Financial Crime World

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Argentina’s Compliance with International Anti-Money Laundering (AML) Standards

As part of our efforts to combat money laundering and terrorist financing, Argentina has taken steps to align its AML framework with the Financial Action Task Force (FATF)’s recommendations. This article outlines the key points on how Argentina achieves compliance with international AML standards.

Adherence to FATF Recommendations

Argentina has adopted a comprehensive approach to addressing the FATF’s recommendations, which cover areas such as:

  • Customer Due Diligence: Obligated entities are required to conduct customer due diligence to verify the identity of their customers and understand their business and financial activities.
  • Suspicious Transaction Reporting: Entities must report suspicious transactions to the Financial Information Unit (UIF) to ensure that potential money laundering or terrorist financing activities are identified and addressed.
  • International Cooperation: Argentina actively participates in international efforts to combat money laundering and terrorist financing, including membership in the FATF and adherence to its mutual evaluation process.

Legislation and Regulation

Argentina has enacted comprehensive AML and CFT legislation (Law No. 25,246) to address the FATF’s recommendations. This legislation provides the legal basis for AML obligations on financial institutions and designated non-financial businesses and professions.

Regulatory Oversight

Regulatory authorities, including the Financial Information Unit (UIF) and the Central Bank of Argentina, oversee the implementation of AML measures. They issue regulations, guidelines, and directives to ensure compliance with FATF standards, conduct regular assessments and examinations of obligated entities, and monitor their adherence to these standards.

Risk-Based Approach

Argentina has adopted a risk-based approach to AML/CFT, as recommended by the FATF. This involves assessing the risks associated with money laundering and terrorist financing and tailoring AML measures accordingly. Resources are allocated more effectively to areas of higher risk.

International Cooperation

Argentina actively participates in international efforts to combat money laundering and terrorist financing, including membership in the FATF and adherence to its mutual evaluation process.

Supervision and Enforcement

Regulatory authorities have the power to impose penalties for non-compliance with AML/CFT measures. This ensures that entities adhere to international standards and protect the integrity of the financial system.

By following these steps, Argentina demonstrates its commitment to complying with international AML standards set by the FATF, contributing to a safer and more secure global financial environment.