On June 16, 2017, the Argentine Financial Information Unit (FIU) issued Resolution 30-E/2017 (the "Resolution") establishing the rules to be adopted and applied by certain entities when managing risks associated with Money Laundering and Financing of Terrorism (ML/FT).
This Resolution, which replaces FIU resolution No. 121/2011, is aimed at financial entities and foreign currency exchange offices. Under this Resolution, these entities must categorize their clients by low, medium and high risk; in accordance with the level of risk of their clients, products and services, distribution channels and geographic area.
In addition, these entities must implement a System to Prevent Money Laundering and Financing of Terrorism which must include the policies, procedures and controls for identifying, assessing, mitigating and monitoring the entities' risks of ML/FT.
This Resolution also introduces the mitigation of risks. In this sense, the Resolution establishes that...