The Financial Information Unit established a "know your client" practice for foreign and local investors who wish to request the opening of special investment accounts in the Republic of Argentina, specifically aimed at financial investments.
The Argentine Financial Information Unit ("UIF"), through Resolution No. 4/2017 ("Resolution"), abandons the criteria adopted by Resolutions Nos. 121/2011 and 229/2011, and establishes that, in order to determine the Customer Profile ("Customer Profile") and to comply with due diligence, the reporting entities may apply a simplified regime for local and foreign investors who wish to request the opening of special long distance investment accounts.
In that regard, the UIF stated that the following may apply special identification due diligence measures in order to create the Customer Profile ("Simplified Due Diligence"): financial entities subject to the regime under Law No. 21,526 (and amendments thereto); agents and stock broker companies; companies managing mutual funds; agents trading over-the-counter; every such intermediary in the purchase, lease or loan of securities in the stock exchange market with or without listed markets; and intermediary agents listed in futures and option markets (under subsections 1, 4 and 5 of Section 20 of Law No. 25,246) (jointly, "Reporting Entities").
The Reporting Entities must comply with a series of requirements in order to perform a Simplified Due Diligence about foreign and local investors (such as having the documents that prove such capacity; documents from specific controlling, supervision and authorization agencies, as appropriate; tax identification, etc.). Such Simplified Due Diligence does not exempt the Reporting Entities from monitoring investors during the time of the commercial relationship.
Regarding the opening of special investment accounts requested by liquidation and compensation agents ("LCA"), the Reporting Entities must comply with the current regulations when they have performed the due diligence over said LCA. Moreover, the LCA is responsible for the due diligence of their clients.
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