MercoPress. South Atlantic News Agency

Argentina under pressure to approve anti money-laundering legislation

Cabinet Chief Aníbal Fernández and Justice Minister Julio Alak

The Argentine administration of President Cristina Fernandez de Kirchner called Wednesday on the opposition lawmakers to pass an anti money laundering bill before June other wise Argentina could be black-listed for not having the proper controls.

The Financial Action Task Force made up of 34 countries including the US gave Argentina until next June to demonstrate its commitment to strengthen measures against money laundering and terrorism financing after the organization released a very critical report on the country last year.

Cabinet Chief Aníbal Fernández and Justice Minister Julio Alak asked the opposition blocs to debate the existent anti money laundering bill draft at the Congress, and the Judiciary to speed up all money laundering related investigations, during a joint press conference at the Government House.

“Cristina has asked us her willingness to get the bill draft passed so that Argentina does not become part of the countries that don’t cooperate in the global fight against money laundering.”

Alak also explained that in November 2010, the Executive branch echoed the requests made by the International Financial Action Task Force, and submitted anti money laundering bill draft so that Argentina could stay synchronized with the international requirements on regard such a delicate topic.

“It's indispensable that this bill be approved as Argentina is being examined like every other country in the world to see if it modernizes its legislation,” Justice Minister Julio Alak said in the televised press conference.

“It's not the executive branch that will be sanctioned if we don't pass this law, rather the nation of Argentina,” Alak warned.

Countries that fail to implement the FATF recommendations run the risk of being labelled as high risk, making it more difficult for them to conduct business with the economies of compliant nations.

The FATF report found 962 shortcomings in Argentina's financial system, saying the country was fully compliant with only three of FATF 49 recommendations. Responding to the report, the country's financial crimes agency, the UIF, issued at least 22 new regulations.

But the agency has only obtained one conviction for money laundering since its founding in 2000.

“It wasn't against a big drug trafficker or a major money laundering institution, rather a steak house owner in Cordoba province,” admitted Alak.