On March 2, 2021, in Resolutions 74/21 and 75/21, SEPRELAD established, respectively, a new simplified KYC regime for currency exchange houses, amending article 33 of Resolution 248/20, and for banks and financial companies when engaging in currency exchange and transfers, amending article 27 of Resolution 70/19.

As of its entry into force, provided a currency exchange house or a bank or a finance company determines through the pertinent evaluation and in observance of the various requirements that the ML/FT risks are low, they can now implement abbreviated KYC procedures in the following cases:

1. Currency exchanges

  • Transactions that in the last 12 months do not exceed approximately US$ 16,400.
  • Number of transactions that, based on the parameters indicated in point (a), do not exceed a total of 25 transactions in the last quarter.

 2. Transfers sent and received

  • One-time transactions that do not exceed US$ 1,000.
  • Transactions whose total amounts in the last quarter do not exceed the equivalent of US$ 2,000.
  • The number of transactions that, based on the parameters indicated in section (b), do not exceed a total of 25 transactions in the last quarter.

The minimum information to be recorded under these assumptions in the case of individuals, with the exception of those assumptions for which special regulations require different information, is as follows:

  1. Full names and surnames;
  2. Type and number of identity document;
  3. Nationality;
  4. Address; and
  5. Telephone number and/or email;
  6. Occupation, trade or profession; and
  7. Other information that the currency exchange house, in line with its due diligence policies, considers pertinent to identify its individual clients.

In turn, the minimum information to be recorded under these assumptions in the case of legal entities and legal structures, with exception of those cases where special regulations require different information, is as follows:

  • Name;
  • Identification of agents, legal representatives and ultimate beneficiaries;
  • Economic activity;
  • Telephone number and/or email; and
  • Address of the main office or premises;

For all cases, currency exchange houses must require clients to show a document proving their identity in the case of individuals, or incorporation in the case of legal entities or structures.

This regime cannot be applied when there are suspicions that the transactions carried out by the client may be linked to ML/TF.