Editor’s Note
This article outlines new government measures to strengthen anti-money laundering oversight through on-site inspections. The initiative aims to ensure stricter compliance across sectors.
The Government announced yesterday that it will intensify controls to prevent money laundering with a new system that will allow agents of the Financial Information Unit (UIF) to supervise operations through inspections at the companies or organizations themselves. The move aims to check that firms and individuals in various sectors effectively comply with established procedures to prevent money laundering from illicit activities.
In case irregularities are found, the regulation stipulates fines ranging from one to ten times the value of the assets or operation in question. Argentine legislation considers “suspicious operations” all unusual transactions, without economic or legal justification, or “unreasonably complex.” Banks, public accountants, and notaries are obligated to report all these operations to the UIF for analysis.
From the agency headed by José Sbattella, it was clarified that the new resolution aims to reinforce the prevention of money laundering, not the act itself (which is already punishable). What is attempted to be verified is whether the procedures to avoid these maneuvers are effectively being complied with.
In the sights of the UIF are those who exploit games of chance (mostly casinos); stockbrokers and stock exchange companies; public registries of commerce, real estate, and motor vehicles; those dedicated to buying and selling works of art, antiques, luxury goods, and jewelry; credit card operators; cash transporters; and insurance producers, among other activities.
The UIF is empowered to request data and documentation from any public agency, require collaboration from state information services, and establish control systems for obligated subjects.
In justifying its resolution, Sbattella argued that, for the exercise of the “police power” held by the UIF, “it is necessary to establish a supervision procedure” for compliance with anti-money laundering regulations, in order to evaluate the effectiveness of the system.
The Government is attempting with this to adapt to the standards issued by the Financial Action Task Force (FATF). This body, last May, issued a report questioning the procedures in Argentina to combat money laundering. The document is based on a visit that experts made to Argentina in 2009 and warns about the country’s non-compliance with recommendations from the international body.
If Argentina does not begin to comply with the guidelines established by the FATF, in October this body could choose to put the country on the “grey list,” at a level similar to other nations like Paraguay and Bolivia today.
The FATF is an intergovernmental body that seeks to promote and develop local and global policies to combat money laundering and terrorist financing.
Another measure that the UIF is studying to issue is penalizing the figure of “self-laundering,” which until now has no punishments in Argentina. This regulation is expected to be released before the end of the year.
