Argentine Financial Information Unit: External Independent Reviewers

The Financial Information Unit (“UIF”) issued Resolution No. 67-E/2017 (the “Resolution”), with the aim of regulating the activity of individuals who act as external independent reviewers within the framework of UIF Resolution No. 30-E/2017, or any other as may correspond in the future.

The Resolution created the “Registry of External Independent Reviewers in matters of Anti-Money Laundering and Terrorism Financing (“AML/TF”) (the “Registry of External Reviewers”).

Furthermore, the Resolution established the requirements that individuals who wish to act as external independent reviewers must comply with, of which the following are worth mentioning: (i) a university degree; (ii) an appropriate academic background in AML/TF; and, (iii) a minimum of five (5) years’ experience in AML/TF, either in the public or private sector. Likewise, the Resolution provides for a series of incompatibilities (such as economical and professional grounds, as well as kinship with shareholders and members of the Obliged Subjects’ governing bodies) which will bar certain individuals from acting as external independent reviewers. Individuals who wish to act in such capacity will be required to file a sworn affidavit before the UIF in that regard.

The tasks to be carried out by external independent reviewers under the Resolution include the following: (i) the evaluation of risk management systems in place; (ii) the revision of corporate governance and other internal regulations regarding an effective AML/TF system; (iii) the evaluation of Know-Your-Client policies in place; (iv) the evaluation of AML/TF monitoring and reporting systems in place; (v) the evaluation of the conservation of documents and compliance with regulatory requirements in place; (vi) the evaluation of the training plans in place; and, (vii) the evaluation of verification and internal audit activities in place as regards AML/TF. The external independent reviewer will be required to prepare an annual report of the basis of his/her evaluations, which must be filed before September 15 on a yearly basis.

The Resolution sets forth that the Registry of External Reviewers must be public and freely accessible from the UIF’s website (https://www.argentina.gob.ar/uif).

The Resolution will enter into force as of December 31, 2017.

Lastly, the UIF has reported that Resolution No. 30-E/2017 (applicable exclusively to financial and exchange institutions) is the first in a number of resolutions which will replace UIF regulations regarding AML/TF, shifting obligations towards a risk-based approach. Consequently, it is expected that the role of external independent reviewer will be implemented by other UIF resolutions to follow in respect of other Obliged Subjects.