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Argentina Introduces New Requirements for Beneficial Ownership of Virtual Assets Providers

Buenos Aires, Argentina - A Major Step Towards Transparency

The Argentine Congress has recently reformed its legal framework on concealment and laundering of assets from criminal sources, bringing virtual assets and their providers under scrutiny. As part of this reform, providers of virtual assets in Argentina are now required to register with the authorities and comply with certain obligations.

What Are Virtual Assets?

Virtual assets are defined as digital representations of value that can be traded and/or transferred digitally and used for payments or investments. Virtual Asset Service Providers (VASPs) include individuals and legal entities that offer services such as exchange, transfer, custody, and administration of virtual assets.

New Requirements for VASPs

Under the new rules, VASPs with a volume of operations exceeding 35,000 Purchase Value Units (PVU) per calendar month must register with the Registry of Virtual Asset Service Providers. Additionally, persons or legal entities resident or incorporated outside Argentina that target residents in the country may also be required to register.

Beneficial Ownership Requirements

The regulation includes strict beneficial ownership requirements, obliging VASPs to identify and verify the authenticity of their clients’ beneficial owners. Furthermore, VASPs must report suspicious activities related to illicit activities such as money laundering, financing of terrorism or proliferation of weapons of mass destruction.

Main Obligations for VASPs

In summary, VASPs in Argentina are now subject to the following main obligations:

  • Register with the Financial Information Unit (FIU)
  • Collect documentation from clients and identify and verify the authenticity of beneficial owners
  • Report suspicious activities related to illicit activities
  • Refrain from disclosing to customers or third parties the actions being carried out in compliance with these regulations
  • Create internal prevention procedures
  • Designate compliance officers responsible to the FIU

International Standards

These new rules aim to ensure compliance with international standards set out by the Financial Action Task Force (FATF) and prevent Argentina from being placed on the “grey list” of countries vulnerable to financial crime and money laundering.