Requirements for the purchase and sale of foreign currency to Argentine residents. Communication “A” 4834 on the BCRA

As of August 15, 2008 Argentine financial entities and exchange agencies can purchase and sell foreign currency from and to individuals and legal entities that are Argentine residents upon filing of a sworn statement of the client indicating the purpose of the transfer (concept) only when the following conditions are met:

1.    Purchase of foreign currency:

(a)   The purchase of foreign currency to the client shall not exceed a total amount of US$ 5,000 per calendar month.

(b)   Funds are credited in a client’s bank account.

(c)   The transfer was ordered by a non-Argentine resident for (i) payment of services rendered or to be rendered by the resident; (ii) cancellation of debts owned by the non Argentine resident to the Argentine resident; (iii) payment of expenses resulting from services rendered by the Argentine resident in Argentina or; (iv) for other transactions.

Transfers of funds for other concepts such as repatriation of funds of Argentine residents are not included in this communication and, thus, general rules apply to them. This regulation does not apply when the beneficiaries of the transfers are intermediaries that operate in the financial, stock or foreign exchange markets.

2.    Sale of foreign currency:

(a)   The sale of foreign currency to the client shall not exceed a total amount of US$ 5,000 per calendar month.

(b)   The funds are debited from a client’s bank account.

(c)   The transfer has a non-Argentine resident as beneficiary and is made for the payment of debts owned by the Argentine resident (e.g. reimbursements, payment of services and other transactions); or has as beneficiary an Argentine resident that is in a foreign country for tourism purposes.

Transfers of funds for other concepts such as (i) the creation of foreign assets by Argentine residents or; (ii) transfers to beneficiaries that are intermediaries in the financial, stock and foreign exchange markets are not included in this communication and thus, general rules apply to them.

Com. 4834 does not affect other applicable regulations related with the prevention against money laundering and financing of terrorism. Also, in the event that general rules set forth additional requirements for the purposes declared, the sworn statement must specify that the transaction complies with such requirements.

Transactions made in accordance with this communication will be registered under codes 12 and 16, as applicable.