Financial Crime World

Argentina Tackles Money Laundering with Strong Legislation and International Engagement

Argentina has emerged as a key player in the global fight against money laundering, tackling illicit activities such as narcotics trafficking and public corruption head-on.

The Tri-Border Area: A Major Entry Point for Illicit Activities

The country’s Tri-Border Area (TBA), shared with Brazil and Paraguay, serves as a major entry point for trade-based money laundering, counterfeiting, drug trafficking, and other illicit activities. To combat these issues, Argentina has implemented robust anti-money laundering (AML) legislation and participates in international initiatives to strengthen its AML capabilities.

A Strong Anti-Money Laundering Framework

At the heart of Argentina’s AML efforts is Anti-Money Laundering Law No. 25,246, enacted in April 2000. This legislation defines money laundering as concealing or intensifying the proceeds of a crime after it has been committed. The law includes key provisions such as:

  • Amendments to the Penal Code: Money laundering is included in Chapter XIII of the Penal Code, making it a criminal offense to assist individuals in evading investigation or avoiding legal action.
  • Establishment of the Financial Information Unit (UIF): A functionally independent UIF was established within the Ministry of Justice and Human Rights of the Nation.
  • Stringent Regulatory Framework: The law imposes a rigorous regulatory framework on the financial industry, requiring individuals and entities to report suspicious activities to the UIF.

Strengthening AML Capabilities

All financial institutions under the supervision of the Central Bank, the Securities and Exchange Commission (Comisión Nacional de Valores, CNV), and the National Insurance Superintendence (Superintendencia de Seguros de la Nación, SSN) are legally obligated to:

  • Identify customers
  • Maintain records of transactions
  • Report suspicious activities to the UIF
  • Adhere to confidentiality requirements when reporting
  • Forward cases to the Attorney General’s Office if further investigation is warranted

International Cooperation and Progress

Argentina has made significant progress in strengthening its AML and counter-terrorist financing capabilities. The nation was formally removed from the FATF’s follow-up procedure, initiated in 2004, to address deficiencies in Argentina’s AML and CFT systems. This demonstrates the country’s commitment to addressing money laundering and terrorist financing issues.

Conclusion

Argentina has a robust regulatory framework in place to combat money laundering and terrorist financing, with key authorities such as the Financial Information Unit (UIF) and the Argentine Central Bank (BCRA) playing crucial roles in supervising the financial sector and ensuring AML/CFT compliance. The country’s progress in strengthening its AML capabilities is a positive step towards addressing the complex challenges related to money laundering and terrorist financing.