Risk Management in Argentina’s Financial Services Industry: New Developments and Requirements
Introduction
The Argentine government has introduced new regulations and guidelines to combat corruption and ensure transparency in financial transactions within the country’s financial services industry.
International Cooperation in Combating Corruption
In 2019, a prosecutor signed an agreement with Brazil’s Public Ministry to access evidence collected in that country regarding bribery allegations involving Argentine public officials. This cooperation highlights the importance of international collaboration in tackling corruption.
Regulations and Guidelines for Financial Services Industry (FSPs)
The FSPs are subject to specific regulations and guidelines aimed at ensuring their integrity programs are effective in mitigating risks. The Anti-Corruption Office, established by Decree 277/2018, has issued Guidelines on Integrity Programs to assist companies in complying with the provisions of Sections 22 and 23 of Law 27401.
Key Elements of an Effective Integrity Program
The Guidelines emphasize the importance of tailoring integrity programs to each company’s unique risks, needs, and characteristics. A risk assessment is a crucial step in designing and implementing an effective program. The following elements are required:
- An ethical code
- Policies and procedures for integrity
- Rules of integrity in public tender processes and other interactions with the public sector
- Training and awareness programs
Compliance with Federal Laws
FSPs must assess, balance, and reflect their specific risks in their integrity programs, just like any other type of company. Additionally, they must comply with other federal laws aimed at combating corruption, such as:
- Law No. 27504, which regulates political campaign financing
- The Corporate Criminal Liability Act
Maintaining Integrity and Reputation
As Argentina’s financial services industry continues to evolve, it is essential for companies to stay up-to-date on changing regulations and guidelines to maintain their integrity and reputation.
Conclusion
The Argentine government’s efforts to combat corruption and ensure transparency in financial transactions require the financial services industry to adapt and evolve. By understanding the new developments and requirements, companies can maintain their integrity and reputation while contributing to a more transparent and accountable financial system.