Financial Crime World

Argentina’s KYC Procedures: A Comprehensive Guide

Introduction

In Argentina, Know Your Customer (KYC) procedures are a crucial aspect of anti-money laundering (AML) regulations. The country has implemented various laws and guidelines to ensure that financial institutions verify the identity of their customers and maintain records of customer transactions.

Domestic Persons

For individuals residing in Argentina, KYC procedures require:

  • Personal Information: Name, place of birth, date of birth, and nationality.
  • National ID Card: The National ID card (Documento Nacional de Identidad or DNI) is a mandatory document for all Argentine citizens. It contains personal details such as name, date of birth, place of birth, and citizenship.

International Persons

For non-resident individuals, KYC procedures require:

  • Personal Information: Name, place of birth, citizenship, and date of birth.
  • Passport Details: A valid passport or other government-issued identification document.

Corporate Requirements

Financial institutions must verify the identity of corporate customers by obtaining:

  • Company Details: Company name, identification number (DNI or CUIT), tax identification number, constitution act and date, and source of earnings.
  • Beneficial Owner Information: The identity and address of the beneficial owner(s) of the company.

Electronic Signatures

Argentina has implemented digital signature laws, which recognize electronic signatures as valid with prior consent from each party.

AML Regulator

The Unidad de Información Financiera (UIF) is the primary regulator for AML controls in Argentina. The UIF provides information and guidance on AML regulations and ensures that financial institutions comply with AML requirements.

Enhanced Due Diligence

Financial institutions must perform enhanced due diligence on customers who:

  • Exceed Transaction Thresholds: Conduct transactions exceeding $10,000.
  • Politically Exposed Persons (PEPs): Are considered PEPs or have close ties to PEPs.
  • High-Risk Profile: Have a high-risk profile or are associated with a high-risk activity.

Correspondent Banking

Argentina has implemented correspondent banking regulations to prevent money laundering and terrorist financing.

Suspicious Transaction Reporting

Financial institutions must report suspicious transactions to the UIF within 24 hours. The UIF then investigates and takes necessary actions to prevent money laundering and terrorist financing.

Data Protection Laws

Argentina’s data protection laws regulate the handling of personal data, including sensitive information. Financial institutions must comply with these regulations when collecting, storing, and transmitting customer data.

Key Restrictions

Article 4 of Argentina’s AML law prohibits the use of digital signatures for documents related to death, family law, or other highly personal matters.

Conclusion

Argentina’s KYC procedures are designed to prevent money laundering and terrorist financing. Financial institutions must comply with these regulations to maintain a secure and trustworthy environment for their customers. By understanding the requirements and guidelines outlined in this guide, financial institutions can ensure that they meet Argentina’s AML standards.