Argentina’s Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) Regulations

Core Principles of AML/CFT Programs in Argentina

Designated service providers in Argentina are required to establish robust Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) programs. Each entity must design a unique program tailored to its specific risks, providing flexibility to implement stronger controls where necessary.

Risk Assessment: The Foundation of AML/CFT Programs

At the core of every AML/CFT program is a risk assessment, which serves as the foundation for procedures, policies, and controls. This assessment identifies potential money laundering and terrorism financing risks, guiding the development of targeted measures to mitigate them.

Key Obligations Under Argentine Regulations

According to Argentine regulations, obligated entities must comply with several key obligations:

Client Identification: Collecting from clients documentation that proves their identity, legal status, address, and other relevant information.
Suspicious Activity Reporting: Reporting any suspicious events or operations, regardless of magnitude. Suspicious transactions are those that are unusual, lack economic or legal justification, or exhibit complex patterns.
Confidentiality: Maintaining confidentiality regarding AML actions taken in compliance with the law.
Risk Evaluation: Conducting risk evaluations by assessing the entity’s overall control environment and industry characteristics.
Know Your Customer (KYC): Implementing a KYC framework to maintain up-to-date client profiles.
Monitoring Framework: Developing a monitoring framework to detect irregular and suspicious activity based on predefined customer profiles.
Employee Awareness: Ensuring employees understand the importance of adhering to AML/CFT policies and procedures.
Regulatory Reporting: Capturing required information for regulatory reporting while maintaining its integrity.
Risk-Based Internal Audit: Implementing a risk-based internal audit strategy to demonstrate compliance with terrorism-related money laundering and funding prevention policy.
Awareness Training Programs: Providing awareness training programs to promote healthy behavioral habits among employees.