Anti-Money Laundering – Operations to Be Considered Suspicious of Terrorism Financing

On February 15, 2013, the Financial Information Unit ("FIU") issued Resolution No. 29/2013 (the "Resolution") whereby:

1. detailed a list of operations to be considered suspicious of terrorism financing, in accordance with (i) Resolution No. 1267 (1999) and subsequent of the Security Council of the United Nations (“Resolutions of the Security Council”) and (ii) Sections 41 quinquies and 306 of the Argentine Criminal Code ("Criminal Code"). Such transactions or attempted transactions are to be considered suspicious of terrorism financing if any of the following circumstances is met:

   a) that the goods or money involved in the operation were direct or indirect ownership of a natural or legal person or entity included in the Resolutions of the Security Council, or controlled by such natural or legal person;

   b) the natural or legal persons or entities conducting the operation are persons included in the Resolutions of the Security Council;

   c) the recipient or beneficiary of the operation is a natural or legal person or entity included in the Resolutions of the Security Council;

   d) the goods or money involved in the operation could be linked to the financing of terrorism or illegal acts committed with terrorism purposes, under the terms of sections 41 quinquies and 306 of the Criminal Code.

2. amended the deadline for the preparation and issuance of the report of terrorism financing to the FIU (which was 48 hours), establishing that the report should be done "without delay";
3. detailed the procedure that the obligated subjects must observe when receiving a notification of an administrative order to freeze assets or money from a person ordered by the Financial Information Unit;
4. established that the breach of any of the obligations specified in the Resolution shall be subject to the administrative criminal sanctions set forth in Chapter IV of Law 25,246 as amended.

The Resolution set forth a timeframe of 60 days counted as from the date of its publication in the Official Gazette (February 18, 2013) for the obliged subjects to implement the amendments introduced by the Resolution, thus, the Resolution will enter into force on April 19.