Argentine Securities Commission Updates Regulation on Ultimate Beneficial Ownership

On June 26, 2023, the Argentine Securities Commission (CNV) issued General Resolution No. 966/2023, amending the section "Prevention of Money Laundering and Financing of Terrorism" in Annex III of the CNV Regulations regarding public offering of negotiable obligations prospectus for project financing. The amendment updates its definition of “ultimate beneficial owner” in accordance with Resolution UIF No. 112/2021 (find more information on it here) and the future resolutions that may amend, supplement, or replace it. 

The resolution was issued because the CNV, as Reporting Entity, must identify the ultimate beneficial owner of any individual and/or legal entity under its jurisdiction.

Thus, the CNV established that Ultimate Beneficial Owners are those individuals owning at least 10% (it was 20% before this resolution) of the capital or voting rights of a legal entity, a trust, an investment fund or any other legal structure, and/or of those individuals who –by other means exercise, directly or indirectly– have the ultimate control of such structures.

This definition must be considered when informing –through a sworn statement on the cover of the presentation for public offering of negotiable obligations prospectus for project financing– the Ultimate Beneficial Owners of the person and/or legal structure.