Anti-Money Laundering and Terrorism Financing – Amendments to Resolution No. 121/2011

On March 27, 2013, the Financial Information Unit (“FIU”) issued Resolution No. 68/2013 (“The Resolution”) by which it introduced changes to FIU Resolution No. 121/2011, that regulates the obligations of financial entities under Law No. 21,526 as amended, the entities under Law No. 18,924 as amended and the natural or legal person authorized by the Central Bank of Argentina (“BCRA”) to operate in the purchase of foreign currency using money or checks drawn in foreign currency, or in the transfer of funds in and out of the national territory, as obliged subjects before the FUI (the “Obliged Subjects”).

According to the Resolution, Obliged Subjects must set up a schedule to update their client´s files, according to their risk policy. Namely, for clients for whom the existence of a higher risk of money laundering and/or terrorism financing has been assessed, the update of the files will have to be done more frequently. Conversely, for clients for whom the existence of a lower risk of money laundering and/or terrorism financing has been assessed the update of the files will have to be done less frequently. This regulation is in line with Recommendation 1 from the FATF (Financial Action Task Force), which established that, in order to fight against money laundering and terrorism financing, countries should put in place an analysis based on risk assessment and make sure that the measures adopted are proportional to the identified risks.

Furthermore, it established that the policies implemented to update the files must be reviewed on an annual basis and shall be sent to the FUI and the BCRA before April 1 of each year. On the other hand, it has also established that in order to update the files, the Obliged Subjects may use information and documentation published by Public Organisms, if applicable.

The Resolution also provides that the Obliged Subjects must report to the FUI “without any delay” transactions suspicious of terrorism financing, and in no event, later than the following 48 hours.

The Resolution entered into force on the day it was published in the Official Gazette, (i.e. April 9, 2013).