Financial Crime World

Argentina Tightens Laws on Beneficial Ownership to Combat Financial Crime

Buenos Aires, Argentina

In a significant move aimed at combating financial crime and money laundering in the country, the Public Registry of the City of Buenos Aires has introduced new regulations on beneficial ownership. The changes, which come into effect immediately, bring Argentina’s laws in line with international standards and those set by the Unidad de Información Financiera (UIF), the country’s anti-money laundering regulatory agency.

Key Changes to Beneficial Ownership Laws

Revised Definition of Ultimate Beneficial Owner (UBO)

  • The definition of UBO has been revised to include individuals who own at least 10% of a company’s capital or voting rights, or those who exercise final control over it.
  • This is a significant reduction from the previous threshold of 20%.

Disclosure Requirements for Companies

  • Companies will be required to disclose information on their UBOs, including details of any chain of ownership and supporting documentation such as bylaws and shareholders’ registries.

Impact of New Regulations

“This is an important step forward in our efforts to combat financial crime and money laundering in Argentina,” said a spokesperson for the Public Registry. “By increasing transparency and requiring companies to disclose information on their beneficial owners, we can better identify and prevent illicit activities.”

Applicability and Filing Requirements

  • The new regulations apply to all legal entities registered with the Public Registry, including trusts and investment funds.
  • Companies will be required to file information on their UBOs once per calendar year, at the time of requesting a registration or when complying with the annual informative regime.

Argentina’s Move Towards Greater Transparency

Argentina’s move follows similar efforts by other countries to strengthen laws on beneficial ownership in the wake of high-profile cases of money laundering and financial crime. The changes are seen as an important step forward in promoting transparency and accountability in the country’s financial system.