Financial Crime World

ARGENTINA TIGHTENS GRIP ON FINANCIAL CRIME CONTROL

A Bid to Combat Money Laundering and Terrorist Financing

Buenos Aires, Argentina - The Argentine government has strengthened its regulatory framework in an effort to combat money laundering and terrorist financing. This move demonstrates the country’s commitment to implementing international recommendations and protecting its financial system from illicit activities.

THE ANTI-MONEY LAUNDERING LAW NO. 25,246

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

KEY PROVISIONS OF THE AML LAW

  • Amendments to the Penal Code
  • Establishment of the Financial Information Unit (UIF)

THE FINANCIAL INFORMATION UNIT (UIF)

The UIF, functionally independent within the Ministry of Justice and Human Rights, is responsible for receiving and analyzing reports of suspicious activities.

REGULATORY FRAMEWORK FOR THE FINANCIAL INDUSTRY

Financial institutions under the supervision of the Central Bank, Securities and Exchange Commission (CNV), and National Insurance Superintendence (SSN) are legally obligated to:

  • Identify customers
  • Maintain records of transactions
  • Report suspicious activities to the UIF
  • Adhere to confidentiality requirements when reporting

ARGENTINA’S PARTICIPATION IN INTERNATIONAL INITIATIVES

Argentina actively participates in international initiatives to combat money laundering, being a member of the Financial Action Task Force (FATF) and the “Grupo de Acción Financiera de Sudamérica” (GAFISUD).

KEY REGULATORY AUTHORITIES

Argentina has established several key regulatory authorities to oversee AML/CFT compliance:

  • Financial Information Unit (UIF): Responsible for receiving and analyzing reports of suspicious activities.
  • Argentine Central Bank (BCRA): Plays a crucial role in supervising the financial sector and ensuring AML/CFT compliance.

PROGRESS AND INTERNATIONAL RECOGNITION

Argentina’s efforts have been recognized internationally. The country has made significant progress in strengthening its AML and counter-terrorist financing capabilities, with notable achievements including:

  • Formal removal from the FATF’s follow-up procedure initiated in 2004.
  • Strengthening of regulatory framework to implement international recommendations.

These accomplishments demonstrate Argentina’s commitment to combating financial crime and ensuring a secure financial environment.