Why Is There Strict Implementation Of Due Diligence In Colombia?
Recently, Colombia’s economy had been facing a lot of corruptions and fraudulent activities. Countless scandals involving fraudulent activities, tax evasion and money laundering. On October 4, 2017 multiple businessmen were arrested with same cases –fraud and money laundering all connected with the 2015 “Panama Papers” scandals. Colombia’s top financial crime prosecutor, Andres Jimenez, confirmed that the multiple acts of crimes were done with the help of one of the world’s biggest provider of offshore financial services: Mossack Fonseca. Approximately, more than $1.5 million dollars had been hidden from the Colombian authorities. Because of this, implementations of due diligence in Colombia are becoming strict and stern.
Aside from this scandal there are still a lot of corruptions that had been going on both on the economy and government of Colombia. In fact, the National Paper El Tiempo had confirmed that corruption in the private sector had cost Colombia over $7.78 billion USD in 2016. A figure that describes the severity of financial crimes in the country. Although shaken by the multiple scandals that had resurfaced Colombia seems to take the issue as a call for strong implementation of Due Diligence in Colombia. Due diligence is somehow an investigation done to your future client or partner in order to prove they are working legally. Also, they have established steps in abolishing corruption.
First step is making sure that Colombia has government officials with clear intention and full cooperation for their main goal. They focused and created more governmental actions towards the crime. Aside from the strict implementation of Anti-Corruption Act of 2011 they also established a new Transnational Corruption Act. It was also the first foreign bribery law implemented in Colombia. The National Civil Commission for Fighting Corruption (CNCLCC) made sure that they eliminate the first act of corruption running officials make –bribery.
Next, aside from businessmen and government officials it is also known that policemen are committing acts of bribery. As part of abolishing corruption the government of Colombia funded the reforming of Colombian police forces resulting into the dismissal of 1, 400 officers in April and May 2016. The Colombian government is truly persistent in eliminating corruption in private and public sectors.
Last step for the goal is to make sure that Colombian’s citizens are sharing the same plans with their country. Due to Colombians steps in abolishing corruption many future candidates for 2018 has focused all of their platforms in ending corruption, fraud, tax evasion and money laundering.
Colombia has shown dedication and commitment in ending financial crimes in the different sectors of their country. They established Due Diligence Services in Colombia that had put back the trust of other foreign investors. For example, if you are a foreign investor there are a lot of companies you can contact that can assist you in completing a due diligence in Colombia. Due Diligence in Colombia didn’t just focused on foreign investors as well but also to local firms and businesses. Truly, Colombia made sure that corruption ends with their country.