FOGAFIN Colombia Explained: Deposit Protection for Savers

FOGAFIN, or Fondo de Garantías de Instituciones Financieras, administers deposit insurance in Colombia under Ley 117 de 1985. Its purpose is to protect savers and promote financial system stability through the Seguro de Depósitos program. This guarantee applies when an eligible financial institution enters liquidation, covering deposits up to 50 million Colombian pesos per depositor per entity, as stated on the FOGAFIN official site and confirmed by Banco Finandina.

Only institutions inscribed with FOGAFIN qualify, and coverage targets specific deposit products. This framework follows the IADI Basic Principles for Effective Deposit Insurers (2014). Colombian depositors should verify their institution's status on fogafin.gov.co to understand applicable safeguards.

What FOGAFIN Does and the Controlling Rules

FOGAFIN operates as Colombia's deposit guarantee fund, established by Ley 117 de 1985. The law mandates protection for savers' deposits in the event of an inscribed institution's liquidation. FOGAFIN's role centers on guaranteeing deposit returns and supporting overall financial stability, distinct from daily banking operations or dispute handling.

The Superintendencia Financiera de Colombia provides oversight, but FOGAFIN directly manages the Seguro de Depósitos. Coverage activates solely during liquidation proceedings of qualifying entities.

Coverage Details and Limits

FOGAFIN guarantees up to 50 million Colombian pesos per depositor per eligible entity in liquidation. This limit applies to specified deposit products from inscribed financial institutions. For context, FOGAFIN has executed payouts, such as over 37,500 million pesos to depositors of Internacional Compañía de Financiamiento.

Eligibility requires the institution to be registered with FOGAFIN; non-inscribed entities fall outside this protection. Coverage does not extend automatically to all bank products.

What FOGAFIN Does Not Cover

FOGAFIN's Seguro de Depósitos excludes credit card chargebacks, merchant refunds, peer-to-peer disputes, wire transfer recalls, or everyday banking disagreements. It applies only to qualifying deposits in liquidation scenarios, not investment products, loans, or non-deposit accounts. Protections from other jurisdictions, such as US FDIC or EU deposit schemes, do not apply in Colombia.

Deposits in non-inscribed institutions receive no FOGAFIN guarantee.

Next Steps for Deposit Protection Information

Contact FOGAFIN via its national free line, available Monday to Friday from 8:30 a.m. to 5:30 p.m., or by email, as detailed on fogafin.gov.co. Check your financial institution's inscription status directly on the FOGAFIN site. For broader oversight, consult the Superintendencia Financiera de Colombia.

FAQ

What is the maximum amount FOGAFIN guarantees per depositor?

Up to 50 million Colombian pesos per depositor per entity in liquidation.

Which financial institutions does FOGAFIN cover?

Only those inscribed with FOGAFIN; verify status on fogafin.gov.co.

Does FOGAFIN protect against everyday bank disputes or only liquidations?

Only liquidations of eligible institutions; it does not cover routine disputes.

How do I confirm if my bank is covered by FOGAFIN?

Review the list of inscribed entities on fogafin.gov.co.

What law establishes FOGAFIN's deposit insurance?

Ley 117 de 1985.

Can I contact FOGAFIN for general questions about my deposits?

Yes, use the national free line or email during business hours.