Argentina’s Anti-Money Laundering Regulations Criticized in New Report

A recent evaluation by the Financial Action Task Force (FATF) has raised concerns over Argentina’s efforts to combat money laundering and terrorist financing. The report assesses the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, highlighting significant deficiencies despite some progress since a previous evaluation in 2004.

Key Concerns

Lack of effective coordination among domestic agencies
Overlapping jurisdictions
Inconsistent requirements across different financial sectors
Legal framework lacks clarity, making it difficult for financial institutions to comply with AML/CFT regulations

FATF Recommendations

To strengthen Argentina’s AML/CFT system, the FATF has made several recommendations, including:

Addressing technical shortcomings in money laundering and terrorist financing offenses
Enhancing the authority of the Financial Intelligence Unit (FIU) to process cases related to predicate offenses and money laundering activities
Updating financial sector laws to provide for AML/CFT supervision and sanction

International Cooperation and Monitoring

Improve international cooperation
Enhance monitoring framework for non-financial businesses and professions (DNFBPs)
Provide adequate resources to relevant AML/CFT agencies

Additional Recommendations

Extend AML/CFT requirements to financial institutions and DNFBPs not currently covered
Give more authority to Argentina’s National Coordination Representation office to coordinate AML/CFT policies effectively

Conclusion

The report concludes that Argentina needs to take concrete steps to address these deficiencies in order to improve its overall effectiveness in combating money laundering and terrorist financing. The country must prioritize the implementation of these recommendations to strengthen its AML/CFT system and prevent illegal activities.