Financial Crime World

Argentina Takes Steps to Combat Financial Crime through Beneficial Ownership Disclosure

Transparency Efforts Gain Momentum

Argentina is making strides in combating financial crime by enhancing transparency around beneficial ownership, a critical aspect of fighting money laundering and corruption. A recent report highlights the country’s progress while also pointing out areas that require improvement.

The Extractive Industries Transparency Initiative (EITI)

The EITI is a global organization that promotes transparency in resource extraction. Argentina has been a member since 2019 and is part of a program led by the EITI and Open Ownership (OO) aimed at promoting beneficial ownership transparency in extractive industries.

Key Requirements

  • Public access to information on beneficial ownership in extractive industries such as oil, gas, and mining.
  • Creation of a public register that includes information on beneficial owners, their shareholdings, and details on how ownership or control is exercised.

Gaps in Argentina’s Disclosure System

The report identifies several gaps in Argentina’s disclosure system:

  • The Registers of Mineral Investments, Petroleum Companies, and operators of exempt fuels are not included in the special registers maintained by the Federal Administration of Public Revenues (AFIP).
  • Alternatives for action to progress towards compliance with Requirement 2.5 include expanding the scope of beneficial ownership disclosure to other economic sectors.

Recommendations for Action

The report recommends that Argentina take the following steps:

  1. Expand the scope of beneficial ownership disclosure to other economic sectors.
  2. Create a public register that includes information on beneficial owners, their shareholdings, and details on how ownership or control is exercised.
  3. Ensure that all relevant information on beneficial ownership is available to the public.

Conclusion

While Argentina has made progress in improving its beneficial ownership disclosure system, there is still work to be done to ensure compliance with EITI standards. By implementing these recommendations, Argentina can enhance transparency and combat financial crime, ultimately promoting a more stable and prosperous economy for all citizens.