Colombia could restrict large cash payments for transactions such as the purchase of homes, cars and land under a new Anti-Terrorism Statute being prepared by the government of President Abelardo De la Espriella.
The proposal seeks to strengthen controls over the origin of funds used in high-value transactions as part of a broader strategy to combat money laundering and terrorist financing.
The initiative has received the backing of Asobancaria, the trade association representing Colombia’s financial institutions, which stressed the importance of establishing mechanisms to trace the origin of funds used in these transactions.
Asobancaria President Jonathan Malagon praised the initiative, although the financial thresholds, scope of the restrictions and specific conditions to be imposed have yet to be defined. For now, the measure remains a proposal under development that would need congressional approval before July next year.
Will Colombia limit cash payments for buying homes and cars?
Malagon publicly endorsed the initiative in a post on X, stating that real estate, vehicle and land purchases should be subject to mechanisms that make it possible to trace the money involved.
“Colombia’s financial sector welcomes the national government’s consideration of limits on cash payments for high-value purchases as part of the Anti-Terrorism Statute. Purchases of apartments, cars and land lots should be subject to mechanisms that make it possible to trace the origin of the funds. Following the money trail is essential to combating money laundering and terrorist financing,” the industry leader said.
Asobancaria’s position reflects the financial sector’s interest in tightening controls on transactions involving large sums of money, particularly when there is a risk that proceeds from illegal activities could enter the formal economy.
The government aims to make it more difficult for criminal organizations to channel illicit proceeds into the legitimate economy. The sources of financing it seeks to target include drug trafficking and illegal mining, activities that generate significant flows of money outside regulated financial channels.
El sector financiero colombiano celebra que el Gobierno Nacional estudie limitar los pagos en efectivo en compras de alto valor como parte del Estatuto Antiterrorista.
La compra de apartamentos, carros y lotes debe contar con mecanismos que permitan rastrear el origen de los recursos. Seguir la ruta del dinero es fundamental para combatir el lavado de activos y la financiación del terrorismo.
___
@ELTIEMPO https://t.co/dgG7cO1euL— Jonathan Malagón (@JoMalagon) October 13, 2026
How would home and car purchases change?
If the measure moves forward, buyers could face new requirements when paying for high-value goods. Depending on the conditions ultimately established by the regulations, certain transactions that can currently be conducted using large amounts of cash would have to be carried out through bank transfers or other authorized payment methods.
In a home sale, for example, a bank transfer would leave a record of the accounts involved and the movement of funds between the buyer and seller. A similar record could facilitate the analysis of transactions involving used vehicles or land and allow authorities to cross-check payments against sales documentation.
These mechanisms could help detect suspicious transactions and investigate whether the money used comes from legal activities. They would also require buyers and sellers to adapt their payment practices and retain documentation supporting their transactions.
However, several questions remain unresolved. The government has not established the amount that would trigger the restrictions, which types of sales would be subject to them, or whether exceptions would apply to certain transactions.
Part of the anti-terrorism strategy
The possible restrictions on cash payments are part of a broader anti-terrorism framework that the De la Espriella administration is preparing to strengthen the state’s ability to combat criminal organizations and their financing networks.
The bill aims to introduce tools to improve the identification and tracking of funds linked to terrorist activities. Measures under consideration include mechanisms targeting the assets of individuals and organizations linked to terrorism, as well as controls designed to improve the traceability of strategic minerals and virtual assets.
The initiative will be presented to Congress by Interior Minister Rodrigo Lara and will have to undergo the corresponding legislative process. Lawmakers will be responsible for debating its contents and determining the final terms of the proposed measures.
However, traceability alone does not prove that money comes from a legal source. A bank transfer can document a transaction, but determining the origin of the funds requires additional controls and, where appropriate, investigations by the authorities.
The debate will focus on how to strengthen the fight against money laundering without imposing unnecessary burdens on legitimate sales. Until the government introduces the bill and Congress establishes its terms, Colombians will have to wait to find out whether they can continue using cash—and what limits would apply when purchasing homes, cars, or land.