The Central Bank of Uruguay (“BCU”) has issued circulars 2367, 2368, 2369 and 2370, applicable to financial intermediaries, securities brokers, retirement funds, and insurers and reinsurers, respectively, within the framework of asset laundering and terrorist financing prevention. 

Financial institutions, securities market, insurers and pension fund administrators

With a view to aligning BCU regulations with Law 19,749 on prevention of terrorist financing and proliferation of weapons of mass destruction, BCU rules have been amended in connection with control list verification. Among the lists are those related to financing of the proliferation of weapons of mass destruction, where the rules establish the duty of preventive freezing of funds and financial assets, in addition to not permitting entry of new assets, if a match is found with any of the lists.  

Financial institutions and securities market

An exception from the requirement to conduct intensified due diligence procedures has been established for the nonfinancial reporting entities listed in article 13 of Law 19,574, regulated by SENACLAFT, provided their asset laundering prevention systems have been favorably evaluated. 

The transaction threshold for identifying ultimate beneficiaries has been raised from USD 10,000 to USD 50,000 for clients meeting the following conditions: 

  • Clients who manage third-party funds and are not reporting entities in connection with asset laundering prevention or, if they are reporting entities, their prevention systems have not been evaluated favorably.
  • Clients engaging in transactions more than USD 600,000 in a calendar year.

As in the foregoing paragraph, the transaction threshold for identifying ultimate beneficiaries has been increased from USD 50,000 to USD 100,000 for the same clients, but if in this case they do not reach USD 600,000 in a calendar year.