Financial Crime World

ARGENTINA TACKLES MONEY LAUNDERING WITH ROBUST LEGISLATION AND REGULATORY FRAMEWORK

Argentina is at the forefront of combating money laundering, with corruption and illicit activities posing a significant threat to its financial stability. The Tri-Border Area (TBA), shared by Argentina, Brazil, and Paraguay, has become a hotspot for money laundering, counterfeiting, and drug trafficking.

Key Legislation

The cornerstone of Argentina’s anti-money laundering (AML) efforts is Anti-Money Laundering Law No. 25,246, enacted in April 2000. This legislation defines money laundering as concealing or intensifying the proceeds of a crime after it has been committed. The law includes key provisions such as:

  • Amendments to the Penal Code: Money laundering is made a criminal offense
  • Establishment of the Financial Information Unit (UIF): A dedicated unit within the Ministry of Justice and Human Rights of the Nation
  • Stringent regulatory framework on the financial industry: Requiring individuals and entities to report suspicious activities to the UIF

Regulatory Framework

All financial institutions under the supervision of the Central Bank, Securities and Exchange Commission (Comisión Nacional de Valores, CNV), and National Insurance Superintendence (Superintendencia de Seguros de la Nación, SSN) are obligated to:

  • Identify customers
  • Maintain records of transactions
  • Report suspicious activities to the UIF
  • Adhere to confidentiality requirements when reporting

Key Points to Note

  • Money laundering can only be committed by those who assist criminals after the fact in concealing the source of funds
  • A money laundering transaction or a sequence of related transactions must exceed 50,000 pesos (approximately USD 16,000)
  • Transactions below this threshold are considered concealment, a lesser offense

Regulatory Authorities

Argentina has made significant strides in strengthening its AML and counter-terrorist financing regimes. Key regulatory authorities and bodies include:

  • Financial Information Unit (UIF): Responsible for receiving and analyzing reports of suspicious activities
  • Argentine Central Bank (BCRA): Plays a crucial role in supervising the financial sector and ensuring AML/CFT compliance
  • BCRA established the “Comité de Control y Prevención de Lavado de Dinero y Financiamiento del Terrorismo (AML/CFT Committee),” which centralizes evaluations and objectives related to AML/CFT

Progress and International Recognition

Argentina has made significant progress in strengthening its AML and counter-terrorist financing capabilities. The nation was formally removed from the FATF’s follow-up procedure, initiated in 2004, to address deficiencies in Argentina’s AML and CFT systems.

By implementing robust legislation and a regulatory framework, Argentina is well-equipped to combat money laundering and maintain financial stability.