Once the new government administration took office on March 1, 2020, it introduced a bill of Law for Urgent Consideration (LUC), announced during the election campaign.
The LUC, with some changes to its original draft, it was approved in July 2020 as Law No. 19,889.
Specifically, on the subject of prevention of asset laundering and terrorism financing, the LUC authorizes conducting a simplified due diligence process in cases where the transaction or activity is performed via electronic payment, such as bank transfers or other payment instruments issued by financial institutions, or which such institutions are obliged to pay, or securities of which the latter are depositaries.
The exceptions established in the law are the cases already foreseen in the applicable rules as warranting enhanced diligence, insofar as the client is considered a politically exposed person, or coming from countries who are not members of the International Financial Action Task Force (FATF), coming from countries subject to sanctions or financial countermeasures issued by bodies such as the United Nations Security Council, coming from low or no tax countries, jurisdictions or special regimes, lacking the physical presence of the parties or their representatives, using new or developing technologies that favor anonymity in transactions, using high volumes of cash, etc.