Financial Crime World

48-Hour Countdown: Argentina Takes Tough Stance on Terrorist Financing

As the clock ticks down to 48 hours since our last update, Argentina’s efforts to combat terrorist financing and money laundering are making headlines. The country has taken significant steps in recent years to strengthen its anti-money laundering (AML) regulations, and it seems that these efforts are paying off.

Fines and Penalties

For individuals and businesses convicted of money laundering crimes, the penalty is severe:

  • Up to 10 years imprisonment
  • A fine equivalent to two to ten times the amount of the illegal transaction
  • In cases where the transaction value does not exceed AR$300,000 (approximately $2,700), the penalty is reduced to six months to three years of imprisonment

Recent Developments

Argentina has been working tirelessly to develop its AML regulations, and recent proposals aim to include cryptocurrency businesses under these laws. This move is expected to take effect in 2022.

AML Compliance: What You Need to Know

AML compliance is a set of measures aimed at preventing the introduction of illegal funds into the financial system. To comply with AML regulations, businesses must:

  • Avoid knowingly assisting criminal activities
  • Report suspicions of money laundering activity

Argentina’s Progress Against Money Laundering

Over the past decade, Argentina has made significant strides in developing its AML regulations. The country is a member of the Financial Action Task Force (FATF) and has been working to address deficiencies in its financial system. As a result:

  • Argentina’s risk score has dropped from 6.74 in 2016 to 5.03 in 2021

The Law 25.246: A Key Piece of Legislation

Enacted in April 2000, Law 25.246 (also known as the “AML Law”) aims to prevent money laundering and terrorist financing by:

  • Amending the Penal Code
  • Creating the Financial Information Unit (UIF)
  • Establishing a stricter regulatory framework for the financial sector

Obligated Subjects: Who Needs to Comply

The list of businesses that need to comply with Argentine AML regulations includes:

  • Financial institutions
  • Exchange offices
  • Natural and legal persons engaged in games of chance
  • Stockbrokers
  • Insurance companies
  • And more. The complete list can be found here.

As the clock ticks down, it’s clear that Argentina is committed to fighting money laundering and terrorist financing. Businesses operating in this country should ensure they are compliant with all relevant regulations to avoid severe penalties.