Financial Crime World

Here is the converted article text in markdown format:

Anti-Money Laundering (AML) Regulations in Argentina

==============================================

Argentina continues to strengthen its Anti-Money Laundering (AML) regulations to prevent money laundering crimes. This comprehensive guide covers various aspects of AML regulations, including fines and penalties, recent developments, and frequently asked questions.

AML Fines and Penalties

The penalty applicable to individuals and businesses convicted of money laundering crimes varies from two to ten years imprisonment and a fine from two to ten times the amount of the illegal transaction made or intended to be made.

Recent Developments

Argentina continues to propose new regulations to confront money laundering, including the UIF’s proposition to include cryptocurrency businesses under AML Laws, which is expected to take place in 2022.

FAQs

What is AML Compliance and How Does it Work?

Anti-Money Laundering (AML) is a set of measures aimed at preventing the following illicit activity:

  • Presenting money acquired through criminal activity into ‘clean’ money;
  • Benefiting from crimes such as theft, fraud, and tax evasion;
  • Administering stolen goods;
  • Conducting operations with criminals or terrorists.

To comply with AML regulations, businesses must avoid knowingly assisting criminal activities and report suspicions of money laundering activity.

What is the Purpose of AML?

The purpose of AML is to stop the reintroduction of the proceeds of illegal activities into the financial system. The implementation of AML/CTF practices is mandatory and overseen by regulatory authorities.

Who is Required to Have an AML Policy?

AML compliance is required from all regulated companies subject to AML regulations. Within such companies, senior management has to ensure that all AML-related policies and controls operate in a proper manner.

What’s the Condition of Money Laundering in Argentina?

Over the last decade, Argentina has made significant strides in developing its AML regulations. The country is one of the 39 members of the Financial Action Task Force (FATF), and after a critical mutual evaluation published by the FATF in 2010, the country has been continuously working on developing its Anti-Money Laundering (AML) regulations to meet the relevant requirements.

What is Law 25.246?

Law 25.246 (also known as “AML Law”) was enacted in April 2000. The main provisions of the law are:

  • Amendment of the Penal Code: Providing detailed definitions of money laundering and auxiliary crimes.
  • Creation of the Financial Information Unit (UIF): A central authority responsible for receiving, analyzing, and disseminating financial information to prevent and combat money laundering.
  • Establishment of a stricter regulatory framework for the financial sector: Regulated entities must implement effective measures to prevent and detect money laundering activities.

What is an Obligated Subject According to Article 20 Law 25.246?

The list of businesses that need to comply with Argentine AML regulations has expanded since the country became a FATF member in 2000. This includes:

  • Financial institutions and private pension fund managers
  • Exchange offices
  • Natural and legal persons engaged in games of chance (e.g., casinos)
  • Stockbrokers and stock brokerage firms and intermediaries engaged in the purchase, lease, or borrowing of securities in the field of stock exchanges
  • Intermediaries registered with futures and options markets
  • Insurance companies