English translation of the original article in Spanish. If there is any discrepancy, the Spanish version prevails.
In October 2024, Argentina achieved an important institutional milestone by completing the FATF Fourth Round of Mutual Evaluations without being placed on the so-called grey list. Two years on, the challenge is to keep strengthening the effectiveness of the anti-money laundering system.
In this context, the UIF regulation linked to the tax innocence regime is an opportunity to move towards a more efficient, risk-based model aimed at promoting financial inclusion.
The initiative seeks to bring funds into the formal economy, encourage the use of the banking system and reduce obstacles for certain taxpayers. At the same time, it is consistent with the principles of FATF Recommendation 1, which calls for controls proportionate to the risks identified.
Indeed, a more effective prevention system is not necessarily the one that imposes more controls, but the one that concentrates its resources where the risks are highest.
The possibility of simplifying certain requirements for sectors considered lower risk, provided there is a well-founded assessment, would ease operational burdens and direct greater efforts towards detecting transactions linked to serious crimes such as drug trafficking, human trafficking and other organized crime activities.
Naturally, joining the tax innocence regime does not guarantee that the funds are lawful, nor does it remove prevention obligations. Applying the risk-based approach requires maintaining controls suited to the characteristics of each customer and transaction.
This regulatory development is a positive step towards modernizing Argentina’s prevention system. Its success, however, will depend not only on the rules but also on effective cooperation between the public and private sectors.
It is therefore essential to strengthen dialogue between the UIF, supervisory bodies and reporting entities, through training sessions, exchanges of experience and feedback mechanisms that allow procedures to adapt to a constantly changing economic and financial environment.
Two years after the FATF evaluation, Argentina has the opportunity to consolidate the progress achieved and keep evolving towards a smarter, more proportionate and more effective prevention system.
The next challenge is not to control more, but to control better.
General information only. This is not professional advice on any particular case.