Fintech companies are included as obligated entities before the UIF

As a consequence of the Financial Action Task Force’ arrival, the Congress enacted Law No. 27,739 (the “Law”), whose purpose is to introduce modifications to the existing legislation related to the prevention and repression of Money Laundering, Financing of Terrorism, and Financing of the Proliferation of Weapons of Mass Destruction.

To this end, the Law introduced modifications regarding the obligated entities to report to the Financial Information Unit (the “UIF” for Spanish acronym), who must act in accordance with the regulations issued by the mentioned entity, in order to comply with the reporting regimes and obligations detailed in the Law. In this regard, the obligated entities included in this modification are as follows: In this regard, the obligated entities included in this modification are as follows:

1. Money remittance companies. [1]
2. 2. Issuers, operators, and providers of collection and/or payment services. (PSPs (Payment Service Providers, Payment Initiation Service Providers, Payment Service Institutions, acquirers, acceptors, aggregators))
3. Non-financial credit providers.
4. Collective financing platforms.
5. Providers of virtual asset services.

[1] Although they are included in the Law as new obligated entities, in practice, they were already within the list of obligated entities of the UIF.