Argentina Tightens Anti-Money Laundering Regulations: Businesses and Lawyers Must Comply with New Guidelines
Effective March 26, Argentina has introduced revised anti-money laundering (AML) regulations aimed at strengthening financial integrity. These new laws have significant implications for companies operating in the country, particularly lawyers and legal practitioners.
Who is Affected?
The updated guidelines require businesses to determine whether they fall under the category of “obliged persons” required to comply with AML regulations. The definition has been expanded to include:
- Lawyers and legal advisors involved in transactions such as asset management, entity incorporation, and other activities conducted on behalf of clients
- Non-financial credit providers
- Central depository agents
- Corporate service providers
- Trustees
- Virtual asset service providers (aiming to regulate crypto wallets and exchanges)
Reporting Requirements and Procedures
The Unidad de Información Financiera (UIF), Argentina’s financial intelligence unit, has outlined the following reporting requirements and procedures for obliged persons:
- Registration with the UIF
- Appointment of compliance officers
- Establishment of internal AML manuals
- Implementation of know-your-client procedures
- Reporting of unusual or suspected transactions
Grey Areas and Confidentiality Agreements
Lawyers are exempt from reporting information protected by attorney-client privilege, but there may be grey areas in transactional activities. To mitigate this risk, confidentiality agreements between lawyers and clients are advised.
Obligations for Corporate Service Providers and Trustees
Obliged persons must:
- Risk profile clients
- Report unusual transactions
- Submit annual risk self-assessment reports and independent party evaluations
Monitoring and Reporting Requirements
Obliged persons must:
- Monitor client transactions
- Maintain records of unusual activities
- Submit monthly and annual reports to the UIF, detailing all client transactions and broader descriptions of activities
Centralized Register of Ultimate Beneficiary Owners
The Argentine federal tax authority will manage a centralized register of ultimate beneficiary owners, facilitating information sharing to strengthen AML efforts.
Conclusion
The updated AML regulations in Argentina have far-reaching implications for businesses and legal practitioners. It is essential that all stakeholders understand and adhere to these regulations to ensure lawful operations within the AML framework.