Coloca International vs. Banco del Estado

Financial Services attorney Juan Felipe Fontecha Mejía published an article in Asuntos Legales about the recent Colombian Supreme Court ruling in the case of Coloca International vs. Banco del Estado. The litigation, resolved after several decades, declared a credit contract void for failing to comply with the registration required by the international exchange regime. The court determined that Coloca cannot recover the loaned money because the contract was knowingly conducted illegally under Article 1525 of the Civil Code. Mr. Fontecha highlights the implications of this decision for financial institutions, as it suggests that any regulatory breach by them is presumed deliberate, which could pose significant challenges for the design and management of financial contracts.

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