On October 17, 2012, there was published in the Federal Official Gazette an executive order issuing the Federal Act to Prevent and Identify Illegally-Funded Transactions.

The purpose of the Act is to track and investigate activities and transactions involving resources illegally obtained. Some of the relevant aspects of the Act are the following:

  • Monetary limits are contemplated for cash transactions related to the purchase of goods in the amounts set out by the Act and a catalog is included of the so-called "vulnerable activities," such as: gambling and betting, sweepstakes and contests, buying and selling of credit cards and prepaid cards, granting of loans or credits by pawnshops and others, the construction, development and purchase of real estate, and the acquisition of vehicles, aircraft and yachts.
  • Nonbank banks are required to verify the identity of their customers and users, request information on their activities, occupation and income source, as well as keep and protect the relevant documentation for five years.
  • Public attestors, including notaries public, are required to notify to the Treasury Department any transaction related to the incorporation of companies, transfer of shares or equity interests, creation or amendments of trusts and purchase and sale of real estate.
  • Banks and foreign exchange firms must implement procedures to prevent and track acts, omissions or suspicious transactions potentially involving money laundering and submit from time to time reports to the Treasury Department.
  • A specialized unit for financial analysis has been created to investigate transactions carried out with illegally obtained resources.

The Federal Act to Prevent and Identify Illegally-Funded Transactions will come in full force and effect as of July 18, 2013. If you have any query on the above, please feel free to contact any of the following lawyers of the financial area of our firm.