Banking in Colombia begins with learning the laws and regulations. Due to the prevalent drug trade in Colombia, there are extra layers of banking regulations that don't exist in other countries. The money laundering laws are really a subset of regulations unto themselves. However, this doesn't mean there aren't opportunities in Colombia banking institutions. It simply means that before beginning the process, regulatory homework is necessary.

In order to properly understand the banks in Colombia laws and regulations, you'll need to begin with the history and basics of the banking system. Once you know the history, then begin on the present and future banking laws in the country. Each law that precedes it usually builds on a previous one or came about as the result of its inadequacies. Some of the best sources for regulatory information on the banks in Colombia are international publications and institutes. However, before you deposit any assets, there are few items to consider:

1. Review the history and the basic structure of banking in Colombia.

2. Subscribe to international and regional Colombia commercial banking publications.

3. Utilize agencies that have regulatory information on Colombia banking institutions.

Action Steps
The best contacts and resources to help you get it done

Study the essential elements of the Colombia banks

When you compare Colombia banks presently to their history, a roadmap can begin to appear on just how the regulations evolved. For instance, take the Central Bank of Colombia. It began in 1923 as an anonymous entity and now is the issuer of the currency, approver of bank loans and many other regulatory activities. The regulatory structure of the banking system is also a product of the economic history of Colombia.

I recommend: Examine the history of the Central Bank of Colombia. This site also has links to regulatory information. Evaluate the economic breakdown of Colombia provided by The Economist. To understand the general regulatory climate in Colombia, read the article at Mondaq.

Use the resources provided by finance publications for business banking in Colombia

International publications provide an excellent overview of Colombia commercial bank regulations because they usually give you an outsider's perspective. Colombia banking publications can paint a different picture of the system in that they only have the view from inside the regulatory structure.

I recommend: Examine the international briefings on commercial banking in Colombia from the International Financial Law Review. Take the free trial offered by Latin Finance.

Review the corporate banking in Colombia regulatory foundations and forums

The financial standards entities are another good source for regulatory information. They generally catalogue banking laws for each country and provide in-depth reviews of these regulations. A typical bank in Colombia not only must deal with the usual regulatory bodies but they also have money laundering authories setting up an additional layer of regulations.

I recommend: Examine the information available at the Financial Standards Foundation for the latest regulatory news. For money laundering regulations, visit the IBA Anti-Money Laundering Forum.

Access to commercial banks in Colombia is important for business owners that do business in that country. Colombia banking institutions are numerous throughout the larger cities in Colombia such as Bogotá and Cali, but government laws and regulations control all the banks in Colombia, and this makes banking in Colombia more difficult for foreigners. Generally, a business or investor needs a visa and company incorporation before opening a commercial business bank account at any bank in Colombia.

If you choose to open a commercial bank account in Colombia for your business, there are numerous banks for commercial banking located in the capital city of Bogotá, which offer banking services in both English and Spanish. Banking in the capital city offers a number of bank branches in the city and around the country. There are also banks in Bogotá that have international connections and branches. Always compare Colombia banks to ensure you've chose the right one and review the following criteria when banking in Colombia.

1. Understand the regulations that govern the banks in Colombia.

2. Select an American branch of a Colombian or Latin American bank to manage your commercial accounts.

3. Consider US-based World banks to do corporate banking in Colombia.

Action Steps
The best contacts and resources to help you get it done

Evaluate the financial standards that govern the banks in Colombia

While each bank in Colombia will vary on the services that each provides, there are certain rules of financial standards that constitute the basis of their operation. If you understand these rules, it will make your business banking experience in Columbia much easier.

I recommend: Examine The World Bank guide to the business economy of Colombia. Study the banking regulations of Colombian banks from the Financial Standards Foundation.

Choose an American branch for easier Colombia commercial banking access

It's best to choose a bank in Colombia that also has branches or services in the United States. This'll allow you to have more access to banking options and services. International banking in Colombia offers some secure locations to open and access accounts outside the country. Contact each bank individually, as governmental regulations may limit the services they offer.

I recommend: Stanford Bank provides international investment services with locations throughout Latin America including several locations in Colombia, as well as branches throughout the United States and Europe. In addition, Citibank is another US bank with a presence in Colombia that has a long history of known banking success that offers international access to your funds.

Use known private US-based world banks to do commercial banking in Colombia

Many private US banks are also world banks, meaning that there have presences in foreign companies. Many of these banks will be located in areas such as Miami, Houston, or Los Angeles, which makes your business banking easier.

I recommend: The Itau Private Bank specializes in international private banking. Standard Chartered is another US based world bank with a presence in Colombia and offers many similar commercial banking options.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Latin American banks including those in Colombia with branches and government laws and regulations control the connections to US banks. Generally, you must have a business or be an investor before opening an account with banks in Colombia.

Effective banking in Colombia requires you to stay current on the latest industry news and trends. From a historical perspective, banking in foreign countries offers excellent investment opportunities. However, it’s not without a certain amount of risk to your capital. If you can amass pertinent news and from this discern trends, you will be able to reallocate assets ahead of the competition. Colombia banking institutions are subject to strict governmental rules regarding money laundering above the normal banking environment for any other country.

To locate the latest in Colombian bank news and trends, start with the banks. The Central Bank of Colombia issues monetary policy and helps regulate capital levels at Colombia banks. Other avenues include local banking publications and international banking news resources. Each outlet provides its own unique advantages, but you need to make sure to verify any news with a second source before acting on it. However, before you begin the research, there are few items to consider:

1. Review the banks in Colombia reports and news from industry sources.

2. Use regional publications to discern the latest news for Colombia banks.

3. Utilize international guides to Colombia commercial banks.

Action Steps
The best contacts and resources to help you get it done

Examine the news resources available from the business banking in Colombia industry

Local and central banks often publish reports and news that are invaluable in spotting trends within the industry. Besides concentrating on the banking sector, it's important to review the economic and political conditions in Colombia. Both play large roles in the stability and profitability trends for corporate banking in Colombia. An unstable economy or political environment will often signal major problems for the banking industry.

I recommend: Evaluate the reports and news available at the Inter-American Development Bank. Assess the viability of the news resources offered at the Banco de la República, which is the Central Bank of Colombia.

Study the news reports and articles on Colombia's commercial banks

Regional news resources offer news from a Colombian point of view and explain the influences on local policy decisions. This news will allow you to spot trends early in their development. However, you also need to understand that this information usually doesn't take into account the perspective of the foreign investor.

I recommend: Subscribe to the publication Latin Finance for the latest Colombia banking institution news and trends. For information on the economic conditions in the country, use the data available at Colombia Reports.

Employ international news resources regarding Colombia's commercial banks

Commercial banking in Colombia for a U.S. company is much easier if you understand how the local industry news relates to outside investors. International publications can give you this perspective. However, it's only one point of view, and you should incorporate this aspect into a larger trend-spotting model. In other words, the more information sources, the better the model.

I recommend: Register to review the reports available from Economy Watch on the Colombia banking system. Use the resources at The World Bank for the latest news in Colombia.

The Colombian banking system is one previously associated with money laundering due to the country’s drug trade. However, that image is not the reality of the Colombia banks today. There are still tough money laundering laws that ensure the veracity of the banking practices, but there are also some excellent investment opportunities. You just need to understand how to spot them and when the opportunity exceeds the risk. Learning the banks in Colombia key terms can provide an excellent beginning to this educational process. The more Colombia banking knowledge you can accumulate, the easier the asset allocation decision becomes.

Action Steps
The best contacts and resources to help you get it done

Central Bank of Colombia

The Central Bank of Colombia or the Banco de la Republica as it's known in Colombia, issues and manages the currency of the banking system in the country. Aside from monetary policy, the Central Bank of Colombia has the responsibility to maintain a stable financial system.

I recommend: Review the Central Bank of Colombia synopsis available at Economy Watch for more information.

Banco de Bogota

The Banco de Bogota or the Bank of Bogota is one of the largest banks in the country. It also has offices in New York and Miami for better banking convenience. The bank is a subsidiary of the AVAL holding company.

I recommend: Examine the Banco de Bogota summation for more information on the topic.

Bancolombia

Bancolombia usually ranks at or near the top of the Colombia banking system in deposits and earnings. It's also a full-service institution with offices in the United States, Panama and El Salvador.

I recommend: Study the Bancolombia company profile from Hoovers for further details.

Fund of Guarantees of Financial Institutions or FOGAFIN

The Fund of Guarantees of Financial Institutions or FOGAFIN is the regulatory agency that guarantees banking deposits with the Colombian banking system. FOGAFIN performs essentially the function of the FDIC in the United States.

I recommend: Evaluate the Fund of Guarantees of Financial Institutions definition from the Global Legal Information Network.

Colombian peso

The Colombian peso is the national currency of Colombia. Prior to making any banking deposits, it's important to know the exchange rate of the U.S. dollar to the Colombian peso.

I recommend: Assess the currency exchange rate and the definition of the Colombian peso from the Coin Mill.

Central America Free Trade Agreement or CAFTA

The Central America Free Trade Agreement is legislation that facilitates trade and commerce between the member countries. Before making any business commitments in the country, it's important to review this agreement and contact the representatives of the governments involved for more information.

I recommend: Use the primer available at Enterprise Florida for more details on the Central America Free Trade Agreement or CAFTA.