Financial Crime World

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Terrorist Financing: 48-Hour Window for Reporting

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In a move to combat terrorist financing, Argentina has introduced a new regulation requiring businesses and individuals to report any suspicious transactions within 48 hours of the operation or attempted operation. This includes non-working days and hours, emphasizing the country’s commitment to fighting financial crimes.

AML Fines and Penalties

The penalty for individuals and businesses convicted of money laundering crimes ranges from two to ten years imprisonment, along with a fine of up to ten times the amount of the illegal transaction. In cases where the transaction is below AR$300,000 (approximately $2,700), the penalty is reduced.

Recent Developments

  • Argentina has proposed new regulations to tackle money laundering, including the inclusion of cryptocurrency businesses under AML laws, expected to take effect in 2022.
  • The country’s Financial Information Unit (UIF) has been granted increased independence and regulatory powers.

AML Compliance: What You Need to Know

Anti-Money Laundering (AML) is a set of measures aimed at preventing illicit activities, including presenting illegal funds into legitimate businesses. Businesses must report suspicions of money laundering activity and avoid knowingly assisting criminal activities.

Transaction Monitoring: How It Works

AML transaction monitoring involves analyzing customer data to identify unusual transactions that may be linked to money laundering or terrorist financing. This includes establishing the destination of funds and ascertaining the reason for certain transactions.

Who is Required to Have an AML Policy?

All regulated companies subject to AML regulations are required to have an AML policy, with senior management responsible for ensuring its proper implementation.

Argentina’s Progress in Fighting Money Laundering

Argentina has made significant strides in developing its AML regulations, and was praised by the Financial Action Task Force (FATF) in 2014 for addressing deficiencies in its financial system. The country’s risk score has decreased from 6.74 in 2016 to 5.03 in 2021.

Law 25.246: Key Provisions

The AML Law, enacted in April 2000, includes provisions such as:

  • Creation of the Financial Information Unit (UIF)
  • Stricter regulatory framework for the financial sector
  • List of obliged entities that must report to the UIF

Obligated Subjects under Article 20

Businesses required to comply with Argentine AML regulations include:

  • Financial institutions
  • Exchange offices
  • Natural and legal persons engaged in games of chance
  • Stockbrokers
  • Insurance companies
  • And more