(16)In Colombia, in accordance with External Circular No 019 of 2022, an ‘equivalent third-country CCP’ is a CCP operating in a jurisdiction in which the SFC observes material compliance with the PFMIs, is subject to effective supervision and with which a cooperation arrangement between the third-country supervisor and the SFC exists. Third-country CCPs recognised as equivalent by the SFC are listed in a public record that is assessed in order to check the compliance with the PFMIs. Pursuant to External Circular No 019 of 2022, exposures of Colombian banks to equivalent third-country CCPs benefit from a preferential capital treatment, while exposures to third-country CCPs which are not considered equivalent are subject to a punitive risk-weight. In practice, such a high risk-weight for non-equivalent third-country CCPs is prohibitive and very few, if any, Colombian banks can be expected to clear at non-equivalent third-country CCPs. Moreover, if Colombian banks decided to clear in a non-equivalent third-country CCP, the high risk-weight would mitigate any risks related to its exposures. In light of the capital treatment applicable to exposures to non-equivalent CCPs under External Circular No 019 of 2022, the Colombian regime can be considered to provide an effective equivalent system for the recognition of third-country CCPs.