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Argentina

The National Securities Commission (Comisión Nacional de Valores or CNV) has enacted its General Resolution No. 288, which aims to prevent money-laundering. The Resolution sets out general rules associated with the information to be provided by the following entities:

  • securities brokers that do not qualify as financial entities under Law 21,526, and that are registered with a securities market authorized to operate as such by the CNV under the terms of General Resolution No. 201/92;
  • brokers registered with a commodity futures and options market, and that do not qualify as financial entities under Law 21,526;
  • stock exchanges that are not associated with a securities market; and
  • investment funds (fondos comunes de inversión) that do not qualify as financial entities under Law 21,526.

These entities must report to the CNV any activity that appears to be unusual or to conceal illegal purposes. In addition, they must comply with the information requirements contemplated in the various annexes of the Resolution (such as disclosure of the activities generating the transaction, aggregate amounts for certain periods and the like) whenever aggregate amounts exceeding US$50,000 in a calendar month, or US$200,000 in a calendar year, are deposited in an account or in a combination of accounts that are identified as being under the name of one or more given individuals. Annex I to the Resolution stipulates that the information should be disclosed on a quarterly basis.

The Resolution, which took effect on July 1, states that the CNV will share the information obtained under its provisions with the Central Bank. In addition, it stipulates that all securities markets should have implemented similar provisions by July 1. If they have failed to do so, pension funds (administradoras defondos de jubilaciones y pensiones) will not be able to invest in securities traded at such markets.

The Resolution was inspired by similar measures recently enacted by the Central Bank (Communications Nos. A2451, July 1996, A2469, September 1996 and A2509, January 1997, and others), by means of which financial institutions have been given specific reporting requirements regarding the monitoring of 'speculative behaviour'.

In particular, these rules include a list of transactions that should be taken into account in identifying fraudulent activities, and require financial institutions to open and maintain accounts based on their personal knowledge of clients. Likewise, the Resolution follows the guidelines set out in the Vienna Convention of 1988, to which Argentina is a party.

Ignacio Nicholson

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