Argentine central bank clarifies rules for fiscal innocence law

The new Law 27,799, enacted on January 2, 2026, significantly alters Argentina's tax system, raising the economic threshold for tax evasion and introducing a Simplified Income Tax Affidavit Regime.

This regime allows taxpayers to validate and submit pre-filled affidavits, granting a liberating effect that limits future audits.

Crucially, the law redefines the taxpayer-tax administration relationship by presuming tax compliance unless proven otherwise, moving away from a historical logic of generalized persecution.

In response, the Financial Information Unit (UIF) and the Central Bank of the Argentine Republic (BCRA) have issued guidelines for obligated entities.

They emphasize that holding foreign currency in cash, a rational behavior in high-inflation economies, does not inherently indicate illegality and should not be automatically classified as such.

Its assessment must align with a risk-based approach, considering the client's profile and economic reasonableness, rather than just the presence of cash.

Anti-Money Laundering regulations in Argentina do not prohibit cash deposits, regardless of amount, nor do they mandate information requests on the origin of funds for accepting a deposit.

The regulatory obligation for identification is limited to amounts exceeding 40 Minimum, Vital, and Mobile Wages.

Obligated entities are urged to view adherence to the Simplified Affidavit Regime as a favorable precedent in their risk analysis.

The UIF and BCRA advise reviewing documentation requirements, noting that additional documentation may be unnecessary if fund origins are consistent with declared activity and the client's economic profile, and if no inconsistencies are identified through a comprehensive risk analysis.

This approach aims to strengthen financial inclusion and promote formal channels, while preserving the integrity of the preventive system.