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The BCRA Has Adopted Measures to Prevent Money Laundering and Tax evasion in line with International Practices

The Board of the BCRA has adopted measures—in the exercise of its regulatory powers over the foreign exchange system—regarding the payment of securities transactions in foreign currency. The rule provides that purchase-and-sale transactions of securities to be settled in foreign currency must be paid through any of the following mechanisms:

- Funds transfers from and to sight accounts in the name of the client held at local financial institutions.

- Wire transfers from bank accounts in the name of the client held at a financial institution located abroad, except for those incorporated in countries or regions which fail to apply the recommendations of the International Financial Action Task Force (FATF) or else apply them inadequately.

Under no circumstances may these transactions be paid in foreign currency in cash or in the form of deposit to custody accounts or third parties' accounts.

The rule will be effective as from August 13, 2021.

These provisions are in line with international standards on the prevention of money laundering, tax avoidance and tax evasion, and with the FATF recommendations, among others issued by international organizations. In this sense, they make transactions more transparent and improve the supervision conducted by the regulators of the payment system and of capital markets, and by tax and anti-money laundering authorities.

A similar rule was in force from 2005 until it was repealed a decade later.

August 12, 2021.

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