On July 16, 2020, the Central Bank of the Argentine Republic (the “Central Bank”) by means of Communication “A” 7072 (the “Communication”) modified the operational instructions regarding the functionality of immediate transfers of foreign currency and increase the controls applicable to such transfers in order to eliminate any suspected breach of the exchange controls applicable to the purchase of foreign currency by Argentine individuals for the creation of external assets.
In this regard, the Communication include as part of the “know your customer” policy that receiving entities must defer the crediting the foreign currency to destination accounts as of the second transfer of foreign currency received in the same destination account during the calendar month. Such deferral may not exceed 1:00 p.m. of the following business day.
To this end, the the financial entities may require that the receiving client justify the reason for the transfer of foreign currency. If the transfer of foreign currency justification is not provided within the time limit set forth by the Communication (1:00 p.m. of the following business day), the receiving entity must reject such transfer.
Notwithstanding the aforementioned, the Communication establishes that the receiving entities may exempt those clients which, due to their own activity, may justify the recurrence of transfers of foreign currency.
Access to the complete text of the Communication here.
This publication does not offer a legal opinion on specific matters. If necessary, you should seek specialized legal counsel.
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