Financial Crime World

Types of Financial Fraud in Argentina: A Guide

As concerns about financial crime continue to mount worldwide, it’s essential for businesses and individuals operating in Argentina to stay informed about the various types of fraud that can occur. From corporate fraud to money laundering, understanding these crimes can help prevent losses and reputational damage.

Common Types of Financial Fraud in Argentina

  • Corporate fraud: fraudulent activities committed by companies or individuals for personal gain
  • Bribery and corruption: illegal payments or favors given to influence decisions or actions
  • Insider dealing and market abuse: trading based on non-public information or manipulating markets
  • Money laundering: concealing the source of illegally obtained funds
  • Terrorist financing: providing financial support to terrorist organizations
  • Breaches of financial/ trade sanctions: violating economic sanctions imposed by governments
  • Breaches of financial record keeping: failure to maintain accurate and transparent financial records

Regulation of Financial Crime in Argentina

The regulatory authorities responsible for investigating and enforcing financial crimes in Argentina include:

  • National Securities Commission (CNV): regulates the securities market and investigates financial crimes related to securities
  • Federal Public Prosecutor’s Office: prosecutes criminal cases, including financial fraud
  • Anti-Corruption Office: investigates corruption and bribery cases
  • Financial Information Unit: collects and analyzes financial data to detect suspicious activity

These bodies have the power to conduct investigations, gather evidence, and impose penalties on those found guilty of financial fraud.

Safeguards Against Financial Fraud

To reduce their exposure to financial fraud, businesses operating in Argentina can:

  • Implement robust internal controls: establish policies and procedures to prevent fraudulent activity
  • Conduct thorough due diligence: investigate partners and suppliers before doing business with them
  • Establish corporate liability: hold employees accountable for their actions
  • Be aware of the risks associated with cartels and immunity/leniency agreements

Reporting Suspected Financial Fraud

Whistleblowers can report suspected financial fraud to:

  • Regulatory authorities (e.g. CNV, Federal Public Prosecutor’s Office)
  • Law enforcement agencies (e.g. police, prosecutor’s office)
  • In some cases, reporting fraud anonymously may be possible

The Argentine government has been implementing reforms aimed at strengthening its:

  • Anti-money laundering and counter-terrorism financing regime: to prevent the misuse of financial systems
  • Efforts to combat corruption and bribery: including the establishment of new anti-corruption agencies

By understanding these types of financial fraud and staying informed about regulatory changes and best practices, businesses and individuals operating in Argentina can better protect themselves against financial crime and maintain a strong reputation.