JANUARY 10, 2024

Financial Information Unit (UIF) – New Resolutions 1/2023 and 2/2023 applicable to obligated entities in the funds remittance and cash transport sectors


Compliance & Investigations Department Report | Financial Information Unit (UIF) – New Resolutions 1/2023 and 2/2023 applicable to obligated entities in the funds remittance and cash transport sectors

On January 8, 2024, Resolution No. 1/2023 from the Financial Information Unit (“UIF”) was published in the Official Gazette, replacing UIF Resolutions No. 23/2011 and 66/2012 applicable to obligated entities and postal services conducting fund transfers within and outside the national territory. Simultaneously, Resolution No. 2/2023 replaces UIF Resolution No. 24/2011 for obligated entities involved in cash transport.

Both resolutions, in a similar spirit, deepen the implementation of the recommendations of the Financial Action Task Force (“FATF”), particularly focusing on adopting the Risk-Based Approach (“RBA”). They also incorporate outcomes from the National Risk Assessments of Money Laundering (ML) and Terrorist Financing (TF) to enhance efforts in combating these crimes. The effective date of these regulations is deferred until March 1, 2024, providing entities with time to familiarize themselves and adapt their procedures to the new regulatory requirements.

The main changes compared to previous resolutions include the adoption of an RBA regulatory model, the mandatory implementation of an Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Risk Self-Assessment. This involves developing and approving a methodology, an explicit statement of the AML/CTF risk tolerance of the obligated entity, and the preparation of a Technical Report with the results of the AML/CTF Risk Self-Assessment to be submitted to the UIF. Resolution 1/2023 (applicable to fund transfer services and postal services) stipulates that the self-assessment must be updated every two years and cover biennial periods. The first report must be submitted to the UIF before August 31, 2026. In the case of Resolution UIF 2/2023 (cash transport), it is specified that the self-assessment must be annual, covering one-year periods, and the first technical report must be submitted to the UIF by August 31, 2025.

Other significant changes include the obligation to have a Deputy Compliance Officer who meets the same conditions as the principal officer, the requirement to conduct an annual AML/CTF training program, the obligation to periodically evaluate the AML/CTF Prevention System through both External Independent Review and the inclusion of AML/CTF matters in Internal Audit programs.

Moreover, there is an obligation to classify clients into at least three levels of AML/CTF risk (Low, Medium, and High) and to conduct Due Diligence at three minimum levels, each with an increasing threshold of information and documentation required from the client: Simplified (Low-Risk Clients), Regular (Medium-Risk Clients), and Enhanced (High-Risk Clients). Additionally, client information must be periodically renewed (Continuous Due Diligence) based on the assigned risk level.

The resolutions also introduce requirements for monitoring, analyzing, and reporting on client activity. This includes determining the transactional profile of each client, monitoring their operations through automated systems, activating alerts for potential unusual operations, maintaining a record of analyzed unusual transactions, and reporting them to the UIF.

The obligated entities covered by these resolutions must submit the first systematic annual report between January 2 and March 15, 2025, containing the requested information for the year 2024.

Do not hesitate to contact us if you require any further information on this matter.

Maximiliano N. D’Auro
Gustavo Papeschi
Rodrigo Allende