Editor’s Note
This article outlines new compliance requirements issued by Argentina’s Financial Information Unit (UIF) on March 26, 2024. The updated resolutions replace the previous 2011 framework, introducing revised guidelines for managing money laundering and terrorist financing risks in sectors involving art, antiques, collectibles, and luxury goods. Entities operating in these areas should review the new regulations to ensure adherence.
On March 26, 2024, the Financial Information Unit (UIF) issued Resolutions 54/2024 and 55/2024. These Resolutions replace Resolution 28/2011 and update the current regulatory framework for the prevention of money laundering and terrorist financing (ML/TF) applicable to individuals or legal entities engaged in the purchase and sale of works of art, antiques, philatelic or numismatic investments, as well as the purchase and sale of luxury goods or the export, import, manufacturing, or industrialization of jewelry or goods containing precious metals or stones. The objective is to establish or adapt the obligations they must comply with to manage and mitigate ML/TF risks, in accordance with current international standards, best practices, guidelines, and recommendations issued by the Financial Action Task Force (FATF).
For this purpose, obligated subjects (OS) will be considered as natural and/or legal persons, or other structures with or without legal personality, that are engaged in the purchase and sale of works of art, antiques, philatelic or numismatic investments, and/or the purchase and sale of luxury goods or the export, import, manufacturing, or industrialization of jewelry or goods containing precious metals or stones.
It is worth mentioning that the above definition encompasses the entire production chain: from the extraction process to the sale of the final product. Therefore, it includes the mining sector, intermediate buyers and brokers, gemstone cutters and polishers, precious metal refiners, jewelry manufacturers and artisans, retail sellers, and the secondary market such as production remnants, among others.
Furthermore, the following modifications were incorporated:
1. A Technical Risk Self-Assessment Report must be prepared, considering at a minimum the following risk factors: clients, services, distribution channels, and geographic area; as well as information provided by the UIF or other competent authorities regarding ML/TF risks and all situations that impact them.
This report must be self-sufficient and updated every two years. Additionally, it must be submitted to the UIF before April 30 of the calendar year corresponding to its submission.
2. The obligation to carry out an independent external review every two years is incorporated, when their operations exceed 180 Minimum, Living, and Mobile Wages (SMVM) over the course of a year.
The report issued within the framework of this review must be submitted to the UIF within 120 calendar days from the deadline for submitting the Technical Report.
3. A duly justified risk tolerance statement approved by the governing body or highest authority must be made.
This must be sent to the UIF, once approved, together with the technical self-assessment report and the methodology, before April 30 of the year in which it is due.
4. An Annual Systematic Report must be submitted containing general information (name, address, and activity), accounting, corporate, types and quantity of clients, among others.
5. The obligation to segment clients according to the risk assigned to each of them is incorporated, and the due diligence measures to be applied are distinguished according to the rating performed.
6. Continuous due diligence must be carried out for regular clients and their files updated according to the assigned risk level. In this regard, “regular clients” are understood as those who carry out more than one transaction within a one-year period.
7. It is established which data must be included in the Unusual Operations Register and in the Suspicious Operations Reports.
8. An automatic update mechanism is incorporated, which uses the SMVM as a reference parameter.
The new regulations have been in force since March 26, 2024, so UIF Resolution 28/2011 has already been repealed.
However, certain obligations will be required:
1. the first self-assessment report, together with the applied methodology and the risk tolerance statement, must be submitted before April 30, 2026;
2. the first report of the independent external reviewer -if applicable- must be submitted before August 31, 2026;
3. the first Annual Systematic Report must be submitted between January 2 and March 15, 2025.