Financial Crime World

Argentina’s Efforts to Combat Money Laundering and Terrorist Financing

International Cooperation and Engagement

Argentina is actively involved in international initiatives aimed at combating money laundering and terrorist financing. The country has joined the Financial Action Task Force (FATF) and the “Grupo de Acción Financiera de Sudamérica” (GAFISUD), a FATF-style regional body dedicated to implementing Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) standards.

Key Legislation: 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. Key provisions include:

  • 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.
  • 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 Bodies

Argentina has strengthened its AML/CFT regimes through the establishment of key regulatory authorities:

  • 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/CFT capabilities. The nation was formally removed from the FATF’s follow-up procedure, initiated in 2004, to address deficiencies in Argentina’s AML/CFT systems. This reflects the country’s commitment to combating money laundering and terrorist financing.

Challenges Remain

However, challenges persist, particularly in the Tri-Border Area, where illicit activities continue to pose a threat to regional stability and security. Continued international cooperation and engagement are essential to addressing these challenges and ensuring that Argentina remains on track to meeting its AML/CFT obligations.