FATF Status

Argentina is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Latest FATF Statement - 24 October 2014

The FATF welcomes Argentina’s significant progress in improving its AML/CFT regime and notes that Argentina has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in June 2011. Argentina is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Argentina will work with the FATF and GAFISUD as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken. 

27 June 2014  -  FATF confirmed that Argentina has made significant progress in addressing the deficiencies in its anti-money laundering/countering the financing of terrorism (AML/CFT) measures as identified in the mutual evaluation report of October 2010.  The assessment team conducting the mutual evaluation, rated Argentina non-compliant (NC) or partially compliant (PC) on all of the Core and Key Recommendations.  As a result of this lack of compliance with the Core and Key Recommendations, the FATF Plenary placed Argentina in an enhanced follow-up process. The follow-up process is a desk-based review that monitors that a country takes the necessary steps to strengthen its AML/CFT framework.

Since the adoption of the mutual evaluation report in 2010, Argentina has taken a number of important steps to strengthen its legal and regulatory framework.  In particular, Argentina has:

reformed and strengthened the money laundering offence, enhanced the scope of reporting parties covered and transferred the AML/CFT supervision to the financial intelligence unit (FIU).

Enhanced the terrorist financing offence, in particular by criminalising the financing of terrorist acts, terrorists, and terrorist organisations.

Through the FIU, issued a series of resolutions concerning customer due diligence (CDD) and record-keeping requirements as well as other AML/CFT measures to be taken by reporting parties.

Created a framework to comply with United Nations Security Council Resolutions 1267 and 1373

As a result of this progress, the FATF Plenary decided that Argentina had taken sufficient steps in addressing technical compliance with the core and key Recommendations to be removed from the follow-up process.Since June 2011, Argentina was also submitted to the FATF  International Co-operation Review Group process, and identified as a country with strategic AML/CFT deficiencies.  The FATF has determined that since 2011, Argentina has substantially addressed, on a technical level, the action plan agreed to with the FATF.  The procedures for exit from the ICRG process, require the FATF to conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF.  A successful outcome of that visit would result in Argentina no longer being identified as a country with strategic AML/CFT weaknesses.

Argentina has implemented various measures to combat public sector corruption, including the Public Ethics Law and the Corporate Criminal Liability Law, which extends anti-bribery sanctions to corporations. However, the enforcement of these laws remains inconsistent, with significant gaps in regulations and a lack of accountability for foreign bribery. Corruption continues to be a major issue, as evidenced by Argentina's low ranking in the Corruption Perceptions Index, highlighting the need for stronger institutional frameworks and judicial independence to effectively address these challenges.

Argentina's economy faces significant challenges, including high inflation, recession, and economic stagnation, which have hindered its potential despite opportunities in various sectors such as agriculture and technology. The new administration under President Javier Milei, which took office in December 2023, aims to implement structural reforms to stabilize the economy and attract investment by reducing interventionist policies and addressing inflation. However, the country still grapples with capital controls and a high tax burden that complicate the investment climate.

Argentina's investment climate is characterized by significant opportunities in sectors such as agriculture, mining, energy, and technology, but is hindered by high inflation, economic stagnation, and interventionist policies. The new administration under President Javier Milei aims to improve the investment environment by removing some of these policies and addressing inflation, although challenges such as capital controls and a high tax burden remain. The government is committed to structural reforms to create a more market-friendly economy, but investors still face obstacles related to regulatory instability and the need for macroeconomic stabilization.