Argentina Passing New Bills Against Money Laundering

May 13, 2011 Taxation in Argentina

Money launderingArgentina is looking set to make significant headway in the international fight against money laundering and terrorist financing, with its Chapter of Deputies having passed a new bill to update the country’s laws against such offences.

In only weeks ahead of an international review of the country’s financial crime regulations,
Argentina’s Chamber of Deputies, the lower house of National Congress, has passed a bill to strengthen the country’s anti-money laundering and terrorist financing prevention legislations. The Bill has been actively backed by President Cristina Fernandez, and was passed with 181 votes in favor and with only 7 abstentions. In order to be instated into law, the Bill is now required to be passed by the Senate. The Bill is scheduled to be voted on by the end of May.

In late 2010 Argentina underwent an international peer review by the Financial Action Task Force, an
intergovernmental body developing international policies to combat money laundering. The review
found that the country was only partially compliant, or even non-compliant, with 46 of the Task
Force’s 49 primary goals and recommendations. The FATF identified 962 specific shortcomings in
Argentina’s anti-money laundering and terrorist financing policies, and issued appropriate remedy
recommendations. The government of Argentina was recommended to adequately address its policy
shortcomings by June 2011 to, or face being labelled as a high-risk or non-cooperative jurisdiction.

Since the December 2011 Argentina has been actively working to meet the requirements and
recommendations. Alongside the newly passed bill, the country’s financial crime agency Financial
Information Unit of Argentina (UIF), has also instated 22 new national regulations to address
shortcomings highlighted by the report.

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