Financial Crime World

Argentina Makes Progress in Combating Anti-Money Laundering Efforts

Despite facing numerous challenges, Argentina has made notable progress in combating anti-money laundering (AML) efforts, with a focus on addressing money laundering associated with narcotics trafficking and public corruption.

Threats to the Financial Sector

The country’s financial sector is vulnerable to various threats, including:

  • Trade-based money laundering
  • Counterfeiting
  • Drug trafficking
  • Other illicit activities

These threats are particularly prevalent in the Tri-Border Area (TBA), shared by Argentina, Brazil, and Paraguay, which has been identified as a major entry point for illegal activities. Some of these activities may be linked to terrorist organizations such as Hizballah.

International Initiatives

Argentina is an active member of international initiatives aimed at combating money laundering, including:

  • The Financial Action Task Force (FATF)
  • The “Grupo de Acción Financiera de Sudamérica” (GAFISUD)

Anti-Money Laundering Law No. 25,246

The country’s AML efforts are guided by Anti-Money Laundering Law No. 25,246, enacted in April 2000. Key provisions of this law include:

  • Amendments to the Penal Code, criminalizing money laundering and related activities
  • Establishment of the Financial Information Unit (UIF), responsible for receiving and analyzing reports of suspicious activities

Reporting Obligations

Financial institutions under supervision by the Central Bank, Securities and Exchange Commission, and National Insurance Superintendence are legally obligated to:

  • Identify customers
  • Maintain records of transactions
  • Report suspicious activities to the UIF
  • Adhere to confidentiality requirements when reporting

The country has expanded its reporting obligations since the enactment of the AML law, requiring additional entities to report suspicious transactions.

Regulatory Authorities

Argentina’s regulatory authorities have played a crucial role in strengthening the country’s AML and counter-terrorist financing regimes. The Financial Information Unit and the Argentine Central Bank have:

  • Established an AML/CFT Committee to centralize evaluations and objectives related to AML/CFT compliance
  • Made significant progress in strengthening AML and counter-terrorist financing capabilities

Progress and Achievements

Argentina has made significant progress in combating money laundering, having been formally removed from the FATF’s follow-up procedure initiated in 2004. The country continues to strengthen its AML and counter-terrorist financing regimes, demonstrating its commitment to combating financial crimes.