Financial Crime World

Argentina’s Securities Commission Issues Revised Definition of Ultimate Beneficial Owner

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In a move aimed at strengthening the country’s anti-money laundering and counter-terrorism financing efforts, Argentina’s Securities Commission (CNV) has issued General Resolution No. 966/2023, modifying its definition of ultimate beneficial owner (UBO).

Strengthening Anti-Money Laundering and Counter-Terrorism Financing Efforts

The resolution amends Section “Prevention of Money Laundering and Financing of Terrorism” in Annex III of the CNV Regulations regarding public offering of negotiable obligations prospectus for project financing. This update takes effect immediately, clarifying the definition of UBO to include:

  • Individuals owning at least 10% of the capital or voting rights of a legal entity, trust, investment fund, or other legal structure
  • Those who exercise control over such structures through indirect means

Enhanced Transparency and Identification of UBOs

As the Reporting Entity, CNV is required to identify the UBO of any individual and/or legal entity under its jurisdiction. To this end, public offerings of negotiable obligations prospectus for project financing must now include a sworn statement on the cover page identifying the UBO of the person and/or legal structure involved.

This increased transparency is expected to enhance CNV’s ability to detect and prevent money laundering and terrorist financing activities.

Expert Reaction

The revised definition of UBO has been welcomed by experts as a significant step forward in Argentina’s efforts to combat these serious financial crimes. With this update, the country is better positioned to meet its international obligations and ensure the integrity of its financial system.

Key Points:

  • CNV issues General Resolution No. 966/2023 modifying its definition of ultimate beneficial owner (UBO)
  • Definition includes individuals owning at least 10% of the capital or voting rights of a legal entity, trust, investment fund, or other legal structure
  • Those who exercise control over such structures through indirect means are also included in the definition
  • Public offerings of negotiable obligations prospectus for project financing must now include a sworn statement on the cover page identifying the UBO