Financial Crime World

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Financial Crimes Definition in Argentina: A Q&A Guide

In recent years, financial crimes have become a significant concern for companies operating in Argentina, as well as for individuals involved in business transactions. The country’s financial system is subject to various laws and regulations aimed at preventing and combating financial crimes such as corporate fraud, bribery and corruption, insider dealing and market abuse, money laundering, terrorist financing, breaches of financial/trade sanctions, among others.

Corporate Fraud

  • What is it? In Argentina, corporate fraud refers to the intentional manipulation or misrepresentation of a company’s financial information with the intention of deceiving investors, creditors, or other stakeholders. This can include falsifying financial statements, hiding liabilities, or making unauthorized transactions.

Bribery and Corruption

  • Is it a Crime in Argentina? Yes, bribery and corruption are criminal offenses in Argentina. The country has enacted several laws aimed at preventing and punishing corrupt practices, including the Bribery Law (Law 27,401) and the Anti-Corruption Act (Law 24,937). These laws prohibit offering, giving, receiving, or accepting bribes, and establish severe penalties for those found guilty.

Insider Dealing and Market Abuse

  • What are the Penalties? In Argentina, insider dealing refers to the use of confidential information about a publicly traded company to trade its securities. Market abuse includes other forms of illegal trading practices, such as market manipulation or false statements. The Securities Commission (Comisión Nacional de Valores) is responsible for enforcing these laws and imposing penalties on those found guilty.

Money Laundering

  • How can it be Detected? Money laundering refers to the concealment of illegally obtained funds to make them appear legitimate. In Argentina, money laundering is a criminal offense punishable by law. The country’s financial institutions are required to report suspicious transactions and maintain records of all financial transactions.

Terrorist Financing

  • What is it and how is it Prevented? Terrorist financing refers to the provision or collection of funds intended to support terrorist activities. In Argentina, terrorist financing is a criminal offense punishable by law. The country’s financial institutions are required to report suspicious transactions and maintain records of all financial transactions.

Financial Record Keeping

  • Why is it Important? Financial record keeping is essential for businesses operating in Argentina. Companies must maintain accurate and detailed records of all financial transactions, including income, expenses, assets, and liabilities. This information is used by regulators and auditors to ensure compliance with laws and regulations.

Due Diligence

  • What is its Importance? Due diligence is the process of gathering and verifying information about a company or individual before entering into a business transaction. In Argentina, due diligence is essential for detecting potential financial crimes and ensuring compliance with laws and regulations.

Establishing Corporate Liability

  • How can it be Done? In Argentina, companies can be held liable for financial crimes committed by their employees or agents. This means that companies must establish internal controls and procedures to prevent and detect financial crimes.

Cartels

  • What is the Law Regarding them? Cartels refer to illegal agreements between companies to fix prices, limit competition, or allocate markets. In Argentina, cartels are criminal offenses punishable by law. The country’s antitrust authority (Secretaría de Comercio Interior) is responsible for enforcing these laws and imposing penalties on those found guilty.

Immunity and Leniency

  • What are they? In Argentina, immunity and leniency programs are designed to encourage individuals or companies to cooperate with investigations and provide information about financial crimes. These programs offer reduced penalties or even immunity from prosecution in exchange for cooperation.

Cross-Border Co-operation

  • How does it Work? Argentina has entered into several international agreements aimed at combating financial crimes. The country cooperates with other countries to share information, investigate, and prosecute financial crimes that have a cross-border component.

Whistleblowing

  • Is it Protected in Argentina? Yes, whistleblowing is protected in Argentina. The country’s laws protect individuals who report suspected financial crimes from retaliation or persecution.

Managing Exposure to Corruption and Corporate Crime

  • What can be Done? Companies operating in Argentina must take steps to manage their exposure to corruption and corporate crime. This includes establishing internal controls and procedures, conducting due diligence on business partners, and reporting suspicious transactions.
  • What’s Happening in Argentina? Argentina has implemented several reforms aimed at strengthening its financial system and combating financial crimes. The country is also experiencing trends and developments related to financial technology (fintech) and cryptocurrency, which may pose new challenges for regulators and businesses alike.