Onboarding Process
Onboarding Process
Onboarding process
FLAR is a public, international law legal entity to which Latin American and Caribbean countries may adhere as “full members”, or the region’s central banks may directly join under the “associate central bank” modality.
Full Member
Associated Central Bank
Full membership in FLAR is open to countries in the region who apply for accession to the Constitutive Agreement. This membership is restricted to countries since it requires adherence to an international treaty.
The accession process consists of two stages. The first one is the application for admission, which is submitted by the country to FLAR. This application is evaluated by the Board of Directors, which recommends the entry approval to Assembly along with the financial conditions. The second stage takes place in the country that applies to adhere to the Constitutive Agreement. In this case, according to the legislation of each country, the treaty approval process by the relevant body must be completed for its subsequent ratification by accession.
Once approval is obtained by the competent body in the applicant country, the document issued in that regard will be the ratification instrument by accession to the Constitutive Agreement, and it must be deposited with the Banco de la República, Colombia’s central bank. Upon completion of this procedure, the country that applied for its incorporation into FLAR will be a full member and it will:
- Make contributions to FLAR’s capital.
- Gain access to the products and services offered by the institution to its members.
- Share the results of each fiscal year.
- Be a member of the Board of directors, with voting rights once its contribution is paid and as long as it maintains a capital contribution equal to or greater than USD 250,000,000.
- Be a member of the Assembly, with voting rights once its contribution is paid and as long as it maintains a capital contribution equal to or greater than USD 250,000,000.
Associated central bank
In July 2021, the Assembly, following the recommendation of the Board of Directors, approved the creation of a new FLAR member category, that of “associate central bank”. Accordingly, those central banks who wish to become members may do so by entering into a linkage agreement between the central bank and FLAR.
The terms of the linkage agreement between FLAR and the associated central bank shall be those set forth by the Board of Directors and the Assembly. The associate central bank will:
• Make contributions to FLAR’s capital.
• Have access to the products and services offered by the institution to its members.
• Share the results of each fiscal year.
• Be a member of the Board of directors, with voting rights once its contribution is paid and as long as it maintains a capital contribution equal to or greater than USD 250,000,000.
• Be entitled to participate in the Assembly meetings, without voting rights.
The country to which the associate central bank belongs may become a full FLAR member at any time, thus gaining access to all the privileges of this kind of membership.
