges and individuals to report certain cryptocurrency transactions. The Colombian unit will begin receiving these reports on June 1, rather than April 1, when it was first formed.
Although the text does not specify the precise reason for the delay, the new resolution establishing the postponement states:
To guarantee that reports submitted to the UIAF are complete and suit the entity’s information needs, the necessity to extend the reporting start date was explored.
Additionally, the new resolution indicates that organisations that have previously submitted their reports may continue to do so voluntarily, but that no penalties would be imposed for failing to do so by June 1st. This will provide the organisation additional time to adapt to the rule, which was adopted in December 2021 by resolution 314, while the organisation hears commentary on the matter from other groups.
Criticism and objectivity
The UIAF recognised the importance of overseeing cryptocurrency transactions in Resolution 314, which requires established subjects to disclose individual transactions worth more than $150 or groups of transactions worth more than $450. The Colombian organisation declared as follows:
Virtual assets have created a situation that justifies the UIAF’s intervention, in that, while they are not illegal in and of themselves in Colombia, they lend themselves to illicit activities due to the anonymity or pseudonymity of the transactions, the lack of central bank support, and their non-recognition as a liberating instrument.
However, this resolution has come under fire from a number of prominent crypto-related figures in the country, who object to the massive amount of data that will have to be handed to the organisation. Among them is Alejandro Beltran, Buda.com’s Colombia country manager, who stated:
Reporting from USD $150 would imply a high amount of transactions, and the associated data would go well beyond what the exchanges themselves can manage.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.