In a big win for civil society in Argentina, NPOs are no longer listed by the FIU as obliged entities meaning NPOs will now be exempt from the onerous compliance requirements as well as multiple registration and reporting obligations.

According to Art. 34 of the new law, the competent authorities must:

• Conduct a risk analysis of abuse of nonprofit organizations for terrorist financing;
• Establish appropriate and proportional measures to mitigate the risks identified,  promoting transparency, integrity and public trust in the management of non-profit organizations;
• Identify effective actions to mitigate the risks of terrorist financing of non-profit organization in collaboration with corresponding sectors.

This achievement comes after more than six long years of constructive dialogue and sustained commitment by representatives of Argentine NPOs, members of the Global NPO Coalition on FATF and competent authorities of the National AML/CFT Coordination Committee and the FIU.

The recently introduced revisions to the law represent a radical change in the approach to NPOs in Argentina - which is to be complemented by proportionate regulation - and the decision of the Argentinean authorities to make the necessary efforts to comply with the updated Recommendation 8.

For more information see here and here, or contact Gabriela Pellón (gabrielapellon@gmail.com)