Argentina Enforces Stricter Anti-Money Laundering Regulations on Businesses and Professionals
New Guidelines and Recommendations Expand Scope of Obliged Persons
Effective March 26, the Argentine government has implemented new anti-money laundering (AML) regulations that expand the scope of obliged persons subject to stricter reporting and monitoring requirements. Companies operating in Argentina must take immediate action to ensure compliance with the revised rules.
Who is an Obliged Person?
The new guidelines and recommendations have extended the definition of criminal activity in Argentina’s criminal code and appointed new individuals and activities as obliged persons. The following are now included:
- Lawyers and legal advisers who perform certain transactions on behalf of clients, such as asset management, administration, and entity incorporation
- Non-financial credit providers
- Central depository agents
- Corporate service providers
- Domiciliation services providers
- Trustees
- Virtual assets service providers
Reporting Requirements
Obliged persons must:
- Register with the Unidad de Información Financiera (UIF)
- Appoint a compliance officer
- Develop an internal AML manual
- Establish a know-your-client procedure
- File reports for unusual or suspected transactions within 24 hours
Confidentiality and Attorney-Client Privilege
The law explicitly states that lawyers do not have to report information obtained under attorney-client privilege. However, it is recommended to establish confidentiality agreements between lawyers and clients, even if the information is protected by privilege.
Risk Profiles and Reporting
Corporate service providers, domiciliation services providers, and trustees must create risk profiles for all clients and report unusual or suspected transactions to the UIF. Examples of unusual or suspected transactions include:
- A capital injection into an Argentine subsidiary that exceeds a certain amount or comes from a specific country
- Unusual patterns of transactions or financial activity
Compliance Obligations
To comply with the regulations, obliged persons must:
- Elaborate risk profiles for all clients
- Identify and report unusual transactions
- File monthly and annual reports
- Maintain records and data for 10 years and make them available upon request
Centralized Register of Ultimate Beneficiary Owners
The Argentine federal tax authority is now authorized to share information with the UIF without violating fiscal secrecy rules, and will manage a new centralized register of ultimate beneficiary owners.
Experts’ Warning
AML regulations affect anyone with a presence in Argentina, emphasizing the need for businesses and professionals to understand their obligations and operate safely within the new provisions.