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Argentina Introduces 48-Hour Window for Reporting Terrorist Financing Operations

Buenos Aires, Argentina - In an effort to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) regime, Argentina has introduced a new requirement for reporting terrorist financing operations. The country’s Financial Information Unit (UIF) will now require all obliged entities to report any suspected or attempted terrorist financing operations within 48 hours of the operation taking place.

New Requirement

The move is part of Argentina’s efforts to comply with international standards and prevent the misuse of its financial system for illicit activities. Under the new requirement, obliged entities must submit a report to the UIF detailing the suspicious activity, including:

  • Date
  • Time
  • Location
  • Any other relevant information

48-Hour Deadline

The 48-hour deadline will apply to all non-working days and hours, ensuring that there is no delay in reporting suspected terrorist financing operations. This move is expected to enhance Argentina’s ability to detect and prevent such activities, thereby protecting its financial system from abuse.

AML Fines and Penalties

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In related news, the Argentine government has also outlined new fines and penalties for AML non-compliance. Individuals and businesses found guilty of money laundering crimes can face:

  • Imprisonment ranging from two to ten years
  • Fines ranging from two to ten times the value of the illegal transaction

Maximum Fine

The maximum fine for failing to comply with AML requirements is capped at AR$100,000 (approximately $900), while the UIF is entitled to impose administrative fines. Courts may also impose more severe penalties in cases where individuals or businesses are found to have engaged in money laundering activities.

Recent Developments

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Argentina’s Progress

Argentina has been actively working to strengthen its AML regime, including proposals to include cryptocurrency businesses under AML laws, which is expected to take effect in 2022. The country’s efforts have been recognized by the Financial Action Task Force (FATF), which praised Argentina’s progress in addressing deficiencies in its financial system.

FAQs

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What is AML Compliance?

Anti-Money Laundering (AML) is a set of measures aimed at preventing illicit activities, including money laundering, terrorist financing, and other financial crimes. Businesses must comply with AML regulations to avoid assisting criminal activities and report suspicions of money laundering activity.

What is the Purpose of AML?

The primary goal of AML is to prevent the reintroduction of illegal proceeds into the financial system. Regulatory authorities oversee the implementation of AML/CTF practices, which are mandatory for all regulated companies.

Who is Required to Have an AML Policy?

All regulated companies subject to AML regulations must have an AML policy in place. Senior management is responsible for ensuring that AML-related policies and controls operate properly within these companies.

Law 25.246

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Law 25.246, also known as the AML Law, was enacted in April 2000 and introduced several key provisions, including:

  • Creation of the Financial Information Unit (UIF)
  • Stricter regulatory framework for the financial sector

The law has since been amended to expand the list of obliged entities that must report to the UIF.

Obligated Subjects

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The list of businesses affected by Argentine AML regulations includes:

  • Financial institutions
  • Exchange offices
  • Natural and legal persons engaged in games of chance
  • Stockbrokers
  • Insurance companies
  • Others

For a complete list of affected businesses, please see [insert link].