Financial Intelligence Unit Amends Regulations Applicable to Capitalization and Saving Companies

On September 1, 2023, the Financial Intelligence Unit (UIF) issued Resolution No. 169/2023, subsequently modified by Resolution No. 177/2023, amending the regulatory framework in force regarding the prevention of money laundering and financing of terrorism (ML/TF) applicable to reporting entities in capitalization and saving companies sector (SO).

The purpose is to establish and/or amend the SO’s obligations to manage and mitigate ML/FT risks, in accordance with the Financial Action Task Force’s international standards, guides, and guidelines.

The main changes introduced include:

1. Preparing a Risk Self-Assessment Technical Report contemplating risk factors, among others: customers, offered services, distribution channels and geographic location, information provided by the UIF or other authorities about ML/TF risks, and all those situations that may impact the ML/TF risk.
   The Technical Report must be self-sufficient, updated every 2 years, and filed before the UIF before April 30 each year, and whenever there is a change in the SO’s risk level.
2. Incorporating red flag alert signals to determine whether a Suspicious Transaction Report should be filed, in case of, for example, unusually high amounts, deviations in the client's profile, customers attempting to carry out transactions with counterfeit money, customer transactions that due to their magnitude, regularity, or periodicity exceed the usual practices, among others.
3. SOs whose annual income exceeds ARS 10,000,000,000—amount that will be updated twice a year, in January and July—must appoint an independent external reviewer who will issue a biennial report. Said report must be submitted to the UIF before October 31 of each year, when the Risk Self-Assessment Technical Report is to be submitted.
4. The UIF must be informed of the temporary absence, impediment, leave of absence, or removal of the Compliance Officer within 24 hours of its occurrence (previously, the term was 5 working days).
5. Incorporating new obligations for  Compliance Officers, such as preparing and reviewing the Risk Self-Assessment Technical Report and approving the initiation and continuity of business relationships with high-risk clients and foreign politically exposed persons.
6. Rules are established to identify, verify, and accept non face-to-face clients, establishing automated verification mechanisms.
7. Proposing a segmentation of customers, based on the risk assigned to each of them, and distinguishing the applicable due diligence measures depending on such risk.
8. Submitting before the UIF an Annual Systematic Report containing corporate, accounting, and business information, among others.
9. Reporting suspicious transaction reports within 15 calendar days from the date on which the SO concludes that the transaction is suspicious, and no later than 150 days from the date on which the transaction was carried out or attempted.
10. SO may depend on third parties for carrying out customer due diligence measures only regarding the identification and verification of the customer and the beneficial owner, and the understanding of the purpose and nature of the business relationship.

Likewise, the Resolution established requirements to be complied with in case of depending on third parties, such as taking adequate measures to ensure that the third party will provide—upon request and without delay—copies of identification information and other relevant documents.

It should be noted that the responsibility for complying with the due diligence measures will remain the SO’s, depending on the third party. The new rule will be in force as of November 1, 2023, when Resolution UIF No. 50/13 will be repealed.

However, certain obligations will be required in accordance with the following schedule:

• The Risk SelfAssessment Technical Report and the methodology applied must be submitted by April 30, 2026.
• SOs required to submit the independent external auditor's report must begin to do so by October 31, 2026.
• The annual systematic report must be submitted between January 2 and March 15, 2025.