On 1 February, the Financial Information Unit (“UIF”) published in the Official Gazette Resolution 14/2023 (the “Resolution”) that establishes amendments to the current regulatory framework for financial and exchange entities to manage and mitigate Money Laundering and Terrorist Financing (“ML/FT”) risks. The amendments arise as an adaptation to the standards of the Financial Action Task Force (“FATF”).
As of 1 April, the date of entry into force of the resolution, obligated entities must implement a ML/TF Prevention System, with a risk-based approach.
The Resolution establishes that it will be mandatory to prepare a technical risk self-assessment report which must be updated annually and sent to both the UIF and the Central Bank of the Argentine Republic (“BCRA”) before 30 April of each calendar year. In addition, entities shall send a Risk Tolerance Statement identifying the ML/TF risk margin that the management body or highest authority of the entity is willing to assume according to its actual management and mitigation capacity.
Another of the modifications of the Resolution refers to the concrete adoption of risk mitigation procedures, being required, in all cases, the designation of a Compliance Officer and a Deputy Compliance Officer before the UIF, the preparation of a Code of Conduct and the evaluation of the effectiveness of its Prevention System through internal and external independent audit systems, in addition to establishing training plans for staff, due diligence rules and registration of unusual operations. The policies implemented must be contained in a ML/FT prevention manual developed by the regulated entity.
The designation of a ML/FT Prevention Committee will be mandatory, reinforcing the participation of top level officials in issues related to the entity’s compliance.
Between the 1st and 15th of each month, the Compliance Officer shall make systematic reports through the UIF website, including a High Value Cash Transaction Report, a Foreign Exchange Cash Transaction Report and an International Transfers Report.
Failure to comply with the obligations and duties established in the Resolution shall be subject to the penalties provided for in the administrative criminal regime according to Law 25.246.