On February 18, the Central Bank of Colombia (BanRep, for its acronym in Spanish) issued an external circular regulating the Deposit Account System (CUD, for its acronym in Spanish). This means that BanRep can remove the consignment mechanism in its treasury windows and consequently request entities’ legal representatives to submit the necessary data to reformulate existing contracts before March 2, 2020. In addition, the entity launched a call for Open Market Operations Placement Agents (OMA) which are credit institutions. The deadline for this tender, which aims to encourage institutions to submit quarterly certifications linked to the digital signature, is on February 28, 2020.

The CUD System is a high value payment system administered and operated by the BanRep, which provides entities authorized to participate with fund transfer services, registering operations between Deposit Accounts in their own name or on behalf of their clients. This means that the BanRep’s external circular removes the consignment mechanism at its treasury windows, which implies that for entities using the CUD system, it will be necessary to draw up an Otrosí (document attached to the main contract changing the conditions given in the main contract) to the deposit account contract with BanRep. 

On the other hand, to ensure risk control in open market and liquidity operations for the proper functioning of the payment system, the BanRep launched a call for applications from Open Market Operations Placement Agents (OMA) which are credit establishments. Regardless of whether they consolidate or not, these entities must send their quarterly legal representative and tax auditor certifications by Friday, February 28, 2020.