ARGENTINA COUNTRY RISKS RAISED >
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Financial Crime Consultant for WANTED SA >
Sunday November 21, 2010 >
WANTED SA is pleased to post articles ** Compliments of Mr. Kenneth Rijock.
DIFFERENT ANGLE by Kenneth Rijock
Financial Crime Consultant, for World-Check
Raise Country Risk for Argentina ?
Germany's principal regulatory agency, the Federal Financial Supervisory Authority [BaFin]*, has issued a sharp warning about AML deficiencies in Argentina, based upon the latest FATF Mutual Evaluation Report**, which states that "Argentina has not made adequate progress" on anti-money laundering issues. There are also reports that FinCEN has suspended the delivery of confidential money laundering intelligence to Argentina after resricted information was leaked to the press, and published. The deficiencies listed by FATF should be reviewed by compliance officers at international banks whose clients have business in, or conduct transactions with, Argentine financial institutions and NBFIs.
The primary defects cited in the report, in my humble opinion, are:
- There are only a small number of AML investigations, and no convictions. This is the primary problem.
- There are no adequate prohibitions for shell banks.
- The requirements for the filing of suspicious activity reports are limited.
- Cross-border correspondent banking relationships are not regulated
I strongly encourage Argentinian authorities to make progress on these issues.
At this point, you should take a fresh look at your current country risk levels for Argentina.
**Mutual Evaluation Report: Executive Summary
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
WANTED SA thanks Mr. Kenneth Rijock of World Check and all the Parties, Law Enforcement and Securities forces who have contributed to this article and their sincere opinions and statements.
WANTED SA states that the facts and opinions stated in this article are those of the author and not those of WANTED SA. We do not warrant the accuracy of any of the facts and opinions stated in this article nor do we endorse them or accept any form of responsibility for the articles.