Financial Crime World

Reporting Financial Crime in Argentina: What You Need to Know

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Understanding the Laws, Regulations, and Authorities Involved in Combating Money Laundering and Terrorist Financing in Argentina

Argentina continues to face challenges related to anti-money laundering (AML) efforts. It is essential for individuals and businesses to understand the laws and regulations surrounding financial crime reporting.

Argentina’s Anti-Money Laundering Efforts

The country actively participates in international initiatives to combat money laundering, including membership in the Financial Action Task Force (FATF) and the “Grupo de Acción Financiera de Sudamérica” (GAFISUD). The cornerstone of Argentina’s AML efforts is Anti-Money Laundering Law No. 25,246, enacted in April 2000.

Key Provisions of the AML Law

The law defines money laundering as the process of concealing or intensifying the proceeds of a crime after it has been committed. Key provisions include:

Obligations of Financial Organizations and Businesses

All financial institutions under the supervision of the Central Bank, the Securities and Exchange Commission (Comisión Nacional de Valores, CNV), and the National Insurance Superintendence (Superintendencia de Seguros de la Nación, SSN) are legally obligated to:

  • Identify customers
  • Maintain records of transactions
  • Report suspicious activities to the UIF
  • Adhere to confidentiality requirements when reporting

Reporting Financial Crime

Money laundering can only be committed by those who assist criminals after the fact in concealing the source of funds. A money laundering transaction or a sequence of related transactions must exceed 50,000 pesos (approximately USD 16,000). Transactions below this threshold are considered concealment, a lesser offense.

Expanded Reporting Obligations

Since the enactment of the AML law, the UIF has issued several resolutions to expand the list of organizations required to report suspicious transactions. These include tax authorities, Customs, banks, currency exchange houses, casinos, securities dealers, insurance companies, postal money transmitters, consultants, public notaries, and businesses dealing in art, vintage items, and valuable gems.

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 recognition demonstrates the country’s commitment to combating financial crime and improving its international reputation.

Conclusion

Reporting financial crime in Argentina requires a thorough understanding of the laws, regulations, and authorities involved. By knowing what to report and how to report it, individuals and businesses can play an essential role in combatting money laundering and terrorist financing in the country.