LATIN AMERICA
Mobile Wages (MVMW). 1 • Customers in online gaming operations: any person who enters (registers on) the operator’s website. • Broadened scope of obligated entities. The scope of legal structures that can be considered as Obligated Entities is increased, now including Joint Ventures. • Obligated Entities must now identify AML/FT risks (the analysis must take into account at least customer, product, distribution channel, and geographical location risks). • The Resolution stipulates different KYC measures to be adopted based on the risk given to each player. The Resolution also requires KYC measures to be adopted in connection with directors, managers, employees and collaborators of the Obligated Entities (whether they are hired by the Obligated Entity or by a third party). • Obligated Entities must issue a Self-Assessment Report. This report shall be submitted before the UIF before April 30 of the corresponding calendar year or when there’s a change in the Obligated Entity’s risk level, and be updated every two years. The first submission of this document shall be submitted before April 30, 2026, and shall assess the operations of 2024 and 2025. • Obligated Entities shall issue a Risk Tolerance Declaration. This declaration shall be submitted before UIF with the Self-Assessment Report before April 30 of the corresponding calendar year or when there’s a change in the Obligated Entity’s risk level, and be updated every two years. The first submission of this document shall be submitted before April 30, 2026, and shall assess the operations of 2024 and 2025. • Obligated Entities must appoint an AML Compliance Officer and a Deputy AML Compliance Officer. • Obligated Entities must carry out an Internal Audit and an Independent External Review. The Independent External Review must be submitted before the UIF within 120 days from the date of submission of the Self-Assessment Report. The first deadline for this submission is before August 31, 2026, and shall assess the operations of the years 2024 and 2025.
• Obligated Entities must have an annual training plan to instruct their staff on the current regulatory rules on AML/CFT for all employees. The Resolution provides the minimum contents the training should cover. • Obligated Entities shall now comply with the Annual Systematic Report (“ASR”). The first ASR must be submitted between January 2 and March 15, 2025. The Resolution in detail The Resolution is structured into seven chapters addressing (i) its purpose and general definitions (articles 1 and 2); (ii) the AML/CFT system (articles 3 to 21), with a Part I related to risks (articles 4 to 7) and a Part II related to risk mitigation; (iii) due diligence measures (articles 22 to 34); (iv) monitoring, analysis, and reporting (articles 35 to 39); (v) information schemes (article 40); (vi) penalties (section 41); and (vii) temporary provisions (articles 42 to 44). In the following sections we describe those aspects that we consider relevant within each of these chapters of the Resolution, including some comments on the situation prior to
its enactment and the new scenario. Purpose and General Definitions
The key changes brought by the Resolution are, in our view, the switch to a risk based approach and the incorporation of online gambling into the AML/CFT regulations. It is also worth noting that the Resolution has brought to light the situation of contractual joint ventures under the AML/ CFT regulations. Under section 1442 of the Argentine Civil and Commercial Code, contractual joint ventures are not considered legal entities. Considering this, while Resolution (UIF) No. 199/2011 2 was in force, it was disputed whether contractual joint ventures should be treated as Obligated Entities or not. Under section 2(r) of the Resolution, contractual joint ventures are now regarded as Obligated Entities 3 . AML/CFT system: risks and risk mitigation The Resolution requires Obligated Entities to issue a risk
1 The value of the MVMW for the purpose of these thresholds are those determined for the month of June and December of each year. As of December 31, 2023, the threshold is ARS 2,340,000 (approximately $US2,869) 2 The AML/CFT regulations applicable to the gambling sector prior to the enactment of the Resolution 3 The question on the capacity of an administrative resolution to expand the scope of application of a law, as section 20(3) of Law 25,246 only refers to human and legal entities, remains. Notwithstanding this, it is now clear that the UIF will require contractual joint ventures to enroll as Obligated Entities
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IMGL MAGAZINE | JANUARY 2024
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