An effective anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CTF/CPF) system cannot be separated from the macroeconomic reality of the country in which it is implemented. Indeed, the Argentine economy has historically presented high levels of informality, recurrent macroeconomic instability, high inflation, foreign exchange restrictions and distrust in the traditional financial system. This situation has had an impact on financial behavior, saving habits, and use of foreign currency in cash.
In this regard, Law 27,799, published on January 2, 2026, introduces substantial changes in the tax system and in the tax authority-taxpayer relationship. Among other aspects, it updates the objective criteria of punishability for the offense of tax evasion, with the economic threshold being significantly raised. Additionally, a Simplified Income Tax Return Regime is created: the Customs Control and Collection Agency (Agencia de Recaudación y Control Aduanero, ARCA) makes a pre-filled tax return available to taxpayers, which can be reviewed, validated and filed, and, if timely paid, there is a discharging effect that limits and conditions potential future investigations. Likewise, in line with the principle of tax innocence, the law redefines the relationship between taxpayers and the tax authority by establishing that ARCA must apply the presumption of tax compliance unless proven otherwise, limiting preventive asset controls and abandoning the historical mechanism of generalized persecution.
By virtue of this, the Financial Information Unit (Unidad de Información Financiera, UIF) and the BCRA outline the following considerations that must be taken into account by reporting parties:
Holding dollars in cash
As international organizations have stated, holding foreign currency in cash in economies with a history of high inflation and exchange rate volatility is an economically rational behavior aimed at preserving the value of assets. This is not, in itself, an indication of illegality nor does it justify an automatic classification. It must be assessed within the framework of a risk-based approach (RBA), considering the customer’s profile, the economic reasonableness of the transaction involved and the existence of other concurrent warning indicators, if any.
Using and/or depositing dollars in cash
The anti-money laundering regulations do not prohibit cash deposits, regardless of the amount.
Under such regulations, no information about the source of funds is required at a teller’s counter as a prerequisite for a deposit.
Only the depositor and the account holder should be identified, as required by the regulations, when the amount exceeds 40 minimum wages.
Adherence to the Simplified Tax Return Regime, a favorable factor in the identification and monitoring of transactions
Executive Order 93/2026 dated February 8, 2026, which regulates Law 27,799, urges reporting parties to consider a taxpayer’s adherence to the Simplified Tax Return Regime as a favorable factor in their risk analysis.
Reviewing transaction thresholds and document requirements
Where the source and allocation of funds are consistent with a customer’s declared activity and economic profile, and the amount involved is below the threshold established for the offense of tax evasion, it may be unnecessary to require additional documentation where no relevant inconsistencies are identified in line with a reasonable RBA and according to a comprehensive risk analysis carried out by the reporting party.
Improved quality of alerts and analysis of transactions
Based on this approach, reporting parties must carry out a comprehensive analysis of customers, including their characteristics and transactional behavior, along with the nature and reasonableness of their transactions. The assessment should not be limited to their tax profile.
Within this framework, and with the aim of strengthening financial inclusion, promoting the use of formal channels, and preserving the integrity of the system for the prevention of money laundering, terrorist financing and proliferation financing, the RBA is a key tool to ensure an appropriate and effective treatment of any funds deposited in the financial system. Consequently, reporting parties must adjust their prevention systems by updating their risk matrices accordingly to reflect the regulatory amendments in force—in particular, the increase in the objective criterion of punishability—and enhance the classification of customers, the monitoring of transactions and the management of their systems’ internal alerts. This is to avoid requests of source of funds documentation that are inconsistent with the RBA and with the applicable regulations.
In view of the above, reporting parties are urged to enhance the RBA and to update their AML/CTF/CPF systems, in accordance with Resolution 14/2023, as amended, with AML/CTF/CPF obligations under Law 25,246, as amended, remaining effective.
