Declaration of Source of Funds Colombia (Declaración de Origen de Fondos)

A Declaration of Source of Funds Colombia (Declaración de Origen de Fondos) is a sworn statement (declaración juramentada) through which an individual or legal entity certifies the lawful origin of funds used in commercial transactions, corporate investments, real estate acquisitions, or financial operations, as required by the anti-money-laundering (AML) and counter-terrorism financing (CFT) framework established by Resolución 100-002657 de 2021 of the Superintendencia de Sociedades, Ley 1474 de 2011 (Estatuto Anticorrupción), and the SARLAFT (Sistema de Administración del Riesgo de Lavado de Activos y de la Financiación del Terrorismo) regime supervised by the Superintendencia Financiera de Colombia (SFC).

The constitutional basis for source-of-funds declarations derives from Article 6 of the Constitución Política de 1991, which establishes that individuals are responsible before authorities for violating the Constitution and the law, and Article 95 numeral 9, which imposes the civic duty to contribute to the financing of state expenses within concepts of justice and equity. The Colombian State's obligation to combat money laundering is rooted in the international commitments under the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (Vienna Convention, 1988), ratified by Colombia through Ley 67 de 1993, and the Financial Action Task Force (FATF/GAFI) Recommendations to which Colombia adheres as a member of GAFILAT (Grupo de Acción Financiera de Latinoamérica).

Ley 1474 de 2011 (Estatuto Anticorrupción) strengthened Colombia's AML framework by expanding the obligation to implement risk management systems beyond the financial sector. Under Article 27 of Ley 1474, the Superintendencia de Sociedades issued Resolución 100-002657 de 2021, establishing the SAGRILAFT (Sistema de Autocontrol y Gestión del Riesgo Integral de Lavado de Activos, Financiación del Terrorismo y Financiamiento de la Proliferación de Armas de Destrucción Masiva) for companies supervised by the Superintendencia de Sociedades. Companies subject to SAGRILAFT must collect source-of-funds declarations from counterparties in transactions exceeding specified thresholds.

The UIAF (Unidad de Información y Análisis Financiero), created by Ley 526 de 1999, serves as Colombia's financial intelligence unit, receiving Reportes de Operaciones Sospechosas (ROS) from obligated entities and coordinating with the Fiscalía General de la Nación for criminal investigations. Under Decreto 1068 de 2015 (Decreto Único Reglamentario del Sector Hacienda), persons conducting cash transactions exceeding COP 10.000.000 (ten million pesos) must report them through the financial system, and source-of-funds documentation is required for transactions involving higher amounts.

Money laundering is criminalised under Código Penal Article 323 (lavado de activos), punishable by 10 to 30 years of imprisonment and fines of 650 to 50.000 SMLMV (salarios mínimos legales mensuales vigentes). Related offences include enriquecimiento ilícito de particulares (illicit enrichment — CP Article 327), testaferrato (acting as a front man — CP Article 326), and omisión de control (failure to implement controls — CP Article 325). The declaration of source of funds provides documentary evidence of the declarant's good-faith compliance with AML obligations and constitutes a defence against potential criminal liability.

Notarisation of the declaration is common practice under the fe pública (public faith) framework administered by notarías públicas under Decreto 960 de 1970 (Estatuto del Notariado), though not always legally required. Notarised declarations carry enhanced evidentiary weight in proceedings before the Fiscalía General de la Nación or the Juzgados Penales del Circuito.

A Declaration of Source of Funds Colombia is needed whenever an individual or legal entity must certify the lawful origin of money used in transactions subject to anti-money-laundering (AML) scrutiny under the SAGRILAFT regime of Resolución 100-002657 de 2021 or the SARLAFT regime of the Superintendencia Financiera de Colombia (SFC). The declaration is a fundamental compliance document in Colombian commercial practice, required by counterparties, financial institutions, notarías, and regulatory authorities.

The declaration is required when purchasing real property (compraventa de inmuebles) before a notaría pública. Under the Estatuto del Notariado (Decreto 960 de 1970) and Circular Externa DG-0100 of the Superintendencia de Notariado y Registro, notarios públicos must collect source-of-funds declarations from buyers in real estate transactions, particularly those exceeding specified value thresholds. The Oficina de Registro de Instrumentos Públicos (ORIP) may also require the declaration as part of the registration process for property transfers.

The Colombia Declaration of Source of Funds Colombia (Declaración de Origen de Fondos) document is needed when investing in a Colombian company — whether through direct share subscription (suscripción de acciones under Ley 1258 de 2008), capital contributions to partnerships (aportes a sociedades under CCo), or convertible loan instruments. Companies subject to SAGRILAFT under Resolución 100-002657 de 2021 must collect source-of-funds declarations from investors as part of their counterparty due diligence (debida diligencia) obligations.

The declaration is needed when opening bank accounts or conducting significant transactions through the Colombian financial system. Banks, cooperativas financieras, and compañías de financiamiento supervised by the SFC implement SARLAFT under Circular Básica Jurídica CE 029 de 2014, Part I Title IV Chapter IV, requiring source-of-funds documentation for account openings, large deposits, wire transfers, and loan applications.

A source-of-funds declaration is needed when entering into commercial contracts above specified thresholds — including contracts with government entities under the contratación estatal framework of Ley 80 de 1993 and Ley 1150 de 2007, where the entity contratante must verify that contractors' funds are not derived from illicit activities.

The document is needed when the UIAF (Unidad de Información y Análisis Financiero) or the Fiscalía General de la Nación requests documentation in connection with an investigation into potential money laundering under CP Article 323 or related offences.

A Declaration of Source of Funds Colombia under Resolución 100-002657 de 2021 of the Superintendencia de Sociedades, Ley 1474 de 2011, and the SARLAFT/SAGRILAFT anti-money-laundering framework must contain the following essential elements to constitute a valid compliance document.

Declarant Identification: Full legal name, tipo de documento de identidad (cédula de ciudadanía for Colombian nationals, cédula de extranjería for foreign residents, pasaporte for non-residents, or NIT for legal entities assigned by the DIAN), document number, date of birth, nationality (nacionalidad), and domicile address (dirección de domicilio). For legal entities, the declaration must identify the representante legal and include the NIT and Certificado de Existencia y Representación Legal from the Cámara de Comercio.

Transaction Description: A clear description of the transaction for which the funds are being used — real estate purchase (compraventa de inmueble), equity investment (inversión en capital), commercial contract payment, loan disbursement, or other specified purpose. The description must include the transaction value in Colombian Pesos (COP) and the identity of the counterparty.

Source of Funds: Detailed identification of the lawful origin of the declared funds — including employment income (ingresos laborales), business profits (utilidades empresariales), investment returns (rendimientos de inversiones), inheritance (herencia under CC Article 1008), donations (donaciones under CC Article 1443), sale of real property (venta de inmuebles), sale of movable assets (venta de bienes muebles), loans from financial institutions (créditos bancarios), or other lawful sources. The declaration must be specific — vague statements of "personal funds" or "savings" are insufficient for SAGRILAFT compliance.

Sworn Statement: An explicit declaration under oath (declaración juramentada) that the funds are derived from lawful activities and are not connected to money laundering (lavado de activos under CP Article 323), terrorism financing (financiación del terrorismo under CP Article 345), financing of proliferation of weapons of mass destruction, or any other criminal activity under the Código Penal (Ley 599 de 2000).

PEP Declaration: A statement regarding whether the declarant is a Persona Expuesta Políticamente (Politically Exposed Person — PEP) as defined by Decreto 1674 de 2016. PEPs include individuals who hold or have held prominent public functions — elected officials, senior government appointees, judicial officers, military commanders, and directors of state-owned enterprises — as well as their family members (familiares) and close associates (asociados cercanos). PEP status triggers enhanced due diligence obligations under SARLAFT and SAGRILAFT.

Supporting Documentation: Reference to documentary evidence supporting the declared source of funds — including declaraciones de renta (income tax returns filed with the DIAN), certificados de ingresos y retenciones (income and withholding certificates from employers), extractos bancarios (bank statements), escrituras públicas (public deeds for property sales), or other financial documentation.

Forms-legal.com provides this Declaration of Source of Funds Colombia template as a practical starting point for AML compliance documentation. Every source-of-funds declaration involving significant transaction values should be reviewed by an abogado penalista or compliance specialist to confirm full compliance with SAGRILAFT requirements under Resolución 100-002657 de 2021, SARLAFT circulars of the SFC, and the UIAF reporting obligations under Ley 526 de 1999.

Additional compliance elements for a Declaration of Source of Funds Colombia (Declaración de Origen de Fondos) used in Colombia include: Under the Codigo de Comercio Articles 619-668, titulos valores (negotiable instruments) are governed in Colombia. The Superintendencia Financiera de Colombia (SFC) supervises banking and securities. The DIAN administers IVA and Impuesto de Renta under the Estatuto Tributario. The Banco de la Republica sets monetary policy. The Ley 1231 de 2008 governs factoring. The UIAF enforces anti-money-laundering regulations. Forms-legal.com provides this template as a starting point for Colombia-compliant documentation.