Through a new resolution (Resolution 375, August 17, 2016), the
Secretary for the Prevention of Money Laundering (Secretaría
de Prevención de Lavado de Dinero, or "SEPRELAD")
modified the procedure and information requirements for subjects
that are obligated to register with SEPRELAD but are not regulated
by a specific government entity, such as the Central Bank or
National Stock Commission ("Non-regulated Subjects").
Non-regulated Subjects include (1) national and international
non-profit organizations; (2) real estate agents; (3) pawn shops;
(4) jewel, metal and precious stones merchants; (5) coin and stamp
collectors; (6) art dealers; (7) importers and sellers of motor
vehicles; (8) providers of safe deposit boxes; (9) cash transport
service providers; and (10) money transfer service providers.
The new procedure extends the time period to present the
documents necessary to register from 5 to 10 days, and creates a
registry certificate that SEPRELAD issues upon the conclusion of
Under the new procedure, Non-regulated Subjects must first
register through the online system. Then, during the next 10 days,
they must present to SEPRELAD all documentation required to support
the online application. This documentation includes: (1) corporate
bylaws (for entities) or national identification card or passport
(for individuals); (2) tax registration; (3) record of the last
appointment of authorities; (4) commercial license issued by the
relevant municipal authority; and (5) a sworn declaration regarding
the financial intermediaries with which it does business.
SEPRELAD is a governmental entity that pertains to the Executive
branch. It is responsible for enforcing compliance with anti-money
laundering norms and has the authority to initiate and conduct
investigations into potential violations, and refer cases to the
State Prosecutor. Noncompliance with anti-money laundering norms
may result in administrative warnings or fines, and may constitute
grounds for the initiation of an investigation.
Abbreviated KYC procedure for certain natural person securities
Through a new resolution (Resolution 427, September 21, 2016),
the Secretary for the Prevention of Money Laundering
(Secretaría de Prevención de Lavado de Dinero, or
"SEPRELAD") authorized an abbreviated Know-Your-Customer
("KYC") procedure for regulated operators in the stock
market, principally brokers operating in Asuncion's Stock
Exchange, Paraguay's only stock exchange, with regard to
natural persons that wish to invest on their own behalf for annual
amounts of up to approximately USD 2,000. In such cases, the
operator must only require the completion of an identification form
and attach a copy of the person's identification
Outside of the abbreviated procedure, SEPRELAD's KYC norms
require operators to take reasonable measures to (1) obtain and
preserve all information that reflects a natural person's
("Client") true identity and that of those acting on the
Client's behalf; (2) verify the purpose and nature of the
commercial relationship that the Client seeks; (3) implement
controls that permit monitoring of the operations made by the
Client during the course of the commercial relationship; and (4)
implement procedures to maintain the person's registration
up-to-date. To comply with these requirements, apart from the
person's identity documents, operators generally must ask the
Client for: (1) banking, commercial and personal references; (2) a
sworn statement of assets identifying the person's business and
main activities, with supporting documentation, such as job
certificates; and (3) other documents that may be required by the
operator's current policies. In addition, the operator must
make regular inquiries with the Client in order to keep this
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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In December 2001 and after over ten years of economic deregulation, the Central Bank of the Republic of Argentina imposed very tight exchange controls. As from the end of the year 2002, the Central Bank has gradually loosened...
Externalization shall include foreign currency holdings in Argentina and abroad as of April 30, 2013.
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