Financial Crime World

Argentina’s Battle Against Money Laundering: Challenges and Progress

Argentina is facing persistent challenges with money laundering (ML), including proceeds from narcotics trafficking, corruption cases, and suspected ties to terrorist groups like Hizballah. Corruption serves as a major conduit for illegal funds, particularly those from Venezuela.

The Tri-Border Area (TBA) as a Hub for Money Laundering

  • Significant hub for illicit activities
  • Encompasses trade-based money laundering (TBML), counterfeiting, drug trafficking, and ties to terrorist groups like Hizballah
  • Porous borders and close proximity to busiest ports and major transportation routes heighten its importance to transnational criminal networks

Argentina’s International Cooperation

Argentina is committed to international cooperation in the fight against money laundering:

  • Member of the Financial Action Task Force (FATF) and the “Grupo de Acción Financiera de Sudamérica” (GAFISUD)
  • Adheres to the 40+9 Recommendations aiming to prevent and control ML and terrorist financing

Argentina’s Anti-Money Laundering Legislation

  • Anti-Money Laundering Law No. 25,246, enacted in April 2000
  • Defines ML as disguising or enhancing the proceeds of a crime

Primary Provisions

  • Amendments to the Penal Code
  • Criminalizing ML-related activities
  • Establishment of an independent Financial Information Unit (UIF)
  • Analyzing suspicious activity reports
  • Regulatory Framework
  • Reporting obligations for financial institutions and various sectors

Expansion of Reporting Entities

  • 2000: UIF expanded to 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

Progress and Challenges

  • Argentine authorities such as the Financial Information Unit (UIF), Argentine Central Bank (BCRA), and the AML/CFT Committee playing significant roles
  • Significant strides in tackling ML and counter-terrorist financing (CFT) issues
  • Removed from the FATF’s follow-up procedure in 2021

Regulatory Authorities and Bodies

  • Financial Information Unit (UIF)
  • Argentine Central Bank (BCRA)
    • Supervises the financial sector, ensuring AML/CFT compliance
    • Regulates AML and CFT obligations for commercial entities
  • BCRA’s AML/CFT Committee
    • Centralizes evaluations and objectives related to AML/CFT