The Central Bank Introduces A Special Bank Account For Investment

Author:Mr Pablo Gayol
Profession:Marval O'Farrell & Mairal
 
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This banking account allows certain qualifying entities to open bank accounts for investment purposes with simpler requirements. It would also allow foreign residents to access the foreign exchange market without having to appoint an Argentine resident attorney in fact.

The Argentine Central Bank introduced a new bank account, the Special Bank Account for Investment (Cuenta Especial de Inversión, "Investment Account"),[i] which allows certain qualifying entities to open bank account for investment purposes with simpler requirements. This Investment Account would also allow the foreign resident to access the foreign exchange market without having to appoint an attorney in fact who is an Argentine resident.

  1. Entities qualifying to open the Investment Account

    The opening of an Investment Account is available to foreign and local investors. Foreign investors must have a financial activity, authorized, regulated and supervised in an adequate manner in anti-money-laundering matters in its jurisdiction of incorporation in accordance with the recommendations of the Financial Task Action Force (FATF/GAFI). The jurisdiction of incorporation cannot be one which is deemed "non-cooperative" or "high risk" by FATF/GAFI.

    The foreign investor must also be subject, in its jurisdiction of origin, to the supervision, authorization and/or control of the supervisory agencies both in anti-money laundering matters and in financial matters. These supervisory agencies must have a cooperation agreement or memorandum of understanding with either the Central Bank or the Argentine Securities Commission (Comisión Nacional de Valores or "CNV").

    The financial institution must apply the know-your-customer (KYC) regulations issued by the Financial Information Unit (Unidad de Información Financiera or "UIF").[ii]

  2. Authorized payments and collections

    The Investment Account can be used only to receive and make certain payments and collections expressly stated in the regulations. The Investment Account cannot have a negative balance.

    All debits in the Investment Account must be related to following concepts:

    purchase of private or governmental securities; purchase of Central Bank's instruments of monetary regulation; transfers between same-owner accounts; repatriation of funds; and account operating expenses (e.g.: commission and other costs). All the transfers from the Investment Account must be made electronically by one of the individuals authorized to...

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