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Anti-Money Laundering (AML) Compliance and Regulations in Argentina

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Overview of AML Compliance in Argentina

Anti-money laundering (AML) regulations are crucial in preventing the reintroduction of illicit funds into the financial system. In Argentina, AML compliance is governed by Law 25,246, which provides a framework for regulated entities to prevent money laundering and terrorist financing.

Purpose of AML Regulations

  • The primary purpose of AML regulations is to stop the reintroduction of proceeds from illegal activities into the financial system.
  • AML helps maintain the integrity of the financial system by preventing the use of financial institutions for illicit purposes.

Key Aspects of AML Compliance in Argentina

Maximum Fine for Non-Compliance

  • The maximum fine for non-compliance with AML regulations is up to 10 times the value of the goods/services or transaction that the failure concerns.
  • If the value cannot be determined, the maximum fine is AR$100,000 (approximately $900).

Obligated Subjects and Policies

  • All regulated companies subject to AML regulations are required to have an Anti-Money Laundering Policy (AML Policy).
  • The following businesses are considered obligated subjects:
    • Financial institutions
    • Private pension fund managers
    • Exchange offices
    • Natural and legal persons engaged in games of chance (e.g., casinos)
    • Stockbrokers and stock brokerage firms and intermediaries engaged in the purchase, lease, or borrowing of securities in the field of stock exchanges
    • Intermediaries registered with futures and options markets
    • Insurance companies

AML Transaction Monitoring

  • AML transaction monitoring is a necessary analysis of customer transaction data to identify any unusual or unexpected transactions that may give rise to suspicion of money laundering or terrorist financing.

Law 25,246: Key Provisions

Law 25,246, also known as the AML Law, provides a comprehensive framework for preventing money laundering and terrorist financing in Argentina. The key provisions include:

  • Amendment of the Penal Code, providing detailed definitions of money laundering and auxiliary crimes.
  • Creation of the Financial Information Unit (UIF).
  • Establishment of a stricter regulatory framework for the financial sector.
  • List of obliged entities that must report to the UIF.

By understanding AML regulations in Argentina, businesses can ensure compliance and prevent illicit activities from impacting their operations.