International Referral the global network of business lawyers, is delighted to publish another article from one of our law firm members. To find a lawyer or receive further information; please contact [email protected]
From January 14, 2011 until January 24, 2011 the Financial Information Unit (“FIU”) has published in the Official Gazette of Argentina a total of thirteen (13) Resolutions. These are Resolutions No. 194/2010, No. 11/2011, No.12/2011, No. 18/2011, No. 19/2011, No. 20/2011, No. 21/2011, No. 22 / 2011, No.23/2011, No. 24/2011, No. 25/2011, No. 26/2011 and No. 27/2011.
This is an effort of Argentina to avoid sanctions from the Financial Action Task Force (“FATF”) after a critical report in October 2010 issued by such entity.
The set of rules deals with issues ranging from the treatment given to the information received by anti-money laundering agencies of other countries -which had already earned criticism from his US counterpart, the FINCEN-, to a list of politically exposed persons (PEP), provisions for the Central Bank, National Securities Commission, Gambling Houses, Notaries, etc.
The goal set by the rules is to set into force a system of measures to prevent money laundering and implement greater control over commercial and financial operations. Thus, there will be more controls on the purchase of property, vehicles, insurance contracts, bank transfers, and bets in bingos and casinos that exceed certain amounts.
In December 2010, Argentina submitted before the FATF a plan to prevent money laundering. In relation with this plan, the FATF considered that Argentina should change its plan of action and that the country lacks adequate anti-money laundering control standards.
Consequently, the origin of these new measures is the need to comply with the strong criticisms leveled against the Government by the FATF and avoid warnings and sanctions. The main measures implemented by the Government are as follows.
Notaries, accountants, Banks, insurers and transportation companies must implement procedures for the control of operations in which they intervene, which exceed the sum of two hundred thousand pesos ($ 200,000).
Moreover, Banks must report transfers that denote unusual movement of funds of their customers. Accounting firms and transportation of funds companies must report any suspicious transaction.
Additionally, all organisms and professionals previously mentioned must have a manual of procedure to avoid transactions involving money laundering, carry files of each of their customers, and report unusual transactions and those in which their customers can not justify the origin of funds.
The Argentine Central Bank (“ACB”) must exercise tighter controls on financial entities while sanctioning powers are under the responsibility of the UFI.
Furthermore, the FIU decided that the Department of Property of Vehicles must monitor purchases. Thus, in case of a purchase of vehicles that exceeds two hundred thousand pesos (AR$200,000 – approximately US$ 50,000) the purchaser must fulfill an affidavit stating the legal origin of the funds and provide documentation to support his statement, either through bank records or deeds from the sale of real estate, vehicles, cereals or livestock.
Gambling is one of the most difficult areas to control, especially because of its extension. According to a survey of the UFI there are in the country 61 bingos, 67 casinos, 115 horse agencies and 89 locals with slot machines. Since the new measures implementation, all bingo and casinos must implement more stringent control mechanisms.
Additionally, the Government decided to increase the control on Politically Exposed Persons (PEP). This group is composed of presidents, ministers, public, officials, presidents of political parties, legislators, judges, military officers, prosecutors, union leaders and heads of chambers of commerce.
The new plan of action against money laundering stated by the Government will be reviewed by the GFA in the next plenary session to be held between February 21 and 25.
