Argentina Takes Steps to Combat Money Laundering and Terrorist Financing

Comprehensive Anti-Money Laundering (AML) Framework

In an effort to combat money laundering and terrorist financing, Argentina has implemented a comprehensive AML framework that aligns with international standards set by the Financial Action Task Force (FATF).

Identifying Suspicious Transactions

• Under Argentine law, obligated entities, such as financial institutions and designated non-financial businesses and professions, are required to identify suspicious transactions or activities that may be linked to money laundering or terrorist financing.
• The process begins with a thorough review of transactions, including:
  • Unusual patterns
  • High-value transactions
  • Unclear sources of funds
  • Other indicators of potential illicit activities

Reporting Suspicious Transactions

• Once a transaction is identified as suspicious, the obligated entity must conduct customer due diligence (CDD) on the parties involved to verify their identity and beneficial ownership.
• The entity then documents and maintains records of the suspicious transaction or activity, along with any supporting documentation.
• Reports are submitted to the Financial Information Unit (UIF), Argentina’s designated authority responsible for receiving, analyzing, and disseminating information related to suspicious transactions and activities.

Urgency and Timeliness

• Reporting to the UIF should be done promptly and without delay once a suspicious transaction is identified.
• Timeliness is crucial in allowing authorities to take appropriate action to investigate and prevent potential money laundering or terrorist financing.

Confidentiality and Immunity

• Entities reporting suspicious transactions are protected by confidentiality provisions under Argentine law, ensuring their identities remain confidential and preventing potential retaliation.

Cooperation with Law Enforcement

• After submitting a report to the UIF, obligated entities may be required to cooperate with law enforcement agencies and provide additional information or assistance in investigations related to reported suspicious activities.

Ongoing Monitoring

• Even after reporting a suspicious transaction, obligated entities are expected to continue monitoring the situation and take necessary actions to mitigate risks associated with the reported activity.

International Cooperation and Compliance

• Argentina has adopted a risk-based approach to AML/CFT, assessing risks associated with money laundering and terrorist financing and tailoring measures accordingly.
• The country actively participates in international efforts to combat money laundering and terrorist financing, cooperating with other countries in information sharing, extradition, and the freezing of assets related to these illicit activities.

In summary, Argentina’s AML framework is designed to detect and prevent money laundering and terrorist financing through a structured process that includes identification, due diligence, documentation, analysis, reporting, and ongoing monitoring. The country’s commitment to compliance with international standards has earned recognition as a key player in the global effort against these financial crimes.