Financial Crime World

Argentina Strengthens Fight Against Financial Crimes with New Suprema Law

Introduction

The Argentine government has introduced a new law aimed at strengthening the country’s fight against financial crimes, including insider trading and money laundering. The Suprema law, also known as the “Transparency Law,” comes into effect after years of criticism from international organizations such as the Group of Action Financiera Internacional (GAFI) for Argentina’s lack of effective measures to prevent and punish financial crimes.

Key Provisions

  • Introduces penalties ranging from two to four years in prison, fines equivalent to the amount of the operation, and special incapacitation for up to five years
  • Prohibits insider trading, market manipulation, and other fraudulent activities that can distort the price of negotiable securities
  • Includes two new criminal figures:
    • Preventing unauthorized financial intermediation
    • Fraudulent fundraising processes
  • Introduces the concept of cohecho financiero (financial corruption) to limit illegal incentives associated with speculative market operations

Addressing Global Concerns

  • The law addresses the issue of terrorist financing, which has been a major concern globally
  • Increases penalties for crimes committed with terrorist intent
  • Introduces a new type of criminal offense specifically targeting individual terrorist acts and organizational terrorism, whether national or international
  • Introduces rules on asset forfeiture and special investigative measures to protect witnesses and accused individuals
  • Strengthens the responsibility of legal persons, including banks and financial institutions

Impact and Reaction

The introduction of this new law is seen as a major step forward in Argentina’s efforts to combat financial crimes and comply with international standards. If approved, it will help avoid further criticism from GAFI and other international organizations.

Quote: “This new law is a significant improvement over our previous laws and regulations,” said Raúl Saccani, Senior Manager of Forensic Services at KPMG Argentina. “It shows that the Argentine government is committed to strengthening its fight against financial crimes and complying with international standards.”