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Argentina Passes Comprehensive Anti-Terrorism and Money Laundering Legislation

Buenos Aires, Argentina - In a significant step towards combating financial crimes, Argentina has enacted comprehensive anti-terrorism and money laundering legislation, effectively removing the country from the Financial Action Task Force’s (FATF) follow-up process.

The Counter-Terrorist Financing Law

Passed in June 2007 as Law 26,268, this law criminalizes terrorism and terrorist financing. It introduces a new crime of terrorism, defined as “anyone who is part of a criminal association set up with the aim of, through the commission of crimes, terrorizing the population or compelling a government or an international organization to do or abstain from doing an act.”

Punishments and Penalties

The law punishes anyone who collects or provides property or money knowing that they will be used to finance terrorist activities. Those convicted of terrorism can face prison sentences of 5 to 20 years, while those convicted of financing terrorism can face sentences of 5 to 15 years.

Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Legislation

The law has modified Argentina’s anti-money laundering legislation by incorporating terrorist financing into the Financial Information Unit’s (UIF) responsibilities. The UIF is responsible for analyzing, handling, and disclosing information with the purpose of preventing and deterring money laundering and terrorist financing.

Central Bank of Argentina’s Role

The Central Bank of Argentina (BCRA), a key entity in AML/CFT matters, has adopted concrete measures to enhance its role as main supervisor of the financial system. The BCRA has:

  • Created an AML/CFT Committee, responsible for centralizing evaluations and main objectives on this matter
  • Regulated the duties of financial entities on AML and CFT, requiring them to implement:
    • Customer identification
    • Record keeping
    • Reporting suspicious transactions
    • Internal controls to ensure compliance

International Recognition

Argentina’s adoption of comprehensive anti-terrorism and money laundering legislation has been hailed as a major achievement by international experts. The country is now better equipped to combat financial crimes and meet its international obligations under the FATF.

“We believe that the efforts of the financial community and regulatory agencies and government officials will definitely lead to a better financial system and general wealth, thereby also contributing to the international effort to combat crime and terrorism,” said a spokesperson for the BCRA.

National Anti-Money Laundering and Counter-Terrorism Finance Agenda

The Argentine Government has enacted a National Anti-Money Laundering and Counter-Terrorism Finance Agenda (National Agenda) in September 2007, which serves as a roadmap for implementing AML/CFT laws and regulations. The agenda provides the structure for the government to improve existing legislation and regulation, and enhance inter-agency coordination.

Conclusion

In conclusion, Argentina’s passage of comprehensive anti-terrorism and money laundering legislation marks a significant milestone in the country’s efforts to combat financial crimes. With the implementation of this law, Argentina has demonstrated its commitment to meeting international standards and combating the financing of terrorism.