Anti-Money Laundering And Counter-Terrorism Financing: Foundations And Civil Associations

Author:Mr Javier Boneo and Maria Claudia Paluszkiewicz
Profession:Marval O'Farrell & Mairal

General Resolution No. 2/2017, issued by the Public Registry of the City of Buenos Aires ("IGJ"), updated the thresholds applicable to foundations and civil associations to comply with information regimes.

On February 21, 2017, General Resolution IGJ No. 2/2017 (“Resolution 2/2017”) was published in the Official Gazette, modifying Sections 516 and 517 of General Resolution IGJ No. 7/2015, regarding information regimes applicable to foundations and civil associations.

Pursuant to Section 20, paragraph 15 of Law 25,246, and Resolution FIU 29/2011, the IGJ is an informing agent (“sujeto obligado”) that must report to the Financial Information Unit (“FIU”) the conducts or activities of individuals or legal entities that may imply an act or transaction that is suspicious of money laundering or terrorism financing.

Resolution 7/2015 includes “know your client” provisions, concerning the entities subject to the IGJ's supervision and the proceedings within its jurisdiction, such as: annual sworn statement regarding compliance with anti-money laundering rules; identification of final beneficial owner; verification of terrorist lists regarding members of administrative bodies; and statement on condition as Politically Exposed Person.

In particular, Resolution 2/2017 amends the current regime applicable to foundations and civil associations, in order to adapt the thresholds set forth under Resolution 7/2015 pursuant to recent FIU updates (Resolution FIU No. 104/2016), as follows:

  1. Annual Sworn Statement: Foundations must file a sworn statement reporting the status of compliance with the resolutions enacted to prevent money laundering and terrorism financing crimes, if the entity receives donations or third-party contributions for amounts exceeding seventy thousand pesos (ARS 70,000) (approximately USD 4,375) or the equivalent in kind (valued at market price) in a single act or several acts that: (a) in the aggregate exceed seventy thousand pesos (ARS 70,000) (approximately USD 4,375), and (b) are made by one or several related persons, within a period not exceeding thirty (30) days.

    The sworn statement must be executed by the Compliance Officer (or, in case his/her appointment is pending, by the Chairman of the Board) and certified by a notary public. The sworn statement must be filed together with the supporting...

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