The CNV reinforces control over the LACs: what it means

The CNV reinforces control over the LACs: what it means
October 3, 2023 – 07:53

Additionally, careful monitoring of so-called Unusual Operations will be implemented, with the aim of identifying transactions that lack economic or legal justification.

The National Value Comission (CNV), in close collaboration with the Federal Public Revenue Administration (AFIP), is deploying a joint supervision operation in the heart of the Stock Marketdedicated to ensuringu transparency and integrity.

The magnitude of this initiative implies a meticulous analysis of a significant amount of stock market operations. The main focus lies in thoroughly examining the financial capacity of the clients of the brokerage housesevaluating their aptitude to carry out said transactions.

To carry out this task, AFIP has undertaken a comprehensive evaluation, using a variety of sources of information. This includes closely reviewing the Affidavits submitted by taxpayers, as well as data provided by both public and private entities. This approach aims to identify any discrepancies between the operations carried out and the declared income.

In addition, the AFIP plans to carry out tax audits specific measures aimed at those taxpayers who cannot adequately justify the origin of the funds used in your financial operations. This is part of a diligent effort to maintain market integrity and ensure that all transactions are conducted in accordance with applicable laws and regulations.

Additionally, a detailed monitoring of the so-calleds Unusual Operations, with the objective of identifying transactions that lack economic or legal justification. This process will include both isolated transactions and those that are repeated without solid foundations, deviating from usual market practices in terms of frequency, quantity, complexity and particular characteristics.

In this context, this Tuesday it was published in the Official bulletin a general resolution issued by the CNV. According to the official text, the measure aims to “provide greater transparency to the capital market” and “reduce the volatility of financial variables“.

For it, The resolution establishes the following requirements for Trading Agents and Settlement and Clearing Agents:

  • They must request the following information from their foreign clients who have CDI, CIE or CU.IT:
  • Full name
  • Home
  • Nationality
  • Type of legal entity (if applicable)
  • Economic activity
  • Source of funds
  • They must inform the CNV about their clients’ investments that they have. CDI or CIE and are owners and/or co-owners of one or more client subaccounts.

The information that Agents must provide to the CNV includes:

  • Operation type
  • Operation date
  • Operation amount
  • Nominal value of the negotiable securities involved
  • Customer identification

Information to report includes:

  • Detail of the totality of the operations carried out by said subjects in the scope of the Markets authorized by the CNV, in pesos and/or foreign currency.
  • Detail of issuing transfers and reception of negotiable securities carried out by said subjects that do not respond to settlement of operations.
  • Detail of receipts or withdrawals of pesos and/or foreign currencyboth bank transfers and physical checks or e-cheqscarried out by said subjects.

The new information regime is framed in el Strategic Plan 2023-2027 of the CNV, whose one of its main objectives is to strengthen the transparency and integrity of the Argentine securities market.

Source: Ambito

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