Companies operating in Argentina should check to see if they meet the definition of an “obliged person” that must meet the country’s existing and new anti-money laundering rules.
Argentina’s new guidelines and recommendations for anti-money laundering, which took effect on March 26, extended the description of criminal activity in the criminal code, and appointed new persons and activities as obliged persons—including lawyers and legal advisers. Their inclusion allegedly is limited to the activities in which they perform certain transactions in the name and on behalf of their client—mainly assets transactions, administration of assets, and incorporation of entities.
The Unidad de Información Financiera task force, or UIF, defines the reporting requirements of an obliged person, and its resolutions establish procedures they must follow. In general, they should register with the UIF, appoint a compliance officer, have an internal anti-money laundering, or AML, manual, establish a know-your-client procedure by elaborating a risk profile for each client, and file reports for unusual or suspected transactions.
The law expressly states that lawyers don’t have to report information obtained under attorney-client privilege. However, it’s possible to identify blurred limits on figures in transactions. As a result, it would be prudent to have a confidentiality agreement between lawyers and clients even if the information is protected by the legal attorney-client privilege.
Argentina’s AML system has an increasing burden of compliance, analysis, and reporting obligations to obliged persons, and treats the UIF as a data center that receives, records, and analyzes submitted information.
The new spectrum of obliged persons also includes non-financial credit providers, central depository agents for negotiable securities, corporate service providers, domiciliation services providers, and trustees. There also is a new registry of virtual assets service providers to reach crypto wallets and exchanges and a centralized register of ultimate beneficiary owners.
Regarding the corporate service providers, domiciliation services providers, and trustees service providers, the obligation applies to all individuals or entities that incorporate entities; act as managers or directors; provide legal, fiscal, or physical domicile; and act as trustees of non-financial trusts.
The corporate service providers must create a risk profile of all their clients and report to the UIF any unusual or suspected transaction. For example, a capital injection to an Argentine subsidiary might be considered unusual or suspected depending on the amount or country of origin.
According to the bar association of the city of Buenos Aires, the courts are reviewing the constitutionality of the new AML rules with respect to lawyers. In 2008, a similar petition of unconstitutionality was requested when notaries public were included as obliged persons, but the Supreme Court of Argentina in 2018 found it constitutional.
The specific regulations under the new anti-money laundering rules were issued to identify and elaborate a risk profile for all clients of obliged persons. In this sense, use of shell companies, vehicles, and other similar structures are considered risk-generating activities.
The new regulations also require obliged persons to file a risk self-assessment technical report to the UIF every year. This report should be evaluated by an independent party.
Alongside the risk profile of clients, obliged persons should ensure clients aren’t politically exposed or included in any UIF or Financial Action Task Force registry, perform periodical due diligence on clients, and monitor clients’ transactions. Obliged persons should record unusual transactions and report any suspected transaction within 24 hours of the reportable transaction.
In addition, obliged persons should submit a specific activities monthly report—detailing all transactions performed for or by the clients—and a systematic annual report with a broader description of the transactions. These should be filed before March 15, 2025.
The first risk self-assessment technical report should be filed to the UIF before April 30, 2026, for years 2024 and 2025, and the first independent party monitoring procedure should be filed before Aug. 31, 2026, also concerning years 2024 and 2025.
All information documents and data collected by obliged persons should be kept in custody for a 10-year term and be made available to the UIF upon request.
Under the new AML rules, the Argentine federal tax authority is free to share information with the UIF without violating fiscal secrecy rules and will manage a new centralized register of ultimate beneficiary owners, with information to be obtained through further reporting methods.
Directly or indirectly, AML regulations affect anyone with presence in Argentina. Learn the regulations and obligations to follow and safely operate within the AML provisions.
This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.
Author Information
Augusto Nicolás Mancinelli is head of DLA Piper’s tax and customs department.
Marcelo Etchebarne is managing partner of DLA Piper Argentina.
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