The Central Bank of Uruguay (BCU) and the National Anti-Money Laundering and Terrorism Financing Secretariat (Senaclaft) are in the process of preparing regulations for the financial and nonfinancial sectors, respectively, under Law No. 19,574, which is expected to be approved shortly.
The changes for the financial sector under the new regulations are:
- Maintenance of records for 5 years following end of a commercial relationship.
- Definitions of politically exposed person and of ultimate beneficiary.
- Institutions cannot establish business relationships or perform transactions when they are unable to apply the due diligence procedures set out in the regulations. Similarly, if this inability arises in the course of a business relationship, institutions must terminate same and report the unusual or suspicious transaction to the Financial Information and Analysis Unit (UIAF).
- Procedures are established for verifying client identity, which in certain cases must include personal contact.
- Information on low-risk clients must be updated every 5 years, medium-risk clients every 2 years, and high-risk clients annually.
The changes for the nonfinancial sector under the new regulations are:
- Information and documentation required in client due diligence processes, depending on whether simplified, normal or intensified diligence is required.
- Specific regulation of activity by sector.
- Obligation to appoint a compliance officer in charge of fostering implementation of anti-money laundering procedures and obligations. This person will be the liaison with the UIAF, Senaclaft and other competent authorities. The compliance officer may be the same person regulated by the law.
- Persons regulated by the law must file with Senaclaft within a maximum of 90 days from the date of effectiveness of the regulations. Filing will be via the pertinent on-line procedure at the Uruguayan State Portal, made available on the Senaclaft webpage.