The BCRA Orders Financial Institutions to Watch Over Inconsistencies in FX Transactions

The Argentine Central Bank (the “BCRA” after its acronym in Spanish) ordered financial institutions to  refrain from executing transactions when they spot any inconsistencies in the documentation filed by their clients in connection with transactions governed by the consolidated text of regulations on “Foreign Trade and Foreign Exchange” (Exterior y Cambios).

Financial institutions are required to report their client’s identifiable information to the BCRA for record-keeping purposes upon such inconsistencies.

Prior to executing any outbound transactions, financial institutions have to check the BCRA’s records of inconsistent transactions to verify whether their client is listed in it. If it is, then they are required to harden their oversight measures to determine whether the proposed transaction is reasonable and legitimate. In addition, they also have to keep a record of their implemented measures in the client’s file.

Finally, the BCRA established that, whenever foreign exchange fraud is suspected, financial institutions must report it to the BCRA in accordance with the provisions of the Criminal Foreign Exchange Law No. 19,359, and applicable procedural rules.