Argentina’s New Anti-Money Laundering Regulations Pose Fresh Challenges for Businesses
In an effort to strengthen its financial integrity, Argentina has recently implemented revised anti-money laundering (AML) regulations. The new guidelines, effective since March 26, have significant implications for businesses operating in the country.
Revised AML Regulations and Obliged Persons
According to a report by DLA Piper, companies must review whether they fall under the category of “obliged persons” and comply with existing and new AML regulations. The revised definition now includes:
- Lawyers and legal advisers involved in transactions related to asset management, entity incorporation, and other activities conducted on behalf of clients
- Non-financial credit providers
- Central depository agents
- Corporate service providers
- Trustees
- Virtual asset service providers (aimed at regulating crypto wallets and exchanges)
Reporting Requirements and Procedures
The Unidad de Información Financiera (UIF), Argentina’s financial intelligence unit, has outlined the reporting requirements and procedures for obliged persons. These include:
- Registration with the UIF
- Appointment of compliance officers
- Establishment of internal AML manuals
- Implementation of know-your-client procedures
- Reporting of unusual or suspected transactions
Grey Areas and Confidentiality Agreements
While lawyers are exempt from reporting information protected by attorney-client privilege, there are potential grey areas in transactional activities. To mitigate these risks, maintaining confidentiality agreements between lawyers and clients is advised.
Additional Requirements for Corporate Service Providers and Trustees
- Conduct risk profiling of clients and report unusual transactions
- Submit annual risk self-assessment reports and independent party evaluations
Obliged Persons’ Responsibilities
Obliged persons must:
- Monitor client transactions
- Maintain records of unusual activities
- Submit monthly and annual reports to the UIF, detailing all client transactions and broader descriptions of activities
Centralized Register of Ultimate Beneficiary Owners
The Argentine federal tax authority will manage a centralized register of ultimate beneficiary owners, facilitating information sharing to strengthen AML efforts.
Conclusion
In conclusion, the updated AML regulations in Argentina have significant implications for businesses and legal practitioners alike. It is essential for all stakeholders to understand and adhere to these regulations to ensure lawful operations within the AML framework.