Financial Crime World

Beneficial Ownership Registration in Argentina: A Comprehensive Guide

Introduction

The Argentine government has introduced a new regulation requiring companies and other entities to register their beneficial owners with the tax administration. This report provides an overview of the key points related to beneficial ownership registration in Argentina, including verification mechanisms, cross-checking data with financial institutions, and recommendations for implementation.

Key Points

1. Beneficial Ownership Registration

  • The government has introduced a new regulation requiring companies and other entities to register their beneficial owners with the tax administration.
  • This regulation aims to prevent money laundering and other financial crimes by ensuring accurate and verifiable information about beneficial ownership.

2. Verification of Beneficial Ownership Information

  • It is crucial to verify the accuracy and veracity of registered information through validation mechanisms, cross-checking with other databases, and data analysis to detect suspicious patterns and red flags.
  • This verification process helps ensure that the beneficial ownership information reported by local financial institutions under the Common Reporting Standard (CRS) matches the information submitted directly to the tax administration.

3. Cross-check Data with Financial Institutions

  • AFIP can compare the beneficial ownership information reported by local financial institutions under the CRS with the information submitted directly to the tax administration.
  • This cross-checking process helps identify discrepancies and ensures that accurate information is maintained in both databases.

Recommendations

  1. Publish guidance: Develop clear guidelines for companies, lawyers, accountants, and other professionals on how to comply with the new regulation.
  2. Organize trainings: Provide regular training sessions to ensure that all stakeholders understand the requirements and implications of beneficial ownership registration.
  3. Establish registration requirements for trusts: Ensure that trusts are also subject to beneficial ownership registration to prevent money laundering and other financial crimes.
  4. Sign memoranda of understanding with other authorities: Collaborate with other government agencies, such as law enforcement and regulatory bodies, to ensure a unified approach to combating financial crime.
  5. Publish basic beneficial ownership information through the National Register of Companies: Make publicly available basic information about registered beneficial owners to promote transparency and accountability.
  6. Verify beneficial ownership information: Regularly verify the accuracy and veracity of registered information to detect suspicious patterns and red flags.
  7. Cross-check data with financial institutions: Continuously cross-check data with local financial institutions under the CRS to ensure consistency and accuracy.

Additional Suggestions

Implement a User-Friendly Online Platform

  • Develop an online platform that allows entities to easily register their beneficial owners and provides access to verified information for authorized agencies.
  • This platform should be user-friendly, secure, and regularly updated to reflect changes in regulations and requirements.

Establish a Beneficial Ownership Database

  • Create a centralized database that stores all registered beneficial ownership information, ensuring easy cross-checking and analysis.
  • This database should be regularly updated and secured to prevent unauthorized access or tampering.

Provide Training and Support

  • Offer regular training sessions and support for companies, lawyers, accountants, and other professionals to ensure they understand the new regulation and its requirements.
  • This training should cover topics such as registration procedures, verification mechanisms, and cross-checking data with financial institutions.

Conduct Regular Audits and Risk Assessments

  • Periodically review registered beneficial ownership information to identify potential risks and take corrective action to prevent money laundering and other financial crimes.
  • These audits should be conducted regularly to ensure that the beneficial ownership registration process is effective in preventing financial crime.