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23 January 2018 Uruguayan Parliament approves legislation systematizing and updating the anti-money laundering and terrorism financing regime On 29 December 2017, Uruguay's Executive Power enacted Law No. 19,574 (the Law), which unifies, systematizes and updates the anti-money laundering and terrorism financing regime, and includes new provisions and obligations for certain professionals and organizations. The Law incorporates the "Coordinator Commission Against Money Laundering and Terrorism Financing" into Uruguay's anti-money laundering and terrorism financing regime. This position originally was created by an Executive Power Decree in 2007, but was not part of Uruguay's law. The Law includes new obligations for certain professionals and organizations that will require collaboration with regard to the money laundering and terrorism financing provisions contained in the Law, including: civil associations, political parties and certain professionals such as lawyers and public accountants under certain circumstances. The Law establishes requirements for reporting suspicious activities or transactions and following due diligence procedures established by law. However, the Law establishes limits on the reporting requirement with respect to activities related to the right of legal defense or consulting services. In regards to the specific crime of money laundering, tax fraud will be considered as an underlying offense. Tax fraud will be an underlying offense whenever it falls under a certain threshold of approximately US$320,000 for fiscal year 2018 and US$128,000 for fiscal year 2019 and beyond. Notwithstanding, when the fraud is related to falsified documentation (e.g., invoices), the threshold will not apply.
Document ID: 2018-5175 |
