FIU Resolution No. 194/2023 applicable to obligated subjects operating gambling activities.
Compliance & Investigations Department Report | FIU Resolution No. 194/2023 applicable to obligated subjects operating gambling activities.
Resolution No. 194/2023 of the Financial Information Unit (“FIU”), published in the Official Gazette on September 29th, 2023, replaces Resolution UIF No. 199/2018, applicable to obligated subjects operating gambling activities. The resolution aims to further the implementation of the Financial Action Task Force (“FATF”) Recommendations, particularly regarding the adoption of the Risk-Based Approach (“RBA”), while incorporating the results obtained from the National Risk Assessments for AML and CTF. It also introduces new nuances regarding the modality of Online Gaming. The norm itself defers its effective date until December 1st, 2023, to allow the affected entities time to become acquainted with it and adapt their procedures to the new regulatory requirements.
The main changes compared to FIU Resolution 199/2018 are as follows:
• Adoption of a regulatory model based on RBA.
• Mandatory conduct of a Self-Assessment of AML/FT Risks, which entails: (i) development and approval of a methodology, (ii) explicit declaration of the AML/FT risk appetite of the obligated subject; and (iii) Preparation of a Report with the results of the AML/FT Risk Self-Assessment to be submitted to FIU before April 30th, 2024. Additionally, the norm stipulates that the self-assessment must be repeated at least every two years.
• The mandatory requirement of having a Substitute Compliance Officer, who must meet the same conditions as the principal (in Res. 199/2011 it was optional to appoint a substitute CO).
• Differentiation between in-person clients (those who collect prizes exceeding 15 Minimum Monthly Wages (“MMW”)) and non-in-person clients, under the online modality, who must be fully identified at the outset of the business relationship (during onboarding on the platform).
• Obligation to implement an annual training plan on AML/FT matters, along with its scope and minimum content.
• Obligation to have the minimum essential information for the identification of directors, managers, employees, own and outsourced collaborators, partners, or ultimate beneficiaries of the entity, whether permanent or temporary, in order to verify their suitability and integrity.
• Obligation to periodically evaluate the AML/FT Prevention System in two ways: (i) Independent External Review (biennially) and (ii) inclusion of AML/FT matters in Internal Audit programs.
• Obligation to classify clients into at least three AML/FT risk levels (Low, Medium, and High).
• Three minimum levels of Due Diligence, each with an increasing threshold of information and documentation to be requested from the client: (i) Simplified (Low-Risk Clients), (ii) Regular (Medium-Risk Clients), and (iii) Enhanced (High-Risk Clients). Additionally, the registered client information must be renewed periodically (Continuous Due Diligence), based on the risk level assigned to each client.
• Special requirements for issuing “Prize Payment Certificates.”
• Monitoring, Analysis, and Reporting of Client Activity. The obligation is established to: (i) determine the transactional profile of each client, (ii) monitor their operations through automated systems, (iii) have alert signals in operation for potential unusual operations, (iv) keep a record of the analyzed unusual operations, and (v) report SARs to UIF.
• A new parameter is established for the Monthly Systematic Reports (RSM): prize collection exceeding 15 Minimum Monthly Wages per month.
Do not hesitate to contact us should you require any further information on this matter.
Sincerely,
Maximiliano N. D’Auro
Gustavo Papeschi
Rodrigo Allende