Argentina and its definition of PEP

The notion of politically exposed person — PEP — arises from cooperation between governments in international organizations such as the FATF. The fruits of this collaboration are reflected in the laws of each country, and this article specifically examines the case of Argentina.

Argentina, as happens in other Latin American countries like Venezuela, Uruguay, or Ecuador; also implements specific measures regarding the prevention of money laundering for individuals considered PEPs. The key regulatory instruments on this matter will be:

The Law No. 25,246 and
the Resolution 35/2023 from Argentina’s Financial Intelligence Unit — UIF —.

The Argentine law on money laundering prevention requires the application of “enhanced due diligence measures”, similar to the reinforced due diligence measures, for individuals who meet the condition of PEP. In the application of this regulation, it is also noted that the UIF will be responsible for “issuing directives and instructions that obligated parties must comply with and implement”. Through UIF instructions, Argentina outlines its regulatory framework concerning politically exposed persons, all through the Resolution 35/2023 which repeals the Resolution 134/2018.

In it, aside from the definition of PEP provided by the Latin American country, there are also obligations such as requiring a sworn statement. This declaration must be requested by the obligated party from their clients, informing whether they hold the status of PEP or not. Despite this obligation, the Resolution emphasizes that obligated parties “must adopt reasonable measures that allow them to verify, in all cases, the status of Politically Exposed Person of their clients”. This verification must be carried out at the moment of initiating the business relationship and during its course.

In addition to this, the Resolution states that “in all cases, rules for controlling operations and automated alerts must be implemented, so that it is possible to monitor, intensely and continuously, the execution of operations”.

List of PEPs in Argentina

Argentina divides its definition of PEP into 3 distinct sections:

Foreign PEPs
National PEPs
Other PEPs

In the category of foreign PEPs, the Argentine country lists a series of generic positions. Obligated parties may take these positions into account to determine what should be understood as a non-national PEP.

In the category of national PEPs, Argentina lists a series of public positions at all levels — national, provincial, and municipal — namely:

President or Vice President of the Nation.
National, provincial, municipal legislator or from the Autonomous City of Buenos Aires.
Governor, Vice Governor, Mayor, Deputy Mayor, Chief of Government or Deputy Chief of Government.
Chief of Cabinet of Ministers, Minister, Secretary, or Undersecretary of the National Executive Power, their equivalent in the provinces or the Autonomous City of Buenos Aires.
Personnel of the National Judiciary or the Public Ministry of the Nation, with a rank not lower than Secretary, their equivalent in the provinces or the Autonomous City of Buenos Aires.
Ombudsman of the Nation, their equivalent in the provinces or the Autonomous City of Buenos Aires and the deputies of the Ombudsman.
Federal intervenor, or collaborators of the same with a rank not lower than Director or its equivalent.
Personnel of the National Legislative Power, with a rank not lower than that of Director, their equivalent in the provinces or the Autonomous City of Buenos Aires.
General Syndic of the Nation or Deputy General Syndic of the General Syndicate of the Nation; President or General Auditor of the General Audit of the Nation; superior authority of a regulatory entity or other bodies that make up the control systems of the national public sector; members of jurisdictional administrative bodies or personnel of such bodies, with a rank not lower than that of Director or its equivalent.
Member of the Judicial Council of the Nation or the Jury of Impeachment, their equivalent in the provinces or the Autonomous City of Buenos Aires.
Ambassador or Consul.
Personnel of the Armed Forces, the Argentine Federal Police, the National Gendarmerie, the Argentine Naval Prefecture, the Federal Penitentiary Service, or the Airport Security Police with a rank not lower than that of Colonel or an equivalent rank according to the force, their equivalent in the provinces or the Autonomous City of Buenos Aires.
Rector, Dean or Secretary of National or provincial Universities.
Official or employee with a rank or function not lower than that of General or National Director, of the National Public Administration, centralized or decentralized, of self-governing entities, banks and financial institutions of the official system, of the social welfare organizations managed by the State, of state or provincial-owned companies and societies, and personnel with a similar rank or function, designated at the proposal of the State in mixed economy companies, publicly traded companies with majority state participation, or in other companies or entities of the public sector.
Official or public employee with decision-making power from a state agency in charge of granting administrative permits, licenses, or concessions for carrying out any activity; and controlling the functioning of such activities or exercising any other control by virtue of police power.
Public official of the public service control agencies, with a rank not lower than that of General Director, national, provincial, or from the Autonomous City of Buenos Aires.
Public official or employee with decision-making power who integrates committees for awarding tenders, purchasing or receiving goods and services, or who participates in decision-making regarding those tenders or purchases.
Public official responsible for administering public or private assets, or controlling or supervising public revenues of any kind.
Director or Administrator of any of the entities subject to external control of the Honorable Congress of the Nation, in accordance with the provisions of Article 120 of Law No. 24,156.

On the other hand, in the category of other PEPs, positions from political, union, and business organizations are included:

Authority, representative, candidate, or relevant member of political parties or electoral alliances, whether at the national or district level, in accordance with the provisions of Laws Nos. 23,298 and 26,215.
Authority of the governing and administrative bodies of union and business organizations (chambers, associations, and other forms of corporate grouping).
- Regarding union organizations, the scope includes individuals with decision-making, management, control, or disposition of the organization’s assets.
- Regarding business organizations, the scope includes individuals from the mentioned organizations who, by virtue of their position:
  1. Have decision-making, management, control, or disposition over funds from the national, provincial, municipal public sector, or the Autonomous City of Buenos Aires and/or,
  2. Carry out profit-making activities for the organization or its representatives, which involve the management, intermediation, or regular contracting with the national, provincial, municipal public sector or the Autonomous City of Buenos Aires.
Authority, legal representative, member of the administration board or the Executive Committee of the social welfare organizations covered by Law No. 23,660. The scope includes individuals from the mentioned organizations with decision-making, management, control, or disposition over their assets.
Individuals with decision-making, management, control, or disposition over the assets of private legal entities in the terms of Article 148 of the Civil and Commercial Code of the Nation, who receive public funds intended for third parties and have control and disposition power regarding the destination of such funds.

Below we detail the main sources we use at Pibisi to extract PEPs from Argentina:

List of PEPs in Argentina

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