FLAR has immunities and privileges in all its member countries. These were recognized in the Headquarters Convention signed by FLAR with the Republic of Colombia in 1992.
Republic of Colombia Headquarters Convention
The privileges and immunities recognized by the Headquarters Convention are the following:
- Inviolability of its headquarters, files, correspondence and documents.
- Immunities with respect to any form of forced apprehension that may disrupt FLAR's dominance of its assets, deposits and other resources entrusted to the institution, which may be liabilities, represent equity or are the product of fiduciary transactions.
- Immunities with respect to legal actions against their assets, deposits and other resources entrusted to FLAR, whether they may be liabilities, represent equity or are the product of fiduciary transactions.
- Free asset transferability and convertibility, in relation to the fulfillment of its objectives and duties.
- Exemption from payment of any kind of taxes and responsibilities related to their collection.
International legal nature and immunities
FLAR’s Constitutive Agreement is registered with the Secretary of the United Nations, in compliance with the provisions set forth in Article 102 of the Charter of the United Nations and in the 1980 Vienna Convention on the Law of Treaties.
U.S. Foreign Sovereign Immunities Act (FSIA) (section 1611) grants attachment and execution immunities to foreign central banks and/or monetary authorities.
While its legal nature under the FSIA has never been tested, FLAR’s external lawyers state that there are strong arguments to argue that FLAR would be considered as a foreign monetary authority under FSIA.
In light of said view, FLAR and its assets would be immune to attachment and execution.
Furthermore, under the Restatement of the Foreign Relations Law of the United States, FLAR may be regarded as a separate legal entity, distinct from its member countries and, therefore, arbitral judgments and awards, issued against its member countries or against public entities in their member countries, may not be legally enforced against FLAR or its assets.