Argentina’s Anti-Money Laundering Rules Expand Obliged Persons to Include Lawyers, Others
New Guidelines Take Effect
As of March 26, companies operating in Argentina must meet the definition of an “obliged person” under the country’s anti-money laundering (AML) regulations. The new guidelines expand the scope of criminal activity and appoint new individuals and activities as obliged persons.
Who are Obliged Persons?
The Unidad de Información Financiera task force (UIF), responsible for defining reporting requirements, has designated the following as obliged persons:
- Lawyers and legal advisors
- Non-financial credit providers
- Central depository agents for negotiable securities
- Corporate service providers
- Domiciliation services providers
- Trustees
- Virtual assets service providers (covering crypto wallets and exchanges)
Reporting Requirements
The UIF defines the reporting requirements for obliged persons, which include:
- Registering with the agency
- Appointing a compliance officer
- Developing an internal AML manual
- Establishing a know-your-client procedure
- Filing reports on unusual or suspected transactions
- Maintaining confidentiality agreements with clients
- Creating a risk profile of all clients
Compliance Obligations
Obliged persons must also:
- Create a risk self-assessment technical report to be filed annually with the UIF
- Undergo independent monitoring
- Submit monthly reports detailing all transactions performed for or by clients
- Submit annual systematic reports providing broader transaction descriptions
- Keep records of documents and data collected for 10 years and make them available to the UIF upon request
Information Sharing
The Argentine federal tax authority is now free to share information with the UIF without violating fiscal secrecy rules. The tax authority will also manage a new centralized register of ultimate beneficiary owners.
Experts’ Warning
Experts warn that anyone operating in Argentina must understand the new AML regulations to safely operate within their provisions. The courts are currently reviewing the constitutionality of the new rules regarding lawyers, but similar regulations have been previously found constitutional by the Supreme Court.
Compliance is Key
With the increasing burden of compliance obligations and reporting requirements, it is crucial for companies operating in Argentina to familiarize themselves with the new regulations to avoid penalties and ensure compliance.