Argentina Tightens Screws on Anti-Money Laundering and Combating the Financing of Terrorism Regulations
As Argentina’s financial sector continues to grow, it is essential for the country to have robust anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations in place. The government has recently implemented new rules that require designated service providers to establish AML/CFT programs tailored to their unique needs.
Conducting a Risk Assessment
Each reporting entity in Argentina is required to conduct a risk assessment to identify potential money laundering and terrorism financing risks. This assessment serves as the foundation for its entire AML/CFT program, which must explicitly outline the relationships between identified risks and the procedures, policies, and controls implemented to mitigate them.
Obligations of Obligated Entities
Under Argentina’s AML/CFT regulations, obligated entities are mandated to comply with a range of obligations, including:
- Collecting documentation from clients that can be used to prove their identity, legal status, address, and other relevant information
- Reporting any suspicious transactions or operations, regardless of magnitude
- Refraining from disclosing AML actions to clients or third parties
- Conducting risk evaluations
- Maintaining up-to-date customer profiles through “Know Your Customer” programs
- Monitoring customer transactions for irregularities
- Investigating suspicious activities
- Implementing effective reporting and auditing mechanisms
Employee Training
In addition, obligated entities are required to provide regular training to employees on the importance of adhering to AML/CFT policies and procedures. This includes:
- Raising awareness about the risks associated with money laundering and terrorism financing
- Promoting healthy behavioral habits among staff members
Benefits of Robust AML/CFT Programs
Argentina’s AML/CFT regulations are designed to ensure that financial institutions and other designated service providers take a proactive approach to preventing illegal activities. By implementing robust programs that are tailored to their unique needs, these entities can help safeguard the integrity of Argentina’s financial system and protect its citizens from the risks associated with money laundering and terrorism financing.
By having in place effective AML/CFT regulations, Argentina is better equipped to combat the threats posed by money laundering and terrorism financing, and ensure a stable and secure financial environment for its citizens.