Argentina Implements Revised Anti-Money Laundering Regulations
The Argentine government has recently put into effect new anti-money laundering (AML) regulations, which have significant implications for companies operating in the country.
Expanded Obligations for Obligated Persons
As of March 26, businesses must review whether they fall under the category of “obliged persons” required to comply with AML laws. According to DLA Piper, a leading law firm that has examined the changes, the updated guidelines broaden the definition of obliged persons to include:
- Lawyers and legal advisers: Involved in transactions related to asset management, entity incorporation, and other activities conducted on behalf of clients.
- Non-financial credit providers
- Central depository agents
- Corporate service providers
- Trustees
New Reporting Requirements and Procedures
The Unidad de Información Financiera (UIF), Argentina’s financial intelligence unit, has outlined the following reporting requirements and procedures for obliged persons:
Registration with the UIF
Obtained by completing a registration form and providing required documentation.
Appointment of Compliance Officers
Each obliged person must appoint a compliance officer to oversee AML activities.
Establishment of Internal AML Manuals
Obliged persons must develop internal AML manuals outlining policies, procedures, and guidelines for AML compliance.
Implementation of Know-Your-Client Procedures
Obtained by conducting thorough due diligence on clients and maintaining accurate records.
Reporting of Unusual or Suspected Transactions
Monthly and annual reports must be submitted to the UIF detailing all client transactions and broader descriptions of activities.
Additional Requirements
For corporate service providers and trustees, obligations extend to:
- Risk profiling of clients: Identifying potential risks associated with client activities.
- Reporting of unusual transactions: Submitting monthly and annual reports to the UIF.
Grey Areas in Transactional Activities
Lawyers are exempt from reporting information protected by attorney-client privilege. However, there may be grey areas in transactional activities. Maintaining confidentiality agreements between lawyers and clients is advised as a precautionary measure.
Centralized Register of Ultimate Beneficiary Owners
The Argentine federal tax authority will manage a centralized register of ultimate beneficiary owners, facilitating information sharing to strengthen AML efforts.
Conclusion
The updated AML regulations in Argentina have broad implications for businesses and legal practitioners alike. It is essential for all stakeholders to understand and adhere to these regulations to ensure lawful operations within the AML framework.