Argentina Takes Steps to Combat Financial Crime through Public-Private Partnerships

A Groundbreaking Partnership to Combat Money Laundering and Terrorism Financing

BUENOS AIRES, ARGENTINA - The second meeting of Fintel-AR, a pioneering public-private partnership between Argentina’s Financial Intelligence Unit (FIU) and the country’s leading banks, took place today at the FIU headquarters. This meeting marked an important step towards enhancing the effectiveness of Argentina’s financial crime prevention efforts.

Assessing Money Laundering and Terrorism Financing Threats

The meeting focused on assessing money laundering and terrorism financing (ML/TF) threats facing the Argentine banking sector ahead of a scheduled evaluation by the Financial Action Task Force (FATF) later this year. Participants analyzed historical data related to predicate offenses of money laundering from the FIU’s databases, revealing significant concerns surrounding:

• Public Corruption: The illicit flow of funds associated with corrupt government officials and politicians.
• Drug Trafficking: The financing of drug trafficking operations through the banking system.
• Tax Evasion: The use of sophisticated schemes to evade taxes and conceal illegal income.

Enhancing Financial Crime Prevention Efforts

In addition to discussing ML/TF threats, Fintel-AR members agreed to:

• Enhance SAR Templates: Improve the template used for submitting suspicious activity reports (SARs) to increase the effectiveness of financial crime prevention efforts.
• Develop Best-Practices Guide: Create a guide to support banks’ self-assessments under existing regulations, promoting compliance and cooperation.

The Importance of Public-Private Dialogue

Notably, all parties involved expressed unanimous agreement on the significance of public-private dialogue in preventing ML/TF in Argentina’s financial system. This partnership is seen as a crucial step towards strengthening the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework.

By working together, Fintel-AR members aim to create a more secure and transparent financial environment for Argentina, reducing the risks associated with money laundering and terrorism financing.