ARGENTINA Law and Practice Contributed by: Santiago J. Mora, Nicolas Garfunkel, Milagros Caneda and May Steward, GPG Advisory Partners
Many fintech companies offer unregulated prod - ucts and services in conjunction with regulated products. For example, Mercado Libre (an Argentine com - pany that hosts the largest online commerce and payments ecosystem in Latin America) operates simultaneously from a single entity as a PSPCP, a PNFC and a marketplace. Also, Mercado Libre offers its clients the possibility to invest in funds administrated by different companies. In addition, the BCRA has allowed financial institutions to participate in fintech companies and provide unregulated services through these companies. Notwithstanding the above, it is worth mention - ing that in May 2022 the BCRA prohibited finan - cial institutions from carrying out or facilitating their clients to carry out operations with crypto- assets, which was also extended to PSPCPs in May 2023, banning these companies from carry - ing out and facilitating crypto-asset transactions for their clients. It is expected that this ban will be lifted in the medium term. 2.14 Impact of AML and Sanctions Rules The reform of the AMLL that came into effect with the enactment of Law No 27,739 significantly impacted many fintech businesses, primarily by expanding the scope of reporting entities. Nota - bly, the new reporting requirements now apply to all functions of PSP, PSAVs, and PNFCs. Under the AMLL, these entities are required to fulfil several obligations, including registering with the UIF, identifying ultimate beneficial own - ers, demonstrating AML/CFT prevention proce - dures, appointing compliance officers, assess - ing the risk profile of each client, conducting due
diligence, investigating the origin of funds flow - ing through their platforms, etc. Regarding sanctions, the reform also introduced stricter penalties. The potential fines applicable in such proceedings have increased, and a new sanction allows for the disqualification of com - pliance officers in cases of non-compliance. 2.15 Financial Action Task Force Standards Argentina’s AML and sanctions framework fol - lows the standards imposed by the Financial Action Task Force (FATF). As a member of the FATF since 2000, Argentina aligns its regulations with the organisation’s recommendations. 2.16 Reverse Solicitation Argentina has not regulated reverse solicitation in general. However, CNV’s General Resolu - tion No 1016/2024 regulates a safe harbour in reverse solicitation for securities. 3. Robo-Advisers 3.1 Requirement for Different Business Models Robo-adviser services can vary, ranging from financial advice to the possible assumption and automated management of the client’s invest - ment portfolio based on their profile. Robo-advisers are subject to the same regula - tions applicable to agents (brokers and invest - ment managers) who are authorised to partici - pate in exchanges and markets under the CML and CNV regulations. Through its rules and general resolutions, the CNV regulates different figures that could use robo-advisers as an investment tool. Therefore,
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