ANTI–MONEY LAUNDERING CASE STUDY

Ever-changing regulation creates new challenges for risk, compliance, and legal officers at banks and broker dealers. However, one theme is constant. Whether in need of revenues to support welfare states or develop economies, nations chase people who are believed to be evading taxes. The illustration that follows concerning Argentina is one of many examples of the theme and the further discussion of “blue money” and United States v. Pasquantino highlights the potential pitfalls for those who knowingly assist tax evasion.

Eva Peron

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Argentina

Argentine nationals are subject to an income tax as well as a global holdings tax and, for a variety of reasons, many Argentineans maintain accounts outside of Argentina. In December 2008, Argentina declared a tax amnesty that does not require disclosure of the provenance of funds being repatriated from offshore holdings. This program was intended to help stimulate the Argentine economy.

In May 2009, the Banco Central de la República Argentina (BCRA) issued a new resolution that prohibited companies incorporated in, or individuals domiciled in, or a resident of, a blacklisted jurisdiction from trading in the Argentine securities market. Argentine nationals are also prohibited from transferring assets directly to a blacklisted jurisdiction. Jurisdictions blacklisted by Argentina are typically tax haven countries ...

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