Argentina Avoids FATF Grey List, Boosting President Milei’s Efforts to Stabilize Economy

Argentina has successfully avoided being added to the Financial Action Task Force’s (FATF) “grey list,” marking a critical achievement for President Javier Milei’s administration. The FATF, an international body that establishes anti-money laundering (AML) standards, approved Argentina’s most recent “Mutual Evaluation Report” during its plenary session last week.

This evaluation occurred at a crucial time for Argentina, as President Milei faces an economic crisis, with inflation rates soaring over 100% annually. A placement on the grey list would have meant economic sanctions for Argentina, potentially weakening investor confidence at a time when the country is actively working to rebuild its international credibility.

Argentina’s Justice Minister Mariano Cúneo Libarona stated that the government’s commitment to FATF compliance helped prevent the grey list designation. “We took the necessary steps to align with international standards, reaffirming our commitment to fighting money laundering and terrorism financing,” he stated. Libarona also pointed out that Argentina had previously been on the grey list under former President Cristina Fernández de Kirchner and was again at risk of being added last year during Alberto Fernández’s administration.

The FATF’s evaluation did reveal that Argentina still faces AML challenges. “Argentina needs to better understand the money laundering and terrorist financing risks it faces,” the FATF reported. In particular, the assessment noted vulnerabilities tied to corruption and the use of “informal financial services.” FATF recommended stronger regulation in these areas.

Nonetheless, the FATF concluded that Argentina had made notable improvements to its AML framework since its last review in 2010, highlighting “strengths in domestic cooperation and coordination between agencies.”

Argentina’s delegation to the FATF session in Paris included key officials such as Justice Secretary Sebastián Amerio and Financial Intelligence Unit head Ignacio Yacobucci. Following an extensive review involving multiple national institutions, including Argentina’s Supreme Court, the FATF approved Argentina’s report.

Remaining off the grey list was essential for Argentina’s economic outlook, as the country continues to implement reforms aimed at attracting significant foreign investments. For many international companies, investing in grey-listed countries raises concerns over legal stability and risks associated with money laundering.

Currently, the FATF grey-list includes around 20 countries, such as Kenya, Syria, and Haiti. In contrast, only three countries—North Korea, Iran, and Burma—are on the FATF’s black list.

By fLEXI tEAM