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AML & Financial Services Regulatory

Argentina: Communication “A” 7901 – Modifications to the foreign exchange dealers regime

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In brief

On 30 November 2023, the Argentine Central Bank issued Communication “A” 7901 (“Communication“), which introduces amendments to the regime for foreign exchange dealers, including limits for the sale of foreign currency to entities authorized to operate in foreign exchange and to related customers, as well as new obligations for foreign exchange dealers.

In depth

The Communication states as follows:

  • As from 1 December 2023, the total amount of monthly foreign currency sales to entities authorized to operate in foreign exchange and to customers related to the foreign exchange operator —according to point 1.2.2. of the rules on “Large exposures to credit risk” (“Grandes exposiciones al riesgo de crédito”)— shall not exceed the total amount of foreign currency sales to the remaining customers recorded in the previous month.
  • Foreign exchange operators must (a) identify the shareholders that reach or exceed 25% of the capital stock or of the total votes of any instrument with voting rights and prove that they have an equity situation that evidences sufficient solvency and liquidity to comply with the contributions committed for the integration of the capital —if applicable— as well as to face the other obligations that correspond to them as shareholders in the future; and (b) designate a person responsible for compliance with the foreign exchange regulations by providing their personal information.

This obligation must be complied with by having specific documentation accredited through a Registry of Exchange Operators (ROC) application. Exchange operators that are already registered must comply with the provisions within 30 days as from the date on which the ROC application is updated.

The Communication entered into force on 30 November 2023.

Click here to read the Spanish version.

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Author

Gabriel Gomez-Giglio is partner at Baker McKenzie’s Buenos Aires office, chair of the Latin America Banking & Finance Practice of Baker McKenzie and a member of the Global Steering Committee of the Firm’s Financial Institutions Industry Group. He advises clients on a variety of general commercial issues. His practice focuses on the areas of transactional and regulatory matters, including but not limited to multinational financial transactions, commercial agreements and mergers and acquisitions. Gabriel is a member of the Board and Adjunct Professor of Law at Universidad Torcuato Di Tella and a visiting professor with the Centre for Commercial Law Studies, Queen Mary College, University of London.

Author

Francisco José Fernández Rostello is a partner and member of the Firm’s Banking & Finance Practice Group in Buenos Aires. He has worked for the International Swaps and Derivatives Association and for Société Générale, New York Branch. He is knowledgeable on matters related to issuance of debt, derivatives transactions, local and cross-border financing, and securities transactions.

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Juana Allende is an Associate in Baker McKenzie, Buenos Aires office.

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Jeronimo Argonz is an Associate in Baker McKenzie, Buenos Aires office.

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