Banking Secrecy Laws and their Implications in Argentina: A Guide for Compliance

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As financial institutions operating in Argentina, understanding the laws, regulations, and guidance governing bank secrecy is crucial. In this article, we will provide a comprehensive guide on banking secrecy obligations in Argentina, including the circumstances under which customer data can be disclosed to third parties.

The Legal Framework for Banking Secrecy

The Financial Entities Law No. 21,526, as amended, sets forth the legal framework for banking secrecy in Argentina. This law outlines the circumstances under which customer data can be disclosed to third parties without prior authorization from the customer.

Prohibitions on Disclosure

Without Prior Authorization

Banks are prohibited from disclosing customer information without prior authorization from the customer or in cases where it is necessary for the conduct of banking operations.

Exceptions to Disclosure

Required by Law

Disclosure may be permitted when required by law, such as:

• Complying with regulatory requirements
• Cases of fraud or money laundering

Personal Data Protection Law: Additional Obligations

In addition to complying with the Financial Entities Law, banks must also ensure compliance with the Personal Data Protection Law No. 25,326. This law regulates the handling of personal data and sets forth strict guidelines for its protection.

Obtaining Consent

Banks must obtain explicit consent from customers before collecting or processing their personal information.

Accuracy, Completeness, and Up-to-Date Information

Banks must ensure that the collected information is:

• Accurate
• Complete
• Up-to-date

Disclosure of Customer Data to Third Parties

To permit disclosure of customer data to third parties, banks must take certain steps, including:

Obtaining Prior Authorization

Obtaining prior authorization from the customer.

Confidentiality Obligations

Ensuring that the recipient is bound by confidentiality obligations.

Records of Disclosed Information

Maintaining records of the disclosed information.

Consequences of Non-Compliance

Failure to comply with these requirements can result in severe penalties, including:

• Fines
• Criminal charges

Conclusion

In conclusion, understanding the complex legal framework governing bank secrecy and personal data protection is essential for financial institutions operating in Argentina. Non-compliance can have significant consequences, and banks must take proactive steps to ensure they are meeting their obligations under these laws.

This article has provided guidance on complying with banking secrecy obligations, the circumstances in which it can disclose customer data to third parties, and required steps to permit disclosure. Additionally, it has discussed Argentina’s Personal Data Protection Law and how banks should address data protection obligations when handling customers’ personal data.