Terrorist Financing Alert: 48 Hours to Compliance
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As we count down the final hours before the deadline, businesses operating in Argentina are reminded to ensure they are compliant with anti-money laundering (AML) regulations to avoid severe penalties.
New Regulations on the Horizon
According to recent developments, the Financial Information Unit (UIF) has proposed new regulations to include cryptocurrency businesses under AML laws, expected to take effect in 2022. This comes as no surprise, given Argentina’s commitment to fighting money laundering and terrorist financing.
What is AML Compliance?
AML is a set of measures designed to prevent the introduction of illegally obtained funds into the financial system. To comply, businesses must avoid assisting criminal activities and report suspicions of money laundering activity.
Why is AML Important?
The purpose of AML is to stop the reintroduction of illegal proceeds into the financial system. Regulatory authorities oversee the implementation of AML/CTF practices, making it mandatory for businesses to comply.
Consequences of Non-Compliance
Individuals and businesses convicted of money laundering crimes face severe penalties, including imprisonment from two to ten years and fines up to ten times the value of the illegal transaction. In some cases, the fine can be reduced if the illegal transaction does not exceed AR$300,000 (approximately $2,700).
Who Needs an AML Policy?
All regulated companies subject to AML regulations must have an AML policy in place. Senior management is responsible for ensuring that all AML-related policies and controls operate properly.
Argentina’s AML Progress
Argentina has made significant strides in developing its AML regulations over the past decade, with a risk score dropping from 6.74 in 2016 to 5.03 in 2021. The country is committed to fighting money laundering and terrorist financing, as evident by its membership in the Financial Action Task Force (FATF) and recent developments.
Frequently Asked Questions
- What is AML transaction monitoring?
- A necessary analysis of customer transaction data to identify unusual or unexpected transactions that may indicate money laundering or terrorist financing.
- Who needs to comply with Argentine AML regulations?
- Regulated companies, including financial institutions, exchange offices, casinos, stockbrokers, and insurance companies.
Final Reminder
Businesses operating in Argentina have 48 hours left to ensure they are compliant with AML regulations. Failure to do so may result in severe penalties, including imprisonment and fines. Don’t wait – take action now to protect your business and reputation.