Anti-Money Laundering (AML) Regulations in Argentina
Definition of Anti-Money Laundering
Anti-Money Laundering (AML) refers to measures aimed at preventing the presentation of money acquired through criminal activity into “clean” money, benefiting from crimes such as theft, fraud, and tax evasion, administering stolen goods, and conducting operations with criminals or terrorists.
Purpose of AML
The primary goal of AML is to prevent the reintroduction of proceeds of illegal activities into the financial system.
AML Transaction Monitoring
This involves analyzing customer transaction data to identify suspicious activity that may indicate money laundering or terrorist financing.
Regulated Entities in Argentina
In Argentina, the following entities are required to have an AML policy:
- Financial Institutions: Banks, credit unions, and other financial institutions must comply with AML regulations.
- Private Pension Fund Managers: Companies managing private pension funds must adhere to AML policies.
- Exchange Offices: Exchange offices, which facilitate currency exchange, are subject to AML regulations.
- Natural and Legal Persons Engaged in Games of Chance: Casinos, lotteries, and other gaming establishments must comply with AML requirements.
- Stockbrokers and Stock Brokerage Firms: Companies involved in buying and selling securities must adhere to AML policies.
- Intermediaries Registered with Futures and Options Markets: Companies facilitating trades on futures and options markets are subject to AML regulations.
- Insurance Companies: Insurance companies, including life insurance and health insurance providers, must comply with AML requirements.
AML Fines and Penalties
The penalty for failing to comply with AML regulations can range from two to ten years imprisonment and a fine of up to ten times the value of the goods or services involved.
Recent Developments in Argentina’s AML Regulations
Argentina has made significant strides in developing its AML regulations, including becoming a member of the Financial Action Task Force (FATF) and granting independence to its Financial Information Unit (UIF).
Law 25.246
This law enacted in April 2000 provides detailed definitions of money laundering and auxiliary crimes, creates the Financial Information Unit (UIF), and establishes a stricter regulatory framework for the financial sector.
Obligated Subjects according to Article 20 Law 25.246
The list of businesses that need to comply with Argentine AML regulations includes:
- Financial Institutions: Banks, credit unions, and other financial institutions
- Private Pension Fund Managers: Companies managing private pension funds
- Exchange Offices: Exchange offices facilitating currency exchange
- Natural and Legal Persons Engaged in Games of Chance: Casinos, lotteries, and other gaming establishments
- Stockbrokers and Stock Brokerage Firms: Companies involved in buying and selling securities
- Intermediaries Registered with Futures and Options Markets: Companies facilitating trades on futures and options markets
- Insurance Companies: Insurance companies, including life insurance and health insurance providers