The Argentine Government (through its Secretariat of Finance) and the Argentine Securities and Exchange Commission are working on a bill to amend the Capital Markets Law that will be sent to Congress sometime in this coming September.
Among other market friendly items of this bill, the same will admit conduct of private banking activities by representatives of those foreign banking and financial entities that have no license from the Argentine Central Bank to operate in Argentina. Up to this date, those activities have been forbidden.
The law and its regulation will contemplate that those representatives of non-licensed foreign banks and financial entities wishing to conduct business in Argentina shall have to enroll with Argentine authorities and pay taxes in Argentina, set-up bank accounts for the inflow of funds, and constitute special domiciles in Argentina.
That welcome to private banking should result in synergy with the tax amnesty program that is currently in place, which is expected to derive in a significant inflow of funds. To boost the outcome the authorities are working in the regulation, to make sure that the investment funds that will channel repatriations shall not be subject to double taxation.
All of the foregoing is part of a broader program, under which the Argentine government has the primary goal of attracting investments. To that end, government is well aware that it is crucial to eliminate barriers to the inflow/outflow of funds, create a friendlier tax environment, increase the amount of players within the Argentine capital markets, and...