In future, entities in Uruguay are obliged to adopt measures designed to prevent money laundering. These entities are:
- operators and direct and indirect users of tax-free zones
- casinos
- real estate businesses
- lawyers
- notaries
- accountants
- auctioneers
- merchants of antiques and artworks
- suppliers of certain services (setting up companies, directors’ duties, etc.)
- non-profit organisations
- cross-border transport of valuables
Agents of the financial system are not included in this law, since they already have their own regulations issued by BCU.
The entities mentioned above must carry out money laundering risk evaluation as well as adopt the measures required to identify and evaluate them. As a result of this analysis, the level of risk will be identified as low, medium or high. The money laundering risk must be managed by those entities and they must develop procedures and policies that enable the prevention, detection and reporting of unusual or suspicious operations.
The application of these procedures of due diligence must be carried out for new clients as well as for existing ones. In the case of prospective clients, these procedures must be executed before accepting the client, and if such procedures cannot be applied, then the commercial relationship cannot take place.
Due diligence measures must be proportional to the risk identified. If the risk is high, measures will be more extensive. If the risk is low, measures will be simpler. These measures may include:
- identifying the client, the person who acts in behalf of the client and the ultimate beneficiary
- determining the purpose of the commercial relationship and the nature of the business and
- obtaining a reasonable explanation of the licit origin of the funds managed in the operation.
Also, it is necessary to designate a compliance officer whose duties are:
- the periodical review the policies, procedures and controls put into effect
- the presentation of measures to mitigate the risks
- the proposal of alert mechanisms
- collaboration in the design of reports of suspicious operations
- co-ordination of the necessary training and
- verification of the compliance and results of the implementation.
Author: Marcelo Caiafa, Partner, ECOVIS Uruguay, Montevideo, Uruguay, Email: marcelo.caiafa@ecovis.uy
Ecovis is a leading global consulting firm with its origins in Continental Europe. It has over 6,500 people operating in over 70 countries. Its consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.
The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in the back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments – from preparation in the client’s home country to support in the target country.
In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues.
The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.
ECOVIS AG Steuerberatungsgesellschaft
Ernst-Reuter-Platz 10
10587 Berlin
Telefon: +49 89 5898-266
Telefax: +49 (30) 310008556
http://www.ecovis.com
ECOVIS AG Steuerberatungsgesellschaft*
Telefon: +49 (89) 5898-266
E-Mail: gudrun.bergdolt@ecovis.com
