Financial Crime World

Argentina’s Small Businesses Must Comply with AML/CFT Regulations

Overview of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Regulations in Argentina

In Argentina, small businesses must adhere to AML and CFT regulations to prevent and fight financial crimes. The Financial Information Unit of the Argentine Republic (UIF) is responsible for supervising and enforcing these regulations.

Creating a Tailored AML/CFT Program

Each small business must create a customized AML/CFT program that addresses its unique risks and challenges. This program should be risk-based, taking into account factors such as:

  • Customer profiles
  • Transactions
  • Geographic locations

The program must also demonstrate clear connections between recognized risks and the processes, rules, and controls that address those risks.

Key Obligations for Small Businesses

To comply with AML/CFT regulations in Argentina, small businesses must:

  • Collect identification documents from customers to establish their identity, legal status, address, and other relevant information.
  • Report suspicious transactions or activities, regardless of their size, to the UIF within a specific timeframe.
  • Refrain from disclosing AML/CFT activities to clients or other parties.
  • Conduct risk assessments to identify potential vulnerabilities.
  • Implement customer due diligence procedures to understand client profiles.
  • Develop monitoring frameworks to detect anomalous and suspicious behavior.
  • Investigate transactions thoroughly to verify their legitimacy.
  • Maintain accurate records of transactions and client information.
  • Provide awareness training programs for employees to prevent money laundering and terrorist financing.

Regular Reporting and Auditing

Small businesses must submit regular reports to the UIF, including:

  • Systematic monthly reports on suspicious operations (ROS/RFT) within 150 calendar days from the date of the transaction or attempted transaction.
  • Reports on suspicious transactions or activities involving terrorism financing within 48 hours from the time the activity was carried out or attempted.

Consequences of Non-Compliance

Small businesses that fail to comply with AML/CFT regulations in Argentina may face severe penalties, including fines and reputational damage.