Financial Crime World

Terrorist Financing: Argentina’s 48-Hour Window for Operation

Combating the Menace of Terrorist Financing

Argentina has taken a significant step towards combating the menace of terrorist financing by implementing a strict 48-hour window for any operation carried out or attempted, including non-working days and hours. This move aims to prevent the flow of funds from illegal activities into the financial system.

Recent Developments

  • Argentina is proposing new laws to include cryptocurrency businesses under AML Laws, expected to take effect in 2022.
  • The country has been strengthening its anti-money laundering regulations by granting a higher level of independence to its Financial Information Unit (UIF) and widening the scope of regulated businesses.

Fighting Terrorist Financing

To combat terrorist financing, businesses operating in Argentina must ensure they comply with all relevant and incoming regulations. This includes:

AML Compliance: What You Need to Know

Anti-Money Laundering (AML) is a set of measures aimed at preventing illicit activities such as presenting illegal funds into legitimate transactions.

  • To comply with AML regulations, businesses must avoid knowingly assisting criminal activities and report suspicions of money laundering activity.
  • All regulated companies subject to AML regulations must ensure that all AML-related policies and controls operate properly.

FAQs

  • What is AML compliance?: AML is a set of measures to prevent the reintroduction of illegal funds into the financial system.
  • Who is required to have an AML policy?: All regulated companies subject to AML regulations must ensure that all AML-related policies and controls operate properly.
  • What is the condition of money laundering in Argentina?: Argentina has made significant progress in developing its AML regulations, with a risk score dropping from 6.74 in 2016 to 5.03 in 2021.

The Law

Law 25.246 (AML Law) was enacted in April 2000 and provides for the creation of the Financial Information Unit (UIF), amendment of the Penal Code, and establishment of a stricter regulatory framework for the financial sector.

Obligated Subjects

The following businesses are required to comply with Argentine AML regulations:

  • Financial institutions
  • Exchange offices
  • Natural and legal persons engaged in games of chance (e.g. casinos)
  • Stockbrokers and stock brokerage firms
  • Intermediaries registered with futures and options markets
  • Insurance companies

Conclusion

Argentina’s 48-hour window for terrorist financing operations is a significant step towards preventing the flow of illegal funds into the financial system. Businesses operating in Argentina must ensure they comply with all relevant regulations to avoid penalties and fines.