Argentina is preparing to renew its law on money laundering and the financing of terrorism. It has proposed to include the creation of a register of virtual asset service providers (VASPs) in the country as part of the new changes. The changes will prepare the country for the review that the Financial Action Task Force (FATF) is scheduled to do on the subject next year.
Argentina may create a unified VASP register
The discussion on a proposed revision of the Law on Money Laundering and Financing of Terrorism in Argentina may include the creation of a unified VASP register. The proposal, which is being put forward by several institutions in the country, including the Argentine Tax Authority (AFIP), and also the National Securities Supervisory Authority (CNV), will bring the legislation up to modern standards.
This would be the first change lawmakers are pushing to a law that has been untouched for 11 years. The institutions presented the changes to the nation’s deputy leader in a meeting that took place on 25 November. One of the aims of this move would be to prepare the country for the review that the FATF is scheduled to carry out on Argentina’s controls next year.
The reform would also allow AFIP to build a database of unique recipients, with CNV at the forefront of the proposed VASP registry.
Changes focused on bringing security to users
The proponents of these modifications explain that these are inspired by similar changes that have been implemented by other countries that have already been reviewed by the FATF, and are part of the steps that must be taken before starting to draft cryptocurrency-specific regulation in Argentina.
Sebastian Negri, head of the country’s anti-money laundering organization (UIF) elaborated on the need for these modifications to be approved and implemented. He stated:
We must be able to create a register that meets international standards for the prevention of money laundering and terrorist financing.
Furthermore, Negri also stated that these modifications would be helpful in protecting users’ funds on these platforms from potential failures and even bankruptcy, taking cues from the situation faced by FTX, one of the top three cryptocurrency exchanges.
Negri also mentioned that the use of personal data held by these companies will be tackled in this reform.
Argentina was recently part of a study by Global Financial Integrity, a Washington DC-based think tank, which concluded that cryptocurrency regulation in Latam was still ineffective in detecting and prosecuting crypto-related crime.
What do you think of the reforms proposed in the anti-money laundering laws in Argentina? Tell us in the comments section below.
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