Local Investor Account Requirements - Colombia

20.11.2018

Account Opening/transfer of portfolio Requirements

Open an account as new investor in the Colombian market

1

If you need to open a new CBL account, please complete and send the Account Opening Request for New CBL Customer  and then complete steps 2 and 3

2

If you have an existing CBL account, start here: Provide the documents to be submitted to CBL when opening a sub-account :

SWIFT MT599 account opening request as follows:

MARKET: COLOMBIA
Name of client:
CBL account:
Date of request
Attn: Tax Services Prague
TEXT

Dear Sirs:

We request you to open an account at your local administrator in the Colombian market linked to our existing CBL account________ in the name of the final beneficiary[insert the name of the final beneficiary ] whose residence is located in [mention the country of residence].

In order to comply with Colombian laws and regulations, We hereby declare that following to the due diligence we have conducted pursuant to our applicable “Know Your Customer “ and “Anti-Money Laundering” internal procedures, all funds, means and/or money deposited in the Cash Account that will be opened by BNP Paribas Securities Services Sociedad Fiduciaria S.A within BNP PARIBAS Colombia Corporacion Financiera S.A and Clearstream Banking SA on behalf of this Client, exclusively derive from foreign capital investments, and/or from its returns, and/or from authorised operations pursuant to Colombian law and that all funds, means and/or money derive from licit activities.

 

Signature

Contact person, name, email address and contact telephone number.

3

Provide a notarised and apostilled certificate of residence (COR) issued by the fiscal authorities of the beneficial owner country of origin. All CORs issued in a language different from English or Spanish will have to be translated into Spanish and certified by a sworn translator appointed by BNP Paribas Securities Services Sociedad Fiduciaria S.A. The COR must clearly indicate the period of validity. Please send original with a cover letter clearly mentioning: COLOMBIA and your CLEARSTREAM Account number to:

Clearstream Banking S.A.
Attn: Clearstream Operations Prague s.r.o.
Attn: Prague Tax Services
Futurama Business Park Building B
Sokolovska 662/136b
18600 Prague 8
Czech Republic

4

Once the request has been received, you will obtain an acknowledgment receipt via SWIFT MT568 for valid instructions or, if  your instruction is invalid, you will receive a SWIFT MT568 and your certificate will be sent back with a letter mentioning the reason of invalidation . All the details will be also available in the Xact Web Portal. If the documentation is complete, it will be sent for processing to the domestic market to obtain a local Tax ID.

5

Once the local tax ID has been issued by the local tax authorities, it will be sent to you via SWIFT MT599, which needs to be included in your instructions to Clearstream as documented in the Market Link Guide.

Migration of an existing investor in the Colombian market to CBL

1

If you need to open a new CBL account, please complete and send the Account Opening Request for New CBL Customer  and then complete steps 2 to 4

2

If you have an existing CBL account, start here:

Provide the documents to be submitted to CBL when opening a sub-account:

SWIFT MT599 account opening request as follows:

MARKET: COLOMBIA

Name of client

CBL account

Date of request

Attn: Tax Services Prague

TEXT

 

Dear Sirs,

We request you to open an account at your local administrator in the Colombian market, for an existing Foreign Portfolio Investor (FPI) in the name of [please include the exact name of the final Beneficial Owner. Must be the same as the existing name at the former local administrator] whose residence is located in [please include the fiscal domicile of the existing account] and which Identification Number is: [please include the existing Tax Identification Number_TIN, of the client at their current local administrator]. Following the confirmation of the opening of the account at your local administrator, we will inform you of the date of the migration and duly instruct you to migrate such assets from our current local administrator [include full name +address /BIC]. The existing local tax ID (TIN) for migration is [please include the local tax ID Number for migration]. We will also send you via email the list with the transaction break-down per ISIN, per TIN as requested.

In order to comply with Colombian laws and regulations, we hereby declare that following to the due diligence we had conducted pursuant to our applicable know your customer and anti-money laundering internal procedures, all funds, means and/or money deposited in our cash account that will be opened by BNP Paribas Securities Services Sociedad Fiduciaria S.A within BNP Paribas Colombia Corporación Financiera S.A on our behalf exclusively derive from foreign capital investments, and/or from its returns, and/or from authorised operations pursuant to Colombian law and that all funds, means and/or money derive from licit activities.

 

Signature

Contact person, name, email address and contact telephone number.

3

Provide a notarised and apostilled certificate of residence (COR) issued by the fiscal authorities of the beneficial owner country of origin. All CORs issued in a language different from English or Spanish will have to be translated into Spanish and certified by a sworn translator appointed by BNP Paribas Securities Services Sociedad Fiduciaria S.A. The COR must clearly indicate the period of validity. Please send the original to:

Clearstream Operations Prague s.r.o.
Attn: Prague Tax Services
Futurama Business Park Building B
Sokolovska 662/136b
18600 Prague 8
Czech Republic.

4

In parallel to the SWIFT MT599, please send an email to taxcolombia@clearstream.com with an Excel file per TIN and ISIN to be transferred/migrated with the breakdown of all transactions per ISIN as follows for fixed income securities:

  • Account number
  • TIN (Local Tax ID)
  • ISIN Code
  • Issue Date
  • Coupon Period (AV/SV, etc.)
  • Nominal Value
  • Purchase Date
  • Purchase Price
  • Maturity Date
  • Accumulated fiscal losses

5

Once the request has been received, you will obtain an acknowledgment receipt via SWIFT MT568 for valid instructions or, in case your instruction is invalid, you will receive a SWIFT MT568 and your certificate will be sent back with a letter mentioning the reason of invalidity. All the details will be also available via Xact Web Portal. If the documentation is complete, it will be sent for processing to the domestic market to open the relevant securities accounts at our local administrator in Colombia.

 

6

Once the accounts are opened, you will receive a confirmation in order for you to duly instruct the migration with the existing local tax ID which needs to be included in your instructions to Clearstream as documented in the Market Link Guide.

 

Name change/ TIN change or absorption of existing account

1

Send a SWIFT MT599, attention Tax Services Prague informing of the name change or absorption. Please clearly include in your SWIFT MT599 the Clearstream account number(s) affected by the change as well as the beneficiary (ies) local TIN affected by the change.

In the case of an absorption the TIN of the investor that absorbs the other investor will prevail.

2

Provide all legal supporting documentation for either the name change or absorption. In all cases, all documents must be:

Notarised and apostilled; and

Translated into Spanish and certified by a sworn translator.

All documents must be sent by registered mail to:

Clearstream Banking S.A.
Attn: Clearstream Operations Prague s.r.o.
Attn: Prague Tax Services
Futurama Business Park Building B
Sokolovska 662/136b
18600 Prague 8
Czech Republic

Important notes:

  • The country of residence will determine the tax rate that will apply to the account.
  • Customers must ensure that they provide CBL with appropriate signatory list to validate their signatures.
  • The account opening process will generally take approximately ten/fifteen business days after the CBL customer has provided the relevant information.
  • If the application is satisfactory, BNP Paribas will immediately request a Tax ID (TIN)
  • Upon receipt of the TIN, BNP Paribas will open a sub-account in its books in the name of the Foreign Participant Investor (FPI).
  • CBL will communicate the TIN to the customer. Once this information is received, customers can start sending instructions to CBL on behalf of the relevant investor. The TIN must always be mentioned in customer instructions so that it can be transmitted to BPSS.