New AML/CFT regulations with risk-based approach for political organizations

On August 30, 2022, the Secretariat for the Prevention of Money and Asset Laundering ("SEPRELAD") issued Resolution 369/22 "whereby it approves the regulations for the prevention of money laundering (“ML”) and the financing of terrorism (“FT”) with a risk-based approach for political organizations" (the "Resolution").

The purpose of the regulation is to establish regulatory obligations, based on a risk-based approach, to protect political organizations from abuse for the commission of acts of ML/FT, through: (i) the identification and registration of individuals or legal entities linked to their income; (ii) the registration of income and outflows of money or goods; (iii) verification of the origin and destination of the same, among others.

Among the obligations of political organizations, we can mention: (i) the designation of a compliance officer; (ii) having a AML/CFT Manual and a Code of Ethics and Conduct; (iii) to apply due diligence procedures to contributors, benefactors or donors; (iv) to apply due diligence procedure to candidates and their relatives up to the second degree of consanguinity or affinity; (v) register all expenditures, classified by type, amount and other data that contribute to verify the expenses incurred by the political organization; and (vi) submit suspicious transaction reports or, failing that, negative reports, to SEPRELAD.