Friday, February 3, 2023

Flight of the Dollar: Free Stones in Argentina’s Accounts in the US | long distance financial information sharing agreement

The Economy Minister, Sergio Massa, and the United States Ambassador to Argentina, Mark Stanley, on Monday signed an agreement for the automatic exchange of tax information between Argentina and that country. Massa highlighted the fact as “a very important step”. This would allow the state to access information about the money, it is estimated, that fled the United States at around $100 billion. and that they belong to residents of Argentina who have not declared them in the country.

The agreement will enter into force on 1 January and from that moment, for the first time, Argentina will use “en masse” the data of all accounts opened by residents of Argentina, either in their personal name or attributed to a company, Balances, movements and even income from interest, profit or dividend that could have been received and recognized in that country”, indicated an official source, elaborating on the minister’s statements.

This Monday afternoon, officials from the Economic Team held a meeting with representatives of the Argentine banking sector to inform them of the obligations under this Agreement with respect to accounts opened in the country by US residents. It is the counterpart of the Mutual Information Agreement.

new laundering

On the other hand, national officials confirmed that the bill will be sent to the National Congress in the next few days to open a new procedure for expropriation or undeclared money laundering, giving the possibility to those who have assets abroad. In such cases, they can regularize them before they are detected through the new information exchange mechanism.

“I want to take advantage of the presence of the President of the Chamber of Deputies of the Nation (Cecilia Moro) to quickly convene the heads of the commissions to implement the law that promotes the possibility of externalization (of capital).” He told Massa during his speech, this Monday at noon, at the Nestor Kirchner Cultural Center.

In this sense, he urged that the bill also “punish with full force those who, after completing the steps of the externalization process, do not launder or take out their funds abroad.”

“Today we are taking a step that took a long time for our country, but has changed in an incredibly short time, following the arrival of Ambassador Mark Stanley to Argentina,” commented the head of the Palacio de Hacienda.

Unlike other agreements signed with the United States, this time the “fundamental change” is about how information volumes work. “It is automated, with database work and based on a mechanism and a protocol that AFIP and the IRS (US AFIP) have to meet with the strictest technical, operational and confidential rigors,” said the head of the Palace. Treasury’s.

exclusive to widespread

Massa recalled that “in 2017 Argentina signed an information exchange agreement with the United States, but with one specificity; it didn’t help us at all, because it was a person-to-person exchange on request”. : This year we only had information about 68 citizens with that model agreement,” he revealed.

Instead, it characterized the new agreement as “comprehensive”, based on the fact that those who have signed the Foreigners’ Declaration at the time of depositing their money in an account in the United States and those who have entered the United States as individuals I have done so, being part of companies or trusts (trust funds in favor of certain beneficiaries)”, he asserted.

For Sergio Massa, this agreement marks a leap in quality in relations with the United States. “It is a great gesture of trust on the part of the Government of the United States to the Government of Argentina, in a relationship that originated in 1823, when they recognized the United Provinces of the Río de la Plata and their autonomy, and today, this agreement begins an even deeper and more mature chapter in terms of relationships with the

argentine feet

Banks and insurers based in Argentina must also adapt their systems to respond to any requirements formulated by the US authorities on citizens of that country.

At the Palacio de Hacienda, they point to taxpayers who participated in money laundering implemented during the Mauricio Macri administration, declaring assets they owned in OECD countries that entered into an information exchange regime at the time Which is similar to what is now signed with the United States. But he took refuge in the information vacuum regarding the assets in the US as it had not participated in the agreement at the time. Now, on the other hand, they will be included in the new agreement and will be subject to scrutiny by the Treasury. An official source commented, if he did not declare those assets in the new laundering and they were detected by the AFIP, his rights from the previous laundering would lapse.

dates of agreement

According to the same sources, according to the new agreement, the United States once a year (every September 30) will inform about the balance in the account of Argentina in its country by December 31, but already from next January 1 to AFIP shall have access to this information for inspection procedures that he considers necessary to carry out.

“No one believed this was going to happen, as they also suspected that the banking secrecy of Uruguay or Switzerland would be lifted, but relations in the financial world are changing and today the agreement is being discussed among many people. There is great concern, which has finally been signed and will be fully operational in a few weeks,” said an official source. Jump,” he said.

Nation World News Desk
Nation World News Desk
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