Financial Crime World

Argentina Enforces Strict “Know Your Customer” Regulations to Combat Money Laundering and Terrorism Financing

Introduction

In a bid to prevent and combat money laundering (ML), terrorism financing (TF), and complex economic-financial crimes (CEFC), Argentina’s Financial Information Unit (UIF) has implemented strict “Know Your Customer” regulations for financial institutions and designated service providers.

Background

As of 2011 and 2018, the UIF has issued resolutions requiring obligated subjects to maintain an Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) program tailored to their specific needs. The program must be risk-based, with a clear connection between recognized risks and processes, rules, and controls.

Obligated Entities’ Requirements

Obligated entities are required to:

  • Collect identification documents from customers
  • Report suspicious transactions
  • Maintain confidentiality
  • Conduct risk assessments
  • Monitor client activity
  • Ensure all employees understand the importance of adhering to AML/CFT policies and procedures

Reporting Requirements

To remain compliant, obligated subjects must submit systematic monthly reports to the UIF detailing any irregular operations suspected of ML or TF. Suspicious Operations Reports must be well-founded and provide a description of the facts behind the categorization of the operation.

  • The reporting deadline for unlawful actions or money laundering is 150 calendar days from the day the activity was carried out or attempted
  • Reports involving terrorism financing have a 48-hour deadline, including non-working hours

Purpose of Regulations

Argentina’s AML/CFT regulations aim to prevent the misuse of financial systems and protect the integrity of the country’s economy. The UIF will continue to monitor compliance and take enforcement action against those who fail to meet their obligations.

Conclusion

In conclusion, Argentina’s “Know Your Customer” regulations are designed to ensure that financial institutions and designated service providers have robust AML/CFT programs in place to prevent ML, TF, and CEFC. The regulations emphasize the importance of risk-based approaches, customer due diligence, and regular reporting to the UIF.

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