Cassagne | Money Laundering after the Enactment of Law 27.739: Its Evolution and Typification in Criminal Law

Miguel Cassagne

April 4, 2025

1. Introduction

Asset laundering is a crime that takes on transnational characteristics, often manifesting as part of transnational organized crime. This has led to widespread concern within the international community, which has responded by producing normative standards aimed at global legal harmonization and a systematic, united fight against this practice. Asset laundering threatens the stability and credibility of a country's financial sector and, by extension, the global financial system, impacting the normal development of life and business in the jurisdictions where it is perpetrated or has effects.

Our country is not immune to the influence of the international treatment of asset laundering, which has evolved over the years. This influence has impacted the local configuration of the criminal offense at different historical moments.

2. Evolution of its Treatment in Argentine Penal Legislation

Reviewing the evolution of the criminal offense of asset laundering in our internal legal framework (especially in its penal aspect) will reveal how this evolution has been aligned with the political will to update and adjust to international standards set and updated in international conventions and recommendations issued by the Financial Action Task Force (FATF), an interjurisdictional group created at the initiative of the G7 in Paris in 1989, of which Argentina has been a full member since 2000.

First Stage: Law 23.737 (1989) - Article 25

The first incorporation of this topic was made through the enactment of Law No. 23.737 in 1989, a law that responded to and was consistent with a recommendation previously formulated in the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances held in Vienna the previous year (1988).

In this regard, the aforementioned Convention provides in Article 3, paragraph b), that each party should adopt the necessary measures to criminalize in its domestic law the conversion or transfer of property, knowing that such property is derived from drug trafficking, with the aim of concealing or disguising the illicit origin of the property or assisting any person involved in the commission of such crimes to evade the legal consequences of their actions. That is, until that time, crimes unrelated to drug trafficking, such as tax evasion, fraud, kidnapping, and theft, were not classified as asset laundering offenses under the Vienna Convention.

In line with the agreement reached in that Convention, Law 23.737, in its Article 25, established that:

Article 25. ? Shall be punished with imprisonment of two to ten years and a fine of six thousand to five hundred thousand australes, anyone who, without having participated or cooperated in the execution of the acts provided for in this law, intervenes in the investment, sale, pledge, transfer, or assignment of the proceeds, things, or property derived from those acts, or the economic benefit obtained from the crime, provided that they knew or suspected that origin._** _The same penalty shall apply to anyone who purchases, stores, hides, or receives such proceeds, things, property, or benefits, knowing their origin or having suspected it._ _For the purposes of this article, it shall not matter whether the act generating the proceeds, things, property, or benefits occurred in a foreign territory.?

The crime was defined as the action of anyone who, without having participated in the preceding crime of illegal drug trafficking ("acts provided for in this law"), intervened in the investment, sale, transfer, or assignment of the proceeds, things, or property derived from it, or the economic benefit obtained from the crime, provided that they knew or suspected that origin.

The penal description was characterized?and differs from what would happen in subsequent legislative reforms?by:

(1) The limitation of considering only illegal drug trafficking as the necessary preceding crime to configure the offense (of concealment);

(2) The requirement that the perpetrator know the illicit origin of the funds in which they participated for investment, sale, etc., or suspect it;

(3) The limitation on the possible perpetrator of the crime, restricting it to anyone who was not part of the preceding crime (self-concealment was prohibited); and

(4) The fact that the purpose was not to give the appearance of legality to property obtained illicitly (nor was it mentioned in the text of the article describing the crime), but rather to participate in the described actions with property derived from the crime of illegal drug trafficking without reporting it.

Second Stage: Law 25.246 (Official Gazette 10/05/2000) ? Incorporates Article 278 of the Penal Code.

The penal treatment of concealment, as previously described, was later modified in 2000, again not as a result of internal Argentine legal issues, but as a way to adapt to new forms of treatment agreed upon in international conventions.

Indeed, the international community, after the Vienna Convention, evolved towards an approach where crimes classified as asset laundering should go beyond drug trafficking offenses. As a result, in the FATF Recommendations and other international instruments, the definition of the underlying crime adapted in Vienna was expanded to include other serious crimes.

This was reflected in the Palermo Convention of 2000, which required all participating countries to consider "the widest range of predicate offenses" as part of the underlying crimes.

For its part, in its 40 Recommendations, the FATF specifically included the definitions of asset laundering presented in the Vienna and Palermo Conventions and listed a series of categories of crimes that should be considered as predicate offenses for asset laundering, stating that in deciding on the range of crimes to be covered as predicate offenses, each country could decide?in accordance with its internal legal systems?how to define these crimes.

Again, Argentina, driven by the purpose of complying with and adapting to the modalities agreed upon in the United Nations Convention against Transnational Organized Crime, approved in Palermo (Italy) in 2000, and the aforementioned FATF Recommendations, due to the fact that the country became a full member of the FATF in that year, promoted and enacted Law No. 25.246 (the constitutive framework of Argentina's current Anti-Money Laundering System), through which, among other aspects, the crime of money laundering was incorporated into the Argentine Penal Code for the first time.

Through the enactment of the aforementioned law, the offense of asset laundering was restructured and typified in the new Article 278 of the Penal Code, located within Title XI of "Crimes against Public Administration," rendering the previous scheme ineffective.

The new treatment, while maintaining asset laundering as an aggravated form of concealment, would admit as predicate offenses not only illegal drug trafficking but any crime in the penal system.

In this sense, the aforementioned Article 278 of the Argentine Penal Code stated in its text that: ??a) Shall be punished with imprisonment of two to ten years and a fine of two to ten times the amount of the operation anyone who converts, transfers, administers, sells, encumbers, or otherwise applies money or other property derived from a crime in which they did not participate, with the possible consequence that the original property or its substitutes acquire the appearance of a licit origin, provided that its value exceeds the sum of fifty thousand pesos ($50,000), whether in a single act or through the repetition of various linked acts; b) The minimum penalty shall be five (5) years of imprisonment when the perpetrator commits the act habitually or as a member of an association or gang formed for the continued commission of acts of this nature; c) If the value of the property does not exceed the sum indicated in this paragraph, letter a, the perpetrator shall be punished, as the case may be, in accordance with the rules of Article 277.?

Although the new text introduced (as underlined) the current definition of what we understand as asset laundering (previously omitted)?referring to the action of giving the appearance of legality to property of illicit origin?it still maintained the treatment of laundering as a form of concealment and the exclusion of the perpetrator of the predicate offense as the active subject of the crime?as a privilege of self-concealment.

Third Stage: Law 26.683 (June 2011). Asset Laundering as an Autonomous Offense

As could not be otherwise, the context of this stage is also marked by the international context, particularly by the low rating obtained by Argentina in the 3rd Round of Mutual Evaluations conducted by the FATF, a circumstance that led the country to enter the FATF's Grey List in October of that year.

As a result, starting in 2010, Argentina, in its commitment to try to resolve the deficiencies found in its Anti-Money Laundering and Counter-Terrorism Financing System, began a task of purging and perfecting said system, which involved, among other aspects, further adapting its internal legislation to what emerged from the FATF Recommendations.

It is in this context, and for this purpose, that among other measures taken, Law No. 26.683 was promoted and enacted in June 2011, through which the typical treatment of asset laundering was modified, ceasing to be treated as concealment (repealing the old Article 278 of the Penal Code) and instead considering it as an autonomous crime defined in the terms of Article 303 of the Argentine Penal Code, introduced through the aforementioned law?and in force until its modification by Law 27.739.

For 13 years, and until its modification in March 2024 (as will be seen later), the aforementioned Article 303 established:

?Article 303:...1) Shall be punished with imprisonment of three (3) to ten (10) years and a fine of two (2) to ten (10) times the amount of the operation, anyone who converts, transfers, administers, sells, encumbers, disguises, or otherwise puts into circulation in the market, property derived from a criminal offense, with the possible consequence that the origin of the original property or its substitutes acquires the appearance of a licit origin, provided that its value exceeds the sum of three hundred thousand pesos ($300,000), whether in a single act or through the repetition of various linked acts. 2) The penalty provided in paragraph 1 shall be increased by one-third of the maximum and one-half of the minimum in the following cases: a) When the perpetrator commits the act habitually or as a member of an association or gang formed for the continued commission of acts of this nature; b) When the perpetrator is a public official who committed the act in the exercise or on the occasion of their functions. In this case, they shall also suffer the penalty of special disqualification for three (3) to ten (10) years. The same penalty shall apply to anyone who acted in the exercise of a profession or trade requiring special authorization. 3) Anyone who receives money or other property derived from a criminal offense, with the purpose of applying it in an operation as provided in paragraph 1, giving it the possible appearance of a licit origin, shall be punished with imprisonment of six (6) months to three (3) years. 4) If the value of the property does not exceed the sum indicated in paragraph 1, the perpetrator shall be punished with imprisonment of six (6) months to three (3) years. 5) The provisions of this article shall apply even if the predicate criminal offense was committed outside the territorial scope of application of this Code, provided that the act that typifies it was also punishable by a penalty in the place of its commission.?

Fourth Stage: Law 27.739 (March 2024). Asset Laundering Continues to be Considered an Autonomous Offense but with Partial Modifications to its Wording to Adjust to FATF Recommendations

Under penalty of being considered repetitive, this new change introduced to the criminal offense of asset laundering is limited to and is a direct consequence of the country's interest in adjusting its penal legislation and its preventive system against asset laundering to the FATF Recommendations, in order to avoid a low rating in the 4th Round of Mutual Evaluations that Argentina underwent in 2024, thus avoiding entering the so-called "Grey List" of the aforementioned international body.

In this regard, the new Article 303 of the Argentine Penal Code currently in force establishes:

?ARTICLE 303:1. Shall be punished with imprisonment of three (3) to ten (10) years and a fine of two (2) to ten (10) times the amount of the operation, anyone who converts, transfers, administers, sells, encumbers, acquires, disguises, or otherwise puts into circulation in the market, property or other assets derived from a criminal offense, with the possible consequence that the origin of the original property or its substitutes acquires the appearance of a licit origin, provided that its value exceeds the sum of one hundred and fifty (150) Minimum, Vital, and Mobile Wages at the time of the acts, whether in a single act or through the repetition of various linked acts. 2. The penalty provided in paragraph 1) shall be increased by one-third of the maximum and one-half of the minimum in the following cases: a) When the perpetrator commits the act habitually or as a member of an association or gang formed for the continued commission of acts of this nature; b) When the perpetrator is a public official who committed the act in the exercise or on the occasion of their functions. In this case, they shall also suffer the penalty of special disqualification for three (3) to ten (10) years. The same penalty shall apply to anyone who acted in the exercise of a profession or trade requiring special authorization. 3. Anyone who receives property or other assets derived from a criminal offense, with the purpose of applying it in an operation as provided in paragraph 1), giving it the possible appearance of a licit origin, shall be punished with imprisonment of six (6) months to three (3) years. 4. If the value of the property does not exceed the sum indicated in paragraph 1), the perpetrator shall be punished with a fine of five (5) to twenty (20) times the amount of the operation. 5. The provisions of this article shall apply even if the predicate criminal offense was committed outside the territorial scope of application of this Code, provided that the act that typifies it was also punishable by a penalty in the place of its commission.?

In this sense, the changes introduced by Article 2 of Law 27.739, regarding the previous version of Article 303, are limited to aspects related to: (a) The expansion of punishable conduct (adding the term "acquire" to the list of such conduct); (b) The expansion of the terminology used, including "other assets" (in addition to the term "property"?previously the only term used?to describe those on which the punishable action or conduct falls); (c) The updating of the economic threshold that serves as a limit to determine the mitigating factor of the penalty; (d) The establishment of said threshold not in a fixed and determined manner but in a determinable and updatable manner to avoid its obsolescence over time; and (e) The modification of the penalties set for cases where mitigating factors exist.

In this version, as in the previous one before the enactment of Law 27.739, the extraterritorial scope of application is maintained, establishing that the provisions of the article apply even if the predicate offense was committed outside Argentine territory, provided that said criminal act is also punishable in the place of its commission.

In general, beyond explaining in detail the current figure of Asset Laundering in the following chapter, these modifications seek to strengthen the legal framework against asset laundering, adapting to international recommendations and new criminal modalities, such as the use of digital assets. Additionally, by adjusting the economic threshold to the Minimum, Vital, and Mobile Wage, an automatic update was ensured to reflect current economic conditions at all times.

3. Current Treatment of Asset Laundering in our Criminal Code

3.1. Brief Description of the Crime of Asset Laundering in the Terms Established in the Current Article 303 of the Argentine Penal Code.

Based on the new text of Article 303 transcribed in the previous chapter, we will review in greater detail the various aspects that make up the criminal offense contained therein:

What is the protected legal interest?

The answer to this is found in Title XIII itself, incorporated into Book II of the Penal Code by Law 26.683 (Official Gazette 21/06/2011), within which Article 303 in its current version is located. The aforementioned Title refers to "Crimes against the Economic and Financial Order." That is, the incorporation of this crime is an attempt to preserve a supraindividual or collective legal interest, whose violation operates to the detriment of the stability, security, and development of the formally instituted economic-financial system.

How is the Crime of Asset Laundering Typified in the Current Article 303 of the Penal Code (after the Changes Introduced by Law 27.739)?

As the action of anyone ??who converts, transfers, administers, sells, encumbers, acquires, disguises, or otherwise puts into circulation in the market, property derived from a criminal offense, with the possible consequence that the origin of the original property or its substitutes acquires the appearance of a licit origin, provided that its value exceeds the sum of one hundred and fifty (150) Minimum, Vital, and Mobile Wages at the time of the acts, whether in a single act or through the repetition of various linked acts.?

From the aforementioned description, it is observed that:

(a) Regarding the subject who commits the crime, both this updated version of Article 303 and the previous one before the reform introduced by Law 27.739, unlike the treatment given in the repealed Article 278 of the Penal Code (where those who had participated in the predicate offense were excluded, as an expression of the privilege of self-concealment), no longer require any qualification in the active subject, so any person can commit the crime, whether or not they participated in the predicate offense (self-laundering is allowed).

(b) The configuration of the crime occurs with the action of transforming property/assets derived from a criminal offense and giving it a licit appearance through the performance of the acts described in Article 303, within which the reform of Law 27.739 incorporates the action of "acquiring," that is, now explicitly including the action of obtaining property of illicit origin as punishable conduct.

(c) The object of transformation would fall, according to the old Article 303 of the Penal Code, on any of the "property derived from a criminal offense" (whether the original property or the substitutes derived from the former). Beyond the fact that in the old wording, the doctrine understood "property" to mean assets of any kind, with the reform introduced by Law 27.739, the new text of Article 303, seeking to eliminate ambiguities regarding what constitutes "property," aligning with international standards and considering intangible assets such as cryptocurrencies, expressly mentions that the object of transformation falls on "property or other assets," encompassing a broader range of elements susceptible to being the object of the crime.

(d) In its current version of Article 303 (as in the previous version), the crime must be intentional, since the perpetrator must know the illicit origin of the property and have the purpose of giving said illicit property the appearance of legality.

(e) The crime is consummatedonly when the actions mentioned in the current Article 303 are carried out on the property or other assets of illicit origin with sufficient aptitude to produce the result of giving them the appearance of legality. Therefore, being result-oriented actions, the crime admits attempt (unlike the crime of terrorism financing, which does not admit attempt?it is a crime of terrorism financing whether or not the terrorist organization the perpetrator intended to finance could be financed).

(f) Regarding the penalty, in the new version of Article 303, the penalty of imprisonment from 3 to 10 years and a fine of 2 to 10 times the amount of the operation is maintained, admitting, as in the previous version, both aggravating and mitigating factors.

- The aggravating factor would be configured in the case that the crime is committed habitually, as a member of an illicit association, and/or by a public official (in which case the penalty will be increased by one-third of the maximum and one-half of the minimum, in addition to the penalty of special disqualification for three (3) to ten (10) years for public officials or those who acted in the exercise of a profession or trade requiring special authorization).

- The mitigating factor would apply, according to the new wording of Article 303 (under Law 27.739), in the case that the amount of the property (and now also other assets) that are the object of the criminal action is less than (no longer the sum of $300,000) but the sum equivalent to multiplying by 150 the Minimum, Vital, and Mobile Wage set by the National Council for Employment, Productivity, and Wages (composed of representatives of workers, employers, the National State, and the Federal Labor Council) and in force at the time the criminal action is carried out.

In its previous version, Article 303, for cases of mitigating factors, set a reduced penalty, equating it to the penalty set for the crime of concealment, that is, imprisonment from 6 months to 3 years. After Law 27.739, for these cases of mitigating factors, the reduced custodial penalty was modified to a fine of five to twenty times the amount of the operation, reserving the custodial penalty now for more serious crimes.

The mitigating factor of the penalty imposed for the crime of asset laundering is based on the protected legal interest, understanding the legislator who intervened in the treatment of Law 27.739 (as did the legislator who enacted Law 26.683 in 2011) that any criminal action that constitutes the crime of asset laundering exceeding 150 Minimum, Vital, and Mobile Wages would affect the protected legal interest related to the economic and financial order, while the commission of the crime for amounts less than that figure would not deserve the original penalty, considering that the economic order would not be affected?due to its small amount?beyond continuing to be a criminal and punishable action (and therefore subject to mitigation).

3.2. Other Important Aspects Related to the Penal Treatment of Asset Laundering

Beyond the treatment given to asset laundering in terms of its criminal typification and the elements that make up the criminal action previously mentioned, it should be noted that, currently, two very important institutions introduced in the 2011 reform through Law No. 26.683 continue to be maintained, referring to Criminal Liability in the sphere of activity of Legal Entities and the Regime of Asset Forfeiture.

Indeed, the incorporation of Articles 304(1) and 305(2) into the Argentine Penal Code, made in June 2011 through the enactment of the aforementioned law, reinforced the legal framework against asset laundering, specifically addressing the responsibility of legal entities and establishing precautionary measures and forfeiture, a fact that has remained unchanged to date.

Article 304: Liability of Legal Entities

This article establishes sanctions for legal entities that participate in asset laundering crimes, whether in their name, with their intervention, or for their benefit. The sanctions include fines, suspension of activities, disqualification from participating in public tenders, cancellation of legal personality, loss of state benefits, and publication of the conviction sentence.

The graduation of these sanctions considers factors such as non-compliance with internal procedures, lack of supervision over the perpetrators of the crime, the magnitude of the damage caused, and the economic capacity of the entity.

Specialized doctrine has pointed out that the inclusion of this article sought to comply with FATF international standards that require criminal liability of legal entities in economic and financial crimes. On the other hand, this measure seeks to deter companies from engaging in illicit activities and ensure that they implement effective internal controls to prevent asset laundering.

Article 305: Precautionary Measures and Forfeiture

This article empowers judges to adopt precautionary measures from the beginning of investigations to ensure the custody, administration, and conservation of property related to asset laundering crimes.

In addition, it provides for the definitive forfeiture of said property without the need for a criminal conviction when the illicit origin is proven and the accused cannot be tried due to reasons such as death, flight, or prescription. The forfeited property is destined to repair the damage caused to society, victims, or the State.

It should be noted that this provision sought to strengthen the State's ability to recover assets of illicit origin, even in the absence of a criminal conviction, aligning with FATF international recommendations in the fight against money laundering. This provision also seeks to prevent criminals from benefiting from the fruits of illicit activities and ensures that recovered resources are used to repair the damages caused.

In summary, the incorporation in 2011 of Articles 304 and 305 into the Argentine Penal Code through the enactment of Law 26.683 responded to the need to adapt national legislation to international standards in the fight against asset laundering, strengthening the responsibility of legal entities and establishing effective mechanisms for the forfeiture and administration of assets of illicit origin.

4. Asset Laundering as a Process. What are its Stages?

Beyond the analysis of the criminal offense in the new Article 303 of the Penal Code (according to the version modified by Law 27.739), asset laundering requires a whole "process" that the launderer must go through and carry out to enjoy the proceeds of the crimes, without leaving traces as to their origin, reducing the risks of being discovered.

Like any process, it is divided into stages. In general, when explaining the laundering process, and for didactic purposes, it is considered that the laundering process is composed of the following three stages, although they may or may not occur in a particular case:

- The **Placement Stage**, considered the initial stage of the process through which the launderer introduces the assets derived from the crime into the financial system (legal financial circuit), generally?although not exclusively?through a financial institution.

- The **Layering Stage**, or second stage, in which the assets already entered into the financial system are further separated from their illicit origin through multiple transactions, in order to make their tracing more difficult. As in the previous case, layering can take different forms of action.

- The **Integration Stage**, or final stage of the process, which occurs when the now "clean" funds are reintroduced into the economy as legitimate income or investments.

These three stages can also be observed in the schemes of the crime of Terrorism Financing, with the caveat that in this crime, the first stage of placement may involve the use of money or property obtained both legally and illegally, and in the third stage of integration, it will consist of the distribution of funds to terrorists and the organizations that support them.

Asset laundering can occur in any country in the world and may even involve several countries in a single "laundering" action, depending on where one of the aforementioned stages is carried out. Generally, launderers choose to perpetrate this type of crime in jurisdictions or with financial systems that are complex, with lax, ineffective, or corrupt preventive systems.

5. Some of the Harmful Effects Produced by Asset Laundering

Asset laundering is a complex crime that, at first glance, seems not to be taken very seriously by the general public, under the mistaken belief that, compared to other common crimes, it is relatively new. It is often referred to as a victimless crime, as the harm to a specific individual is not immediately visible.

However, when the crime is configured, the victims are much more numerous than in any other crime, as it is a crime against society as a whole, against economies, and the Rule of Law (recalling what was previously stated in the sense that in our Penal Code, it is considered a crime against the economic and financial order).

Asset laundering threatens the stability of economies and national security in any jurisdiction in the world, including Argentina. These illegal practices not only impact the financial system but also generate harmful consequences that affect various aspects of society. From financial corruption to economic inequality and the erosion of trust, unfair competition, and markets. These pernicious effects create an adverse environment for the growth and prosperity of the country, while also increasing crime, as criminal organizations tend to settle in jurisdictions where (due to lax repressive and preventive systems for this crime) they are allowed to use and launder the proceeds of their criminal businesses.

In this sense, when each asset laundering crime is committed, criminals are allowed to maintain control over their source of resources and are provided with legitimate cover for their source of income. When the latter happens, crime becomes more attractive, thus fostering, as we said before, the increase in organized crime.

Therefore, not detecting or combating this crime is a way of promoting the criminal's business, which is crime, because nothing affects their profits. It is promoting those crimes that affect millions of people, such as drug consumption, human trafficking, slavery, sexual exploitation of children and adults, organ trafficking, crimes, extortion, kidnappings, fraud, etc.

As indicated earlier, the crime of Asset Laundering undermines the integrity of the financial system, as in countries with small economies and small financial systems, illicit money deposited in financial institutions could later be unexpectedly withdrawn in response to factors unrelated to market issues or the normal course of business, but, for example, to the implementation of greater state controls, and this could lead to liquidity problems or even bank runs.

Ultimately, asset laundering negatively affects the country in terms of investment and sustainable growth, attracts international criminal organizations, and hinders the recovery of damaged reputation.

Studies in the field have indicated that launderers charge between 10% and 15% of the sums involved, with the "price" of laundering varying and depending on the effectiveness of a country's anti-money laundering regulation, so that the more effective the regulation, the more expensive it will be for criminals to "whiten" their illicit resources.

6. Statistical Data on Asset Laundering Worldwide and in Argentina

Although, due to its very nature, asset laundering is intended to be secret, as criminals do not record their operations, nor publish their profits, and often use several countries to hide their assets, taking advantage of the differences in the various preventive regimes, it is very difficult to have precise global estimates on the amount of assets laundered or on the financing of terrorism.

6.1. Statistical Data at the Global Level

Now, in a 2021 report by the Panel on Financial Accountability, Transparency and Integrity (FACTI), it was indicated that money laundering, globally, represented 2.7% of the Gross Domestic Product (GDP), which would imply around 1.6 trillion dollars lost to money laundering by criminals, including drug traffickers and organized crime.

The report, beyond clarifying that the figures are nothing more than estimates, as the secrecy of the crime complicates having an exact figure, indicated that between 20,000 and 40,000 billion dollars are destined annually to bribes for public officials, indicating that governments lose 500,000 to 600,000 billion dollars annually due to the transfer of profits from multinational companies to other countries.

6.2. Updated Data at the Local Level

a.) National Risk Assessment 2022.

At the local level, and according to what is indicated in the First National Risk Assessment Report on the Prevention of Asset Laundering in Argentina as a country, approved by a decree of the Executive Branch published in 2022, a total of 1,386 asset laundering cases initiated between 2017 and 2020 were identified, estimating that the annual amount affected by the crime of asset laundering in that period was more than ONE BILLION SIXTY MILLION US DOLLARS (USD 1,069,524,179.95).

On the other hand, from the aforementioned National Risk Assessment Report, it is interesting to highlight the data associated with the idiosyncrasy of Argentina, which is reflected in the fact that of all the asset laundering cases with an identified predicate offense, 42% correspond to assets derived from tax crimes (tax evasion and others), 29% to drug-related crimes, 10% to property crimes, and 9% to customs crimes (smuggling and others).

b.) Statistical Report PROCELAC (December 2024). Analysis of Convictions for Asset Laundering in Argentina (2019-2024)

The Prosecutor's Office for Economic Crime and Asset Laundering (PROCELAC) in December 2024 published a statistical report on convictions handed down for asset laundering in Argentina between 2019 and March 26, 2024, a work that reflects the tasks carried out by said Prosecutor's Office within the framework of the Fourth Round of Mutual Evaluations of the FATF in Argentina.

This document offers a detailed analysis of the evolution of sentences, predicate offenses, the profile of the convicted, and the application of penalties. According to the report, during the analyzed period, **91 convictions** were handed down, reflecting a growing trend in the judicialization of these crimes.

The highest concentration of convictions was recorded in the Autonomous City of Buenos Aires and the province of Buenos Aires, followed by Santa Fe, Corrientes, Chaco, and Mendoza.

Regarding the predicate offense and the characterization of Asset Laundering, the report details that **drug trafficking is the main illicit activity linked to asset laundering**, followed by customs crimes, corruption, tax evasion, human trafficking, and the use of unauthorized financial intermediation. These findings coincide with the National Risk Assessment (ENR), which identifies the areas most vulnerable to financial crime in the country.

Another relevant finding is that **9 of the convictions involve funds derived from crimes committed abroad**, highlighting the transnational nature of some money laundering schemes.

Regarding the profiles of the convicted and the type of penalties applied, the report highlights that **54% of the cases involve self-laundering**, that is, when the same person who committed the predicate offense also participates in the asset laundering process. In the remaining cases, the convicted acted as third parties to hide the illicit funds.

Regarding the penalties applied, the report reveals that both individuals and legal entities were sanctioned. In total, 336 people were convicted, of which 310 were individuals and 26 were companies or legal entities. For the latter, the sanctions included cancellation of legal personality, loss of state benefits, and fines.

Finally, regarding the judicial procedure and the modality of execution of the penalties, the report indicates that most of the convictions were obtained through abbreviated trials (58 out of 91 cases), although the number of people convicted in oral and public trials is practically the same. Regarding the execution modality, 36% of the convicted received conditional sentences, while the rest faced effective compliance with the penalty.

This analysis allows us to understand the evolution of convictions for asset laundering in Argentina and their impact on penal strategy. The report highlights that, although penal prosecution mechanisms have been strengthened, challenges remain, such as the need to improve the identification of laundering operations linked to corruption and the use of informal financial structures.

7. Additional Aspects to Consider Regarding Asset Laundering

The crime of Asset Laundering differs from other crimes due to the diversity of ways in which it can be committed and the quality of the people who commit it. In this sense, the commission of this crime can involve both prestigious institutions and individuals of impeccable appearance.

Contrary to what is often thought, this crime does not always require international transactions for its commission, as it can occur within the borders of a single country.

Beyond this, the process of globalization and the technological revolution have made criminals acquire increasingly international levels and the financial aspects of crime become increasingly complex due to the great advances in technology.

The proliferation of international banks around the world and the recent development of virtual assets, virtual asset service providers, and the micro-world of cryptocurrencies have facilitated the transmission and concealment of the origin of funds.

For this reason, the international financial system has recognized that addressing the issue of Money Laundering must continue to be approached from a systematic and coordinated global perspective. This requires common regulatory frameworks or operational guidelines that are continuously updated by studying new methods that criminals develop or seek to develop for laundering money. These findings are then incorporated into international standards and recommendations, which are subsequently transposed into the legal framework of each jurisdiction.

A detailed analysis of the evolution of Argentina?s domestic regulatory framework reveals that its dynamics align with the process described above. Argentina's preventive and repressive system for money laundering will likely continue evolving, improving, and updating in an effort to follow the parameters suggested by the Financial Action Task Force (FATF) and other international bodies dedicated to this matter. These organizations, as mentioned earlier, are in constant study of the evolution of criminal practices and the strategies employed by offenders, which they then integrate into updated international standards.

Ultimately, the effectiveness and success of our system will always be linked to the continuous maintenance and updating of Argentina?s framework for preventing and prosecuting this crime. This, in turn, will depend on the country's political will to support and align itself with the global and systematic fight against money laundering.

At present, this political will must not waver. While Argentina has managed to avoid being placed on the FATF Grey List, this does not mean its performance has been optimal. In fact, the report published by FATF on December 18, 2024, in Paris highlights that, despite significant regulatory advancements, weaknesses persist in the effective implementation of prevention and control policies. Consequently, the country has been placed under an intermediate level of enhanced monitoring to assess its progress over the course of one year.

In this regard, the inclusion of Argentina on FATF's Grey List would entail financial restrictions and increased scrutiny from international organizations, potentially leading to negative consequences for the country, particularly concerning access to credit programs from the World Bank and the International Monetary Fund, both of which are FATF collaborators.

This underscores the urgent need for authorities to redouble their efforts in refining and strengthening both the preventive and repressive systems for combating this crime.