Financial Crime World

Argentina Takes Significant Steps to Combat Financing of Terrorism

A Major Effort to Prevent and Deter Money Laundering and Terrorist Financing

In a significant move to combat the financing of terrorism, Argentina has enacted legislation and regulations aimed at preventing and deterring money laundering and terrorist financing. The country’s Central Bank (BCRA) has played a key role in implementing anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

New Legislation

In March 2005, Argentina approved the United Nations International Convention on Combating the Financing of Terrorism. In June 2007, the Argentine Congress passed legislation criminalizing terrorism and terrorist financing, making it a predicate offense for money laundering.

  • Introduced the crime of terrorism and punished individuals who collect or provide property or money to finance a terrorist organization.
  • Imposed prison sentences of 5-20 years for those convicted of terrorism and 5-15 years for those convicted of financing terrorism.

AML/CFT Regulations

The BCRA has implemented regulations requiring financial entities to adhere to strict AML/CFT standards. These measures include:

  • Customer Identification and Record Keeping: Financial entities must identify and record customer information.
  • Reporting Suspicious Transactions: Entities must report suspicious transactions directly to the Financial Information Unit (UIF).
  • Internal Policies and Procedures: Entities must develop internal policies and procedures to ensure compliance with AML/CFT regulations.
  • System of Internal Controls: Entities must establish a system of internal controls to ensure compliance.
  • Designated Senior-Level Individual: Each entity must designate a senior-level individual responsible for ensuring compliance.
  • Independent Testing: Entities must undergo independent testing to assess their compliance.
  • Training: Personnel must receive training on AML/CFT regulations and procedures.
  • Identifying High-Risk Accounts: Entities must develop methods for identifying high-risk accounts.
  • Establishing Expected Activity Levels: Entities must establish processes for establishing expected activity levels.

National Anti-Money Laundering and Counter-Terrorism Finance Agenda

In September 2007, the Argentine Government enacted a National Anti-Money Laundering and Counter-Terrorism Finance Agenda (National Agenda) to serve as a roadmap for implementing AML/CFT laws and regulations. The agenda provides a structure for the government to improve existing legislation and regulation, and enhance inter-agency coordination.

Audit Program

The BCRA has recently launched an audit program to assess the financial sector’s compliance with AML/CFT regulations. Over a three-year period, each financial entity will be audited by a special unit created within the Superintendence of Financial Entities. The unit has been trained on international standards by international experts.

Conclusion

Argentina’s efforts to combat the financing of terrorism demonstrate its commitment to preventing and deterring money laundering and terrorist financing. The country’s AML/CFT regulations are now aligned with international standards, making it easier for financial institutions to operate in a secure and compliant environment. By implementing these measures, Argentina is contributing to the global effort to combat crime and terrorism.