Anti-Money Laundering – Transfers of Funds

On January 15, 2013, the Argentine Central Bank (the "Central Bank") issued Communication "A" 5384 (the "Communication") by which it modified Communication "A" 5181. Among other things, the Communication set forth the following instructions that the persons authorized by the Central Bank to intervene in foreign exchange market operations must follow:

1. to include in the transfers of funds abroad, and in their related messages, complete information about the beneficiary of the transfers, which shall include, at least, the beneficiary’s name and the transaction number;
2. to put in place effective procedures to detect those transfers from abroad, and their related messages, that fail to contain complete information about the beneficiary, in accordance with the minimum information requested detailed in the previous paragraph;
3. to make any retransfer of funds permitted by the foreign exchange regulations will only be possible to be completed as from the moment in which the missing data of the transfers received by the correspondent account of the local entity is completed. In addition to that, in their participation in the payment chain regarding electronic transfers of funds, local entities shall ensure the existence of complete information regarding the beneficiary, in accordance with the terms indicated in the first paragraph;
4. to keep pending of liquidation in the local exchange market all transfers of funds failing to contain the minimum information regarding the beneficiary (as indicated in the first paragraph), until such lack of information is remedied.
5. to carry out a detailed examination of the transfers of funds, particularly in cases failing to contain all the information required regarding the beneficiary, and verify the accuracy of the information about the entity’s client in case that a money laundering and/or terrorist financing suspicious raise;
6. to reinforce controls on transfers from and to abroad made with countries or territories classified as of low or no taxation in accordance with the terms of Decree No. 1037/2000 and its amendments and countries or territories which do not apply, or that apply in an insufficient manner the Recommendations of the Financial Action Group, and
7. to refrain to carry out transfers involving persons and entities designated in the resolutions of the Security Council of the United Nations No. 1267 (1999) and its successor resolutions, and No. 1373 (2001) related to the prevention and repression of terrorism and terrorism financing.