Financial Crime World

ARGENTINA TIGHTENS AML/KYC REGULATIONS TO COMBAT MONEY LAUNDERING

Argentina Strengthens Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations

BUENOS AIRES - Argentina has reinforced its anti-money laundering (AML) and know-your-customer (KYC) regulations to combat money laundering and terrorist financing. The country’s AML framework is now more robust, focusing on preventing illicit activities such as trade-based money laundering, counterfeiting, and drug trafficking.

The Tri-Border Area: A Major Entry Point for Illicit Activities

The Tri-Border Area (TBA), which borders Argentina, Brazil, and Paraguay, has been identified as a significant entry point for illicit activities. In response, the Argentine government has increased its efforts to combat money laundering in this region.

Key AML Legislation

Argentina’s AML legislation is based on Anti-Money Laundering Law No. 25,246, enacted in April 2000. This law defines money laundering as the process of concealing or intensifying the proceeds of a crime after it has been committed.

  • Amendments to the Penal Code: Money laundering is included in Chapter XIII of the Penal Code, making it a criminal offense to assist individuals in evading investigation or avoiding legal action.
  • Establishment of the Financial Information Unit (UIF): A functionally independent UIF was established within the Ministry of Justice and Human Rights of the Nation (Section 5).
  • Stringent Regulatory Framework: The law imposes a rigorous regulatory framework on the financial industry, requiring individuals and entities to report suspicious activities to the UIF.

Regulatory Authorities

Argentina has made significant strides in strengthening its AML and counter-terrorist financing regimes. Key regulatory authorities and bodies include:

  • Financial Information Unit (UIF): Responsible for receiving and analyzing reports of suspicious activities.
  • Argentine Central Bank (BCRA): Plays a crucial role in supervising the financial sector and ensuring AML/CFT compliance.

Progress and International Recognition

Argentina has made significant progress in strengthening its AML and counter-terrorist financing capabilities. The nation was formally removed from the FATF’s follow-up procedure, initiated in 2004, to address deficiencies in Argentina’s AML and CFT systems. This demonstrates the country’s commitment to combating money laundering and terrorist financing.

Argentina’s efforts to strengthen its AML and KYC regulations demonstrate a commitment to preventing illicit activities and protecting the financial system. The country’s progress has been recognized internationally, with the FATF removing it from its follow-up procedure.