EXECUTIVE SUMMARY
1. This report summarises the anti-money laundering (AML)/combating the financing of terrorism (CFT) measures in place in Argentina as of the time of the on-site visit (16-27 November 2009), and shortly thereafter. The report describes and analyses those measures and provides recommendations on how certain aspects of the system could be strengthened. It also sets out Argentina’s levels of compliance with the Financial Action Task Force (FATF) 40+9 Recommendations (see the attached table on the Ratings of Compliance with the FATF Recommendations).
1. Key Findings
2. This is the FATF’s third mutual evaluation of Argentina (and second joint FATF/GAFISUD evaluation of Argentina). Since the last evaluation, finalised in June 2004, Argentina has not made adequate progress in addressing a number of deficiencies identified at that time, and the legal and preventive AML/CFT measures that are in place lack effectiveness. This is complicated by a lack of adequate coordination, overlapping jurisdictions of a number of domestic agencies, and varied and inconsistent requirements vertically through the levels of applicable regulatory texts for each financial sector and horizontally across the various financial sectors.
3. Argentinean authorities identify tax evasion as generating the largest amount of criminal proceeds. Drug trafficking also generates significant proceeds. It is believed that the major part of money laundering operations taking place in Argentina is carried out through financial transactions involving specific offshore centres. The most common money laundering operations in the non-financial sector involve transactions made through attorneys, accountants, and corporate structures. The widespread use of cash may also leave Argentina vulnerable to money laundering. There is also a risk of terrorist financing; Argentina was subject to two terrorist attacks in the early 1990’s. Despite these ML/FT risks, there were only four ongoing prosecutions and no convictions for ML.
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Detailed report link: here