Argentina’s Efforts to Strengthen Anti-Money Laundering and Countering the Financing of Terrorism Framework Pay Off
FATF Removes Country from Enhanced Follow-Up Process
Argentina has made significant progress in addressing deficiencies in its anti-money laundering/counter-terrorism financing (AML/CFT) measures as identified in its Mutual Evaluation report. As a result, the Financial Action Task Force (FATF) Plenary has decided to remove Argentina from the enhanced follow-up process.
Background
The assessment team that conducted the mutual evaluation had previously rated Argentina non-compliant or partially compliant on all Core and Key Recommendations, leading to its inclusion in the enhanced follow-up process. However, since the adoption of the mutual evaluation report in 2010, Argentina has taken a number of important steps to strengthen its legal and regulatory framework.
Progress Made
Argentina has reformed and strengthened the money laundering offence, expanded the scope of reporting parties covered, and transferred AML/CFT supervision to the financial intelligence unit (FIU). The country has also enhanced the terrorist financing offence by criminalizing the financing of terrorist acts, terrorists, and terrorist organizations. Additionally, the FIU has issued a series of resolutions on customer due diligence, record-keeping requirements, and other AML/CFT measures.
Key Achievements
- Strengthened money laundering offence
- Expanded scope of reporting parties covered
- Transferred AML/CFT supervision to the financial intelligence unit (FIU)
- Enhanced terrorist financing offence by criminalizing the financing of terrorist acts, terrorists, and terrorist organizations
- Issued resolutions on customer due diligence, record-keeping requirements, and other AML/CFT measures
Recognition by FATF Plenary
The FATF Plenary has recognized Argentina’s efforts and determined that the country has taken sufficient steps to address technical compliance with Core and Key Recommendations.
Next Steps
Argentina is no longer subject to the enhanced follow-up process. However, since June 2011, the country has also undergone the FATF International Cooperation Review Group (ICRG) process, during which it was identified as having strategic AML/CFT deficiencies. The FATF has determined that Argentina has substantially addressed these deficiencies on a technical level.
Final Step
To complete the ICRG process, an on-site visit is required to confirm that the country’s implementation of reforms and actions is underway to address previously identified deficiencies. If successful, this would result in Argentina no longer being considered a country with strategic AML/CFT weaknesses.