FLAR has a simple governance structure. Its main governing bodies are the Assembly of Representatives, the Board of Directors and the Executive Presidency.
Each member country has one vote, both in the Assembly as in the Board. Decisions require a 3/4 majority, except in some special cases that demand a higher majority.
Assembly of Representatives
This is FLAR’s highest authority. It meets ordinarily once a year and its members are the Ministers of Finance of the member countries, or the corresponding official appointed by the respective government. Each representative is entitled to one vote.
Its main functions are:
- Determine FLAR’s general policies.
- Approve the annual budget.
- Approve reserves and profit distribution.
Board of Directors
Its members are the Governors of the Central Banks of the member countries and FLAR’s Executive President, who chairs it. It meets at least twice a year and deals with:
- Formulating FLAR policies and strategies within the general policies approved by the Assembly.
- Approve balance-of-payment support loans or guarantees.
- Establish FLAR’s investment guidelines.
This is the fund's permanent technical body. It is headed by the Executive President, who is elected by the Board of Directors for a 3-year period, with the possibility of being reelected.
The main duties of the Executive President are to:
- Chair the Board of Directors, with voice but without the right to vote.
- Recommend the main policies and strategies to the Board.
- Approve loans or other contingency and liquidity financial supports.
Direct FLAR’s administration and conduct the operations to meet the institutional objectives.
Since July 23, 2017, FLAR’s Executive President is José Darío Uribe, Colombian economist who served as General Manager (Governor) of the Central Bank of Colombia (Banco de la República) for 12 years.
It is comprised by the Executive Presidency, the General Secretariat and the Risk, Financial, Economic Studies and Corporate Services Directorates.
FLAR has a solid control system:
- It has controls for the prevention and detection of money laundering.
- Surveillance is carried out regularly by the Risk Directorate.
- Its financial statements are prepared and audited annually pursuant to the International Financial Reporting Standards.
- Ernst & Young is FLAR's current external auditor. KPMG is the internal auditor.