Improving Argentina’s Beneficial Ownership Resolution Process

Enhancing Transparency and Accountability

Argentina’s beneficial ownership resolution process can be improved by implementing several key measures. This draft report highlights areas for improvement, including verification of beneficial ownership information, cross-checking data with financial institutions, and establishing guidelines for the private sector.

Verification of Beneficial Ownership Information

• Establish mechanisms to verify the accuracy and veracity of registered beneficial ownership information.
• Ensure that the verification process is transparent and accountable.

Cross-Checking Data with Financial Institutions

• AFIP (Argentine tax administration) should cross-check beneficial ownership information submitted by entities directly with the information reported by local financial institutions as part of automatic exchange of bank account information.
• This will help to ensure that the beneficial ownership information is accurate and up-to-date.

Establishing Guidelines and Training for the Private Sector

• Publish guidance and organize trainings for the private sector to provide clarity on the new beneficial ownership regulation.
• Ensure that the guidelines are clear, concise, and easy to understand.

Key Recommendations

1. Publish Guidance and Organize Trainings: Provide clear guidance and organize trainings for the private sector to ensure they understand the new beneficial ownership regulation.
2. Establish Beneficial Ownership Registration Requirements for Trusts: Ensure that trusts are required to register their beneficial owners, just like other entities.
3. Sign Memoranda of Understanding with Local Authorities: Sign memoranda of understanding with other local authorities to access beneficial ownership information and ensure cooperation between agencies.
4. Publish Basic Beneficial Ownership Information: Publish at least basic beneficial ownership information through Argentina’s National Register of Companies to increase transparency.
5. Verify Beneficial Ownership Information: Verify the beneficial ownership information obtained pursuant to the new regulation to ensure its accuracy.

Potential Impact

Implementing these recommendations could enhance transparency and accountability in Argentina’s beneficial ownership resolution process, ultimately contributing to a more stable financial environment. By improving the verification of beneficial ownership information, cross-checking data with financial institutions, and establishing guidelines for the private sector, Argentina can take significant steps towards reducing money laundering and terrorist financing risks.