Argentina To Amend Its Legal Framework For Private Banking

The Argentine Government (through its Secretariat of Finance) and the Argentine Securities and Exchange Commission are working on a bill to amend the Capital Markets Law that will be sent to Congress sometime in this coming September.

Among other market friendly items of this bill, the same will admit conduct of private banking activities by representatives of those foreign banking and financial entities that have no license from the Argentine Central Bank to operate in Argentina. Up to this date, those activities have been forbidden.

The law and its regulation will contemplate that those representatives of non-licensed foreign banks and financial entities wishing to conduct business in Argentina shall have to enroll with Argentine authorities and pay taxes in Argentina, set-up bank accounts for the inflow of funds, and constitute special domiciles in Argentina.