The Executive Branch Enacted the Proposed Bill Amending the Anti-Money Laundering and Terrorist Financing Law

As we mentioned in our last edition (please refer to “The Proposed Amendment to the Anti-Money Laundering and Terrorist Financing Law is Advancing Towards Approval by Congress”, published in Marval News # 105 on May 31, 2011), the Argentine Congress was expected to approve the Bill during the first days of June 2011, given that the plenary meeting of the Financial Action Task Force (FATF) was scheduled to take place in Mexico between June 20 and 24. The Bill No. 26,683 enacted by the Executive Branch includes all the amendments described in our previous Marval News, except for the partial veto of Article 25, which it enacted would have prevented the Financial Information.

Late last year, the FATF issued a report which stressed that Argentina had not satisfactorily addressed the recommendations issued by that agency regarding the period 2004-2009 and expressed its concern about the deficiency of the measures taken to prevent money laundering and terrorist financing. Then, during their meetings earlier this year, FATF authorities recognized Argentina’s actions in order to adjust its anti-money laundering and terrorist financing regulations to international standards, and decided to analyze Argentina’s status again in their meeting to be held in Mexico in June 2011. In the meantime, Argentina was subject to a surveillance proceeding known as International Co-operation Review Group (ICRG) regarding its compliance with FATF recommendations.

At the end of the FATF plenary meeting on June 24, 2011 in Mexico, the FATF authorities issued a public document named “Improving Global AML/CFT Compliance: on-going process”, which contains a list of countries that have strategic deficiencies and are subject to an on-going review of compliance with the anti-money laundering and terrorist financing standards, for which they have developed an action plan with the FATF. In the case of Argentina, FATF authorities issued a statement on the progress made by the country in addressing the identified deficiencies. The FATF heard Argentina’s report on progress made since February 2011 and recognized the important legislative efforts aimed at improving the criminalization of money laundering (which includes the amendments made by Law No. 26,683). The FATF also expressed some specific concerns that there are still shortcomings in the criminalization of money laundering, and that further clarification is required. The FATF expects more substantial progress by Argentina by October 2011. In particular, the FATF expects Argentina to fully address the FATF’s concerns regarding the criminalization of money laundering in accordance with international standards, present to the FATF a draft law criminalizing terrorist financing, and inform about the progress in addressing the other anti-money laundering and terrorist financing deficiencies.

Finally, on June 1, 2011, the Senate also approved a new Bill which intends to correct certain aspects that were discussed during the debate of the Bill. Currently this new Bill is under consideration by the House of Representatives. The principal modifications proposed by this “corrective” bill are the following:

1. the incorporation as precedent crimes of "aggravated tax evasion, aggravated pension evasion, unfair advantage of subsidies, fraudulent tax benefits, and conspiracy to commit tax crimes”;
2. the inclusion in the categories of obliged subjects of “professionals acting as corporate trustees or external auditors of financial statements”, and
3. the distinction in the treatment between infractions for the breach of the “duty to inform” to the UIF suspicious transactions and other failures to comply with applicable regulations established by the Anti-Money Laundering and Terrorist Financing Law and its implementing regulations.