WHAT ARE THE
Money laundering and terrorism financing laws in Argentina?
In Argentina, money laundering and terrorism financing are serious offences and are governed by the following laws and regulations:
- Anti-Money Laundering Law (Law No. 25,246): This law establishes measures to prevent and detect money laundering activities. It requires financial institutions to implement customer due diligence procedures, report suspicious transactions to the Financial Information Unit (FIU), and maintain records of transactions.
- Counterterrorism Law (Law No. 26,734): This law criminalises terrorism financing and provides measures to prevent and combat terrorism-related activities, including provisions for the freezing and seizing assets linked to terrorism financing.
In addition there are a number of organisations that support and oversee compliance with these laws:
- Financial Information Unit (FIU): The FIU is the government agency responsible for receiving, analysing, and disseminating reports on suspicious transactions related to money laundering and terrorism financing, working closely with financial institutions and law enforcement agencies to investigate and combat these illicit activities.
- FATF/GAFILAT: Argentina participates in international efforts to combat money laundering and terrorism financing through cooperation with organisations such as the Financial Action Task Force (FATF) and regional bodies like the Financial Action Task Force of Latin America (GAFILAT).
- Supervision and Enforcement: Regulatory agencies, such as the Central Bank of Argentina and the National Securities Commission, oversee compliance with anti-money laundering and counterterrorism financing regulations, by conducting inspections and imposing sanctions on entities that fail to comply with these requirements.
WHAT ARE THE
Key obligations reporting entities have under Argentinean laws?
The key obligations under the AML/CTF laws in Argentina include:
- Customer Due Diligence (CDD): Reporting entities are required to conduct customer due diligence procedures to verify the identity of their customers and assess the risk associated with their business relationships. This involves collecting information such as the customer's name, address, and identification documents.
- Prohibition on Dealing with Certain Individuals or Entities: Reporting entities may be prohibited from conducting transactions with individuals or entities that are subject to sanctions or are identified as involved in money laundering or terrorism financing activities.
- Enhanced Customer Due Diligence (ECDD): In cases where there is a higher risk of money laundering or terrorism financing, reporting entities must apply enhanced customer due diligence measures. This may include obtaining additional information about the customer, the nature of the business relationship, the source of funds and the source of wealth.
- Employee Training: Regular training must be provided to employees, ensuring they are knowledgeable about AML/CTF laws and regulations, including how to identify and report suspicious activities. Ongoing awareness programs should also be in place to keep staff informed of evolving risks and responsibilities related to money laundering and terrorism financing.
- Suspicious Transaction Reporting (STRs): Reporting entities are obligated to report suspicious transactions to the Financial Information Unit (FIU), that appear unusual or inconsistent with the customer's known profile or business activities. Reports must be submitted promptly, and entities may be required to provide additional information.
- Record-Keeping: Reporting entities must maintain records of customer identification, transactions, and due diligence measures for a specified period.
- Internal Controls and Compliance Programs: Reporting entities are expected to establish and maintain internal controls and compliance programs to ensure adherence to anti-money laundering and counterterrorism financing regulations, including policies, procedures, and training programs for employees to detect and prevent illicit activities.
These obligations are designed to prevent and detect money laundering and terrorism financing activities and ensure that reporting entities play a proactive role in combating financial crimes. Failure to comply with these obligations can result in penalties, including fines, sanctions, or revocation of operating licences.
WHO ARE THE
ML/TF regulators in Argentina and what functions do they perform?
In Argentina, the regulators responsible for overseeing and enforcing anti-money laundering (AML) and counterterrorism financing (CTF) measures are primarily:
- Financial Information Unit (FIU): The FIU, or Unidad de Información Financiera, is the primary government agency responsible for receiving, analysing, and disseminating reports on suspicious transactions related to money laundering and terrorism financing.
- Central Bank of Argentina (BCRA): The Central Bank, or Banco Central de la República Argentina, plays a significant role in regulating and supervising financial institutions operating in Argentina. It oversees compliance with anti-money laundering and counterterrorism financing regulations within the banking sector.
- Superintendency of Insurance of the Nation (SSN): The SSN, or Superintendencia de Seguros de la Nación, regulates and supervises insurance companies and intermediaries in Argentina. It ensures compliance with anti-money laundering and counterterrorism financing requirements within the insurance industry.
- National Securities Commission (CNV): The CNV, or Comisión Nacional de Valores, regulates and supervises securities markets and participants, including stock exchanges, brokerage firms, and investment advisors.
- Superintendency of Corporations (IGJ): The IGJ, or Inspección General de Justicia, oversees the registration and supervision of corporations and other legal entities in Argentina.
- Ministry of Justice and Human Rights: The Ministry of Justice and Human Rights provides policy direction and coordination for anti-money laundering and counterterrorism financing efforts in Argentina.
These regulators and agencies collaborate closely to enforce anti-money laundering and counterterrorism financing laws, conduct investigations, and implement measures to combat financial crimes effectively. They also engage in international cooperation efforts with other countries and organisations to address cross-border money laundering and terrorism financing activities.
WHAT ARE THE
Industry sectors subject to ML/TF regulations?
The regulated industry sectors in Argentina subject to AML and CTF regulations include, but are not limited to:
Designated Non-Financial Businesses and Professions (DNFBPs)
Including lawyers, accountants, real estate agents, trust and company service providers, dealers in precious metals or stones, and other professionals or businesses engaged in high-value transactions.
WHAT ARE THE
Penalties for non-compliance with AML/CTF laws?
The penalties for non-compliance with money laundering and terrorism financing laws in Argentina can include the following:
- Administrative Sanctions: Regulatory authorities, such as the Financial Information Unit (FIU), the Central Bank of Argentina, and other relevant supervisory bodies, have the authority to impose administrative sanctions on entities found to be in violation of AML/CTF regulations. These sanctions may include fines, warnings, temporary suspensions of operations, or revocation of operating licences.
- Criminal Penalties: Serious violations of AML/CTF laws may lead to criminal prosecution. Individuals or entities engaged in money laundering, terrorism financing, or related offences may face criminal charges, which can result in imprisonment, substantial fines, asset freezing or seizing or any combination of these. Criminal penalties may vary depending on the severity of the offence and applicable laws.
- Civil Penalties: In addition to administrative and criminal sanctions, non-compliance with AML/CTF laws may expose individuals and entities to civil penalties. This could involve legal action brought by regulatory authorities or affected parties seeking damages for harm caused by the violation of AML/CTF regulations.