Financial Crime World

Uruguay’s New Money Laundering Law: A Game Changer for Financial Compliance

The Uruguayan Parliament passed a new money laundering law, Law No. 19,574, which took effect on 10 January 2018, marking a significant milestone in the prevention of money laundering and terrorism financing in Uruguay.

Objectives and Impact of the New Law

This legislation consolidates all rules and information concerning Anti-Money Laundering (AML) and terrorism financing into one document. The objectives of the AML and Financing of Terrorism Commission (FTC), under the supervision of the Government, include:

  • Collaborating with the AML unit of the Central Bank of Uruguay
  • Strengthening the country’s financial regulatory framework

The new law impacts any person or company regulated by the Central Bank of Uruguay (CBU). The obligated parties fall into two categories:

Financial Fellows

Financial fellows are already regulated by the CBU and include:

  • Banks
  • Trustees
  • Money exchange companies
  • Stock exchanges
  • Pension funds
  • Investment fund administrators
  • Investment advisors

Non-Financial Fellows

The new legislation obligates the following non-financial parties:

  • Lawyers acting on behalf of their clients
  • Free zone companies
  • Political parties
  • Foundations
  • Any non-profit organization
  • Public accountants acting as independent advisors
  • Trusts
  • Corporate services providers
  • Public notaries

Any non-professional trustee in Uruguay could act as a trustee for private trusts that are not regulated by the CBU. However, they must now comply with AML policies.

Consequences of Non-Compliance

Failure to adhere to the new regulations may result in severe consequences, including:

  • Warnings
  • Heavy fines
  • Revocation of specific licenses for non-reporting of client information

Expert Guidance

TMF Group, including TMF Uruguay, can offer its expertise to help lawyers, non-financial clients, and their businesses navigate the complexities of this new legislation. As a financial trust regulated by the Central Bank of Uruguay, TMF Uruguay has extensive experience in AML law compliance.

Seeking Professional Advice

This article is intended as a general overview of the subject matter. For advice tailored to your specific situation, consult a financial compliance professional.