On February 8th, 2012 General Resolution No. 602/2012 of the National Securities Commission (“NSC”) was published in the Official Gazette. This Resolution amends Chapter XXII of the Rules of the NSC (“NSC Rules”) in connection with the prevention of money laundering and the financing of terrorism.
Chapter XXII of the NSC Rules, which after the amendment is called “Supplementary Rules on the Prevention of Money Laundering and Financing of Terrorism”, provides that agents of brokerage; corporate managers of mutual funds; agents of open electronic markets; intermediaries in the purchase, rental or lending of securities operating under the scope of stock exchanges; brokers registered in futures and options markets; and persons associated with trust accounts shall comply with the provisions of the NSC Rules, the standards established by the Financial Information Unit (“FIU”), and the NSC.
Additionally, the Resolution provides that its regulations must be complied by the depositary of mutual funds, natural or legal persons involved as placement agents of all primary issuance of securities, issuer companies in respect of capital contributions, irrevocable contributions on future issues of shares, or significant loans received.
In connection with the measures for the control on the receipt and disbursement of funds by customers, the subjects mentioned above may only receive cash per costumer per day in an amount which shall not exceed one thousand pesos (AR$1,000). If the funds received, per customer per day, exceed that amount the delivery by the costumer shall meet one of the following options:
(i) Bank transfers, that must be made from bank sight accounts of the ownership or joint ownership of the client in entities in Argentina authorized by the Argentine Central Bank (“ACB”).
(ii) Checks or checks for settling debts, which must be drawn on accounts in financial entities in Argentina of the ownership or joint ownership of the client.
(iii) Credit, debit, or purchase card.
(iv) Invoice credit.
(v) Other procedures expressly authorized by the Executive Power.
Moreover, these individuals cannot make per client and per day, more than 2 payments of funds nor issue more than 2 checks. Cash and per clients payments exceeding two thousand pesos (AR$2,000) shall be made by any of the options previously mentioned.
Also, these individuals will only be able to perform operations of public offering of securities, fixed-term contracts, future contracts or options of any kind, or other financial instruments, when they are made of ordered by individuals domiciled or that reside in domains, jurisdictions, territories or States that are not listed in the Decree No. 1037/00, that is to say, tax heavens.
When they are not included in that listing and they are intermediaries in their original jurisdiction registered in self-regulatory entities under the control and supervision of a body which meets similar functions as those of the NSC, the individuals shall only perform the operations when they accredit that the organism of the original jurisdiction has signed a memorandum of understanding of cooperation and exchange of information with the NSC.
The Resolution came into force on February 16th, 2012.
