Financial Crime World

Uruguay Takes a Strong Stance Against Money Laundering

A Robust Framework Against Financial Crimes

Uruguay has made significant strides in combating money laundering and financing terrorism, with a robust regulatory framework and strict reporting obligations in place. The country’s financial institutions and non-financial entities are subject to stringent anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

Key Players in AML Prevention

Several key organisations play a crucial role in supervising the financial industry and creating AML/CFT regulations:

  • Central Bank of Uruguay (BCU): The BCU is responsible for gathering, classifying, analysing, and distributing information to law enforcement agencies and international financial intelligence units.
  • Coordinating Commission against Money Laundering and Terrorism Financing: This commission organises AML efforts and tackles terrorist funding, reporting to the Republic’s Presidency Office.
  • National Secretariat for Combating the Money Laundering and Financing of Terrorism (SENACLAFT): SENACLAFT exercises technical autonomy and is responsible for developing policies and national strategies to combat money laundering and terrorism financing.
  • Unit of Financial Information and Analysis (UIAF): The UIAF was created by the Board of Directors of the Central Bank of Uruguay.

Strict Reporting Obligations

Law 19,574 requires financial institutions and non-financial entities to submit different reports. Notable reporting obligations include:

  • Obliged financial subjects: These entities must report transactions that are unusual, lack economic justification, or arise with an unusual or unjustified complexity.
  • Financial institutions: They must establish effective customer due diligence systems and monitoring programs, screen against Office of Foreign Assets Control (OFAC) and other government lists, and have Customer Due Diligence (CDD) Programs.

A Strong Foundation Against Financial Crimes

Uruguay’s robust AML/CFT regulations and strict reporting obligations demonstrate the country’s commitment to preventing money laundering and financing terrorism. The regulatory framework provides a strong foundation for financial institutions and non-financial entities to adhere to international standards and protect against illicit activities.