Money laundering: Argentina faces a litmus test before the FATF, how will it fare?

He Financial Action Task Force (FATF)an international organization that establishes global standards for Prevention of Money Laundering and Financing of Terrorism (PLA/FT), will announce this Thursday in Paris the Report with the result of the Mutual Evaluation process of Argentina.

This report analyzes the results of Argentina’s performance in matters of fight against money laundering and the financing of terrorism. A delegation of representatives of our country, led by the Minister of Justice, Mariano Cúneo Libarona, and the head of the Financial Information Unit (UIF), Ignacio Yacobucci, traveled to Paris to learn about the FATF diagnosis. The report was prepared based on a review process that covers the four years of Alberto Fernández’s government and the first three months of Javier Milei’s administration.

In this way, It will be announced whether or not the country is on the “gray list”which is the one that nominates the nations that present money laundering risks. Argentina was already in that group between 2010 and 2014, but it made efforts to get out and succeeded. The list includes those states that, as Venezuela and Monacodo not collaborate in the fight against capital resulting from financial crimes. Other countries included are Croatia, Bulgaria, Burkina Faso, Cameroon, Democratic Republic of the Congo, Haiti, Namibia, Nigeria, Senegal, Syria, Vietnam and Yemen.

Argentina corrected some regulatory points indicated by the FATF

A few months ago, many voices warned that the country could join, once again, that organization’s payrolldue to failures in compliance with international recommendations on the prevention of money laundering and financing of terrorism (AML/FT), but, at this time, the experts’ view is more optimistic.

“It looks like the news is going to be good. After the meeting called ‘face to face’ in June, the situation was greatly improvedsince almost all the points observed were corrected,” a specialized source tells Ámbito.

The public accountant, consultant and international speaker on money laundering prevention Daniel Perrotta points out that “the supervision part of the Financial Information Unit (UIF)Central Bank (BCRA) and National Insurance Superintendency (SSN) “It seems that they have the management approved and they saw the financial sector and Fintech well, but the regulation of the exchanges was somewhat fair and they made some changes to the regulations.”

Thus, it mentions that the Government corrected some problems that the FATF pointed out throughout the evaluation process. It refers, for example, to the approval of Law 27,739, which modified the Penal Code, added obligated subjects, such as payment service providers, crypto exchanges and lawyers, among others, and increased the amounts of the penalties. “These changes were approved in March in the Senate and were an advance in compliance with the FATF recommendations,” highlights Perrotta.

Along the same lines, he points Fernando DiPasqualeaccountant graduated from the University of Buenos Aires, teacher and founding partner of Fidesnet, when he maintains that “we are going to do better than expected.” The expert says that this Tuesday, the case of Argentina was discussed in the subgroup and on Thursday in the plenary session and anticipates that, “although the evaluation was very difficult, the Argentine system has evolved favorably.” Although he warns that “the weakest point is the effectiveness of the judicial system.”

Effectiveness in combating money laundering, a weak point

What happens is that, as Perrotta details, “FATF measures two things: regulatory framework, on the one hand, and efficiencyon the other” and points out that “Justice does not show much efficiency” in terms of convictions for financial crimes in Argentina. This is how, as a voice close to the Financial Information Unit (UIF) warns, “in terms of compliance normatively, Argentina is well qualified, but it would not be so qualified in terms of effectiveness”.

In fact, he mentions that, just when the FATF mission was in Argentina, it came to light that the Skanska case was being resumed, which dates back to 2007 and has not yet been resolved by Justice. one of the many causes of corruption that still have no resolution in our country, especially those that involve politics.

Thus, Perrotta points out that It is expected that Argentina will approve the FATF evaluation process and do not enter the gray list, but warns that the issue of the effectiveness of justice is an element that raises alarms among experts regarding Thursday’s result.