Financial Crime World

Argentina Tackles Anti-Money Laundering Challenges

Introduction

Buenos Aires, Argentina - Despite significant strides in strengthening its anti-money laundering (AML) regime, Argentina still faces challenges related to the illicit flow of funds.

Corruption and Illicit Funding Sources

Corruption remains a major concern for illegal funding, encompassing both domestic and foreign sources, including proceeds from Venezuela. The Tri-Border Area (TBA), shared by Argentina, Brazil, and Paraguay, serves as a major entry point for a range of illicit activities, including trade-based money laundering (TBML), counterfeiting, drug trafficking, and more.

International Cooperation

Argentina actively participates in international initiatives to combat money laundering. It is a member of the Financial Action Task Force (FATF) and the “Grupo de Acción Financiera de Sudamérica” (GAFISUD), a FATF-style regional body dedicated to implementing the 40+9 Recommendations.

Key Legislation and Regulatory Framework

The cornerstone of Argentina’s AML efforts is Anti-Money Laundering Law No. 25,246, enacted in April 2000. The law defines money laundering as the process of concealing or intensifying the proceeds of a crime after it has been committed.

  • Amendments to the Penal Code: Money laundering is included in Chapter XIII of the Penal Code.
  • 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.

Obligations of Financial Organizations and Businesses

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.

Progress and International Recognition

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.

Argentina’s efforts have been recognized internationally, with the country being a member of the FATF and GAFISUD.