Argentina signs financial information agreement with Uruguay

The measure was carried out after Argentina signed a bilateral agreement with the United States. What are the objectives

For iProfessional

23/12/2022 – 2.08 pm

The president of the National Securities Commission (CNV), Sebastian Negrisigned with the head of the Superintendence of Financial Services (SSF) of the Central Bank of Uruguay (BCU), Juan Pedro Cantera, a mutual cooperation agreementqueries and financial information exchange.

The measure was carried out after Argentina signed a bilateral agreement with the United States for the exchange of financial information with the aim of accessing information on operations of both companies and individuals to avoid tax evasion.

This treaty complements the Multilateral Agreement of Understanding on Consultation, Cooperation and Exchange of Information of the International Organization of Securities Commissions (IOSCO).

“The agreement is part of the policy of the Ministry of Economy to reach agreements that allow access to relevant information on Argentine companies or people abroad to comply with our regulation functionssupervision, control and promotion of fair, efficient and transparent securities markets, protecting investors and reducing systemic risk”, highlighted Negri.

The initiative will offer a tool that will allow quickly access information on cross-border operations related to processes of registration, registration or authorization of companies and individuals to act in the securities markets.

Also with all other information related to the continuous supervision of the participants in the stock market, under conditions of trust, reciprocity and confidentiality.

It seeks to find money from Argentines abroad that have not been declared

Financial information agreement with Uruguay: what data will be requested

Among another series of data that the agreement authorizes to exchange, the possibility of providing, when required by the relevant authority, and in accordance with current legislation in each jurisdiction, financial information on cross-border establishments stands out, especially the following :

– Individual and consolidated financial statements of the cross-border establishments and of the funds or resources administered, with their respective notes.

– Indicators and/or reports of profitability and risk.

– Detail of the investment portfolio of cross-border establishments and managed funds.

– Operations carried out between the regulated Entity and the cross-border establishment and between the funds managed by said entities or their managed funds.

Negri had met on August 12 with the head of the Superintendence of Financial Services (SSF) of Uruguay, Juan Pedro Cantera, to refine details for the signing of this bilateral memorandum of understanding, which he had been negotiating since 2018.

In this way, it will be possible to avoid the proliferation of scams and fraud related to irregular public offerings and the actions carried out by each regulator in order to prevent and reduce the effects.

The agreement will provide information on interest, dividends and other income from US sources

Main characteristics of the agreement published by the United States

The main characteristics of the FATCA financial information exchange agreement signed with the US are the following:

• In 2021, the United States sent the updated draft of Model 1 of the IGA agreement and currently it is the only one that negotiates and subscribes, reports in Memorandum.
• Argentina negotiated a reciprocal IGA 1 Model Agreement.
• Among the possible agreements to celebrate It is the broadest in that there are commitments and obligations on both sides.
• If all notifications and protocols are complied with, the agreement enters effective January 1, 2023.
• The agreement includes all 50 US states, including Delaware and South Dakota.

The United States only excludes American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands from its definition of US territory.