Financial Crime World

Argentina Strengthens Beneficial Ownership Transparency with New Register Requirements

Argentina has made significant strides in implementing beneficial ownership transparency reforms, a crucial step in ensuring greater accountability and integrity in the country’s extractive industries.

A Crucial Step Towards Greater Accountability

As part of its commitment to the Extractives Industry Transparency Initiative (EITI), Argentina has launched a beneficial ownership register, known as AFIP registro. This register aims to provide a comprehensive overview of company ownership structures, enabling stakeholders to better understand the flows of resources and identify potential risks.

Key Features of the AFIP Registro

  • Launched in 2020
  • Covers the entire economy, with no threshold used to determine beneficial ownership
  • However, structured data is not currently publicly available, nor is it published in the Beneficial Ownership Data Standard (BODS) format.
  • The register is not accessible via API.

A Significant Step Forward for Argentina

Argentina’s commitment to beneficial ownership transparency is a significant step forward for the country, which has long been plagued by corruption and lack of transparency in its extractive industries. The new register is expected to provide valuable insights into company ownership structures, enabling stakeholders to better understand the flows of resources and identify potential risks.

Implementation and Compliance

The implementation of the AFIP registro is an ongoing process, with the Secretary of Mining and the Secretary of Energy working closely with EITI to ensure compliance with Requirement 2.5. This requirement calls for countries to establish a system that captures beneficial ownership information for all extractive companies operating in their territory.

Recognition as a “Live Register” Country

Argentina’s commitment to beneficial ownership transparency has earned it recognition as a “Live register” country, joining a select group of nations that have successfully launched one or more beneficial ownership registers. The AFIP registro is an important milestone in the country’s efforts to promote greater transparency and accountability in its extractive industries.

Benefits and Implications

The implementation of the AFIP registro is expected to bring several benefits, including:

  • Improved transparency and accountability in the extractive industries
  • Enhanced confidence among investors and stakeholders
  • Better understanding of company ownership structures and potential risks
  • Greater protection for citizens and communities affected by extractive activities

By strengthening beneficial ownership transparency, Argentina is demonstrating its commitment to promoting greater integrity and accountability in its extractive industries.