Argentina is preparing to review its law against money laundering and the financing of terrorism. He proposed to include the creation of a registry of virtual asset service providers (VASPs) in the country as part of the new amendments. The changes would prepare the country for the Financial Action Task Force (FATF) review of the subject next year.
Argentina could create a unified VASP registry
Discussion of a proposed overhaul of the anti-money laundering and terrorist financing law in Argentina could include the creation of a unified VASP registry. The proposal, which is made by several institutions in the country, including the Argentine tax authority (AFIP), as well as the national securities regulator (CNV), would bring the legislation up to modern standards.
It would be the first change lawmakers have imposed on a law that hasn’t been changed in 11 years. The institutions presented the changes to the nation’s Chamber of Deputies in a meeting that took place on November 25. One of the purposes of the move would be to prepare the country for the FATF review of Argentina’s controls next year. .
The reform would also allow the AFIP to build a database of unique beneficiaries, with the CNV leading the proposed VASP registry.
Targeted changes to bring security to users
Proponents of these changes explain that they are modeled on similar changes that have been implemented by other countries already reviewed by the FATF, and are part of the steps to take before embarking on the preparation of a regulations specific to cryptocurrency in Argentina.
Sebastian Negri, head of the country’s anti-money laundering organization (UIF), explained the need to approve and implement these changes. He declared:
We must be able to create a register that complies with international standards for the prevention of money laundering and the financing of terrorism.
In addition, Negri also said that these changes would be useful in protecting the funds of users of these platforms against potential failures and even bankruptcy, taking inspiration from the situation in which FTX, one of the three major exchanges of cryptocurrency, is currently facing.
Negri also mentioned that the use of personal data that these companies possess would be addressed in this reform.
Argentina was recently part of a study made by Global Financial Integrity, a Washington DC-based think tank, which concluded that cryptocurrency regulation on Latam was still ineffective in detecting and convicting crypto-related crimes.
What do you think of the proposed reforms to anti-money laundering laws in Argentina? Tell us in the comments section below.
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