|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Uruguay remains vulnerable to the threats of money laundering
(ML) and terrorist financing (TF). Uruguay has a highly dollarized
economy, with the U.S. dollar often used as a business currency;
about 75% of deposits and 50% of credits are denominated in U.
S. dollars. Officials from the Uruguayan police and judiciary
assess that there is a growing presence of Mexican and
Colombian criminal organizations in the region and are concerned
they could begin operating in Uruguay. Drug dealers are
increasingly participating in other illicit activities like car theft and
trafficking in persons.
The vast majority of money laundering cases that have become
public have been related to drugs and/or involve the real estate
sector. Uruguay has porous borders with Argentina and Brazil
and, despite its small size, there is a market for smuggled goods
that is greatly determined by price differentials between Uruguay
and its neighbors. Regular trade-based money laundering is likely
to occur but specialists do not identify it as a major source of risk,
and there is no indication it is tied to terrorist financing. However,
bulk cash smuggling is likely to occur. Public corruption does not
seem to be a significant factor behind money laundering or
terrorist financing. To the extent known, laundered criminal
proceeds derive primarily from foreign activities related to drug-
trafficking organizations.
Given the longstanding free mobility of capital in Uruguay, the
informal financial sector is practically non-existent. Money is
therefore likely to be laundered via the formal financial sector
(onshore or offshore). The six offshore banks operating in
Uruguay are subject to the same laws, regulations, and controls
as local banks, with the Government of Uruguay (GOU) requiring
they be licensed through a formal process that includes a
background investigation of the principals. Offshore trusts are not
allowed. Bearer shares may not be used in banks and institutions
under the authority of the Central Bank, and any share
transactions must be authorized by the Central Bank. There are
13 free trade zones (FTZs) located throughout the country. While
most are dedicated solely to warehousing, two were created
exclusively for the development of the paper and pulp industry,
and three accommodate a wide variety of tenants offering a wide
range of services, including financial services. Some of the
warehouse-style FTZs have been used as transit points for
containers of counterfeit goods bound for Brazil and Paraguay. A
decree passed in November 2010 discourages shell companies
from establishing a presence in FTZs.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: no
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: NO civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, currency exchange houses,
stockbrokers, pension funds, insurance companies, casinos, art
dealers, real estate and fiduciary companies, lawyers,
accountants, and other non-banking professionals that carry out
financial transactions or manage commercial companies on behalf
of third parties
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 150 - January 1–
November 4, 2011
Number of CTRs received and time frame: Not available
STR covered entities: Banks; currency exchange houses;
stockbrokers and pension funds; insurance companies;
businesses that perform safekeeping, courier or asset transfer
services; professional trust managers; investment advisory
services; casinos; real estate brokers and intermediaries;
notaries; auctioneers; dealers in antiques, fine art and precious
metals or stones; FTZ operators; and other persons who carry out
transactions or administer corporations on behalf of third parties
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Four in 2009
Convictions: Four in 2009
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Uruguay is a member of the Financial Action Task Force on
Money Laundering in South America (GAFISUD), a Financial
Action Task Force-style regional body. Its most recent mutual
evaluation can be found here: http://www.gafisud.
info/pdf/InformeEMUruguay09.pdf
Enforcement and implementation issues and comments:
Uruguay continued making progress in 2011. The main
development was the design of a new National Strategy against
money laundering put together with the technical support of the
IMF. The project, expected to be a major improvement from the
previous 2007 strategy, was developed in two stages:
identification of the most vulnerable areas (2010) and design of a
strategy to address those (2011). The strategy will be
implemented in 2012-2015.
The GOU is also strengthening its Anti-Money Laundering
Secretariat (AMLS) that will grow in scope and staff. In addition to
developing the new strategy, in 2011, the AMLS continued
working with non-financial sector entities obliged to report
suspicious transactions, mainly notaries, real estate agents and
casinos. The AMLS has made substantial progress in the design
of standardized forms with the local association of notaries. A
group of large bureaus that administer corporations are also
developing auto-regulatory standards. The AMLS also is very
focused on financial investigations and seeks to create
awareness about the importance of seizing assets as well as
imprisoning criminals.
Another positive development is the signing of an MOU under
which the Financial Intelligence Unit (UIAF) is granted immediate
online access to the database of the tax administration authority
(DGI). In turn, DGI is working to open an international division to
work on AML cases that are reported from abroad.
Other UIAF-related developments in 2011 include the design of a
set of early-warning indicators that will allow it to leverage its
comprehensive database of currency transaction reports, and the
upgrading of regulations for firms that wire funds in order to level
the playing field vis-à-vis financial services firms (a structure that
stemmed from some large exchange houses).
The Superintendency of Financial Services, which oversees the
UIAF, is also in the process of redesigning and upgrading
management requirements for financial companies. This process
entails the extension to insurance and capital market institutions
of strong management practices already established for banks. In
2011, the Superintendency made significant progress with
insurance companies and moderate progress with capital market
institutions. The UIAF also emphasized onsite inspections of
capital market institutions that previously received less attention
than banking firms.
Prosecutions and convictions dropped in 2010 and 2011. In 2009
alone the GOU had frozen assets totaling $17 million. In 2011, it
did not freeze any funds except for one safe-deposit box.
The GOU should amend its legislation to provide for criminal
liability for legal persons.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Uruguay is not a major narcotics producing country. However,
foreign drug traffickers, increasingly attracted to Uruguay’s
strategic maritime location, take advantage of its porous borders
with Argentina and Brazil to transit illegal substances through the
country. Local consumption of the highly addictive and
inexpensive cocaine base product known as pasta base, or Paco,
remains a serious problem. Efforts to fight trafficking and domestic
consumption are relatively effective despite the limited resources
available to law enforcement agencies and drug programs.
Uruguay is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Uruguay is a source and transit country for men, women, and
children subjected to sex trafficking and forced labor. Most victims
are women and girls trafficked within the country to border and
tourist areas for commercial sexual exploitation; some boys are
also trafficked for the same purpose. Lured by fraudulent
recruitment offers, some Uruguayan women migrated to Spain
and Italy, and were subsequently forced into prostitution. During
the reporting period, there were specific cases of Uruguayan
children subjected to sex trafficking in Brazil. Although there have
been few confirmed cases of forced labor in Uruguay, there are
reports of exploitation of foreign workers in the agricultural sector,
including fisheries. There is anecdotal evidence that some cases
of human trafficking were linked to local and international crime
rings that smuggle narcotics and other contraband and which
operate in industrial areas.
The Government of Uruguay does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government increased its prevention efforts and convicted
and sentenced two trafficking offenders under laws prohibiting the
sexual exploitation of children. The government, however,
continues to lag in employing its anti-trafficking law to prosecute
and convict trafficking offenders and in proactively investigating
potential forced labor cases. The Government of Uruguay also
lacked a formal system for identifying trafficking victims, as well as
specialized staff and services focused on the needs of victims.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Uruguay was a willing partner of the United States in
counterterrorism efforts and improved its ability to fight
international crime through legislation, better protection of its
borders, and military training. The Government of Uruguay
focused its efforts to promote global security through collective
action within multinational organizations such as the U.N. and
Organization of American States (OAS). Uruguay is a member of
the MERCOSUR Permanent Working Group on terrorism,
together with Argentina, Brazil, Chile, Paraguay, and Bolivia. The
group facilitates cooperation and information sharing. Uruguay
has also been active in a range of international counterterrorism
efforts, particularly in the Rio Group and the OAS.
A new money laundering law passed in 2009 further defined
money laundering, including as it relates to terrorist financing.
Uruguay’s level of cooperation and intelligence sharing on
counterterrorism-related issues improved. The political leadership
in the Ministries of Defense and Interior increasingly saw terrorism
as a significant issue for Uruguay, and working level officers in law
enforcement and security services recognized the importance of
conducting pro-active investigations and intelligence sharing with
the U.S. government and other Latin American countries.
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Uruguay remains vulnerable to the threats of money laundering
(ML) and terrorist financing (TF). Uruguay has a highly dollarized
economy, with the U.S. dollar often used as a business currency;
about 75% of deposits and 50% of credits are denominated in U.
S. dollars. Officials from the Uruguayan police and judiciary
assess that there is a growing presence of Mexican and
Colombian criminal organizations in the region and are concerned
they could begin operating in Uruguay. Drug dealers are
increasingly participating in other illicit activities like car theft and
trafficking in persons.
The vast majority of money laundering cases that have become
public have been related to drugs and/or involve the real estate
sector. Uruguay has porous borders with Argentina and Brazil
and, despite its small size, there is a market for smuggled goods
that is greatly determined by price differentials between Uruguay
and its neighbors. Regular trade-based money laundering is likely
to occur but specialists do not identify it as a major source of risk,
and there is no indication it is tied to terrorist financing. However,
bulk cash smuggling is likely to occur. Public corruption does not
seem to be a significant factor behind money laundering or
terrorist financing. To the extent known, laundered criminal
proceeds derive primarily from foreign activities related to drug-
trafficking organizations.
Given the longstanding free mobility of capital in Uruguay, the
informal financial sector is practically non-existent. Money is
therefore likely to be laundered via the formal financial sector
(onshore or offshore). The six offshore banks operating in
Uruguay are subject to the same laws, regulations, and controls
as local banks, with the Government of Uruguay (GOU) requiring
they be licensed through a formal process that includes a
background investigation of the principals. Offshore trusts are not
allowed. Bearer shares may not be used in banks and institutions
under the authority of the Central Bank, and any share
transactions must be authorized by the Central Bank. There are
13 free trade zones (FTZs) located throughout the country. While
most are dedicated solely to warehousing, two were created
exclusively for the development of the paper and pulp industry,
and three accommodate a wide variety of tenants offering a wide
range of services, including financial services. Some of the
warehouse-style FTZs have been used as transit points for
containers of counterfeit goods bound for Brazil and Paraguay. A
decree passed in November 2010 discourages shell companies
from establishing a presence in FTZs.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: no
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: NO civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, currency exchange houses,
stockbrokers, pension funds, insurance companies, casinos, art
dealers, real estate and fiduciary companies, lawyers,
accountants, and other non-banking professionals that carry out
financial transactions or manage commercial companies on behalf
of third parties
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 150 - January 1–
November 4, 2011
Number of CTRs received and time frame: Not available
STR covered entities: Banks; currency exchange houses;
stockbrokers and pension funds; insurance companies;
businesses that perform safekeeping, courier or asset transfer
services; professional trust managers; investment advisory
services; casinos; real estate brokers and intermediaries;
notaries; auctioneers; dealers in antiques, fine art and precious
metals or stones; FTZ operators; and other persons who carry out
transactions or administer corporations on behalf of third parties
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Four in 2009
Convictions: Four in 2009
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Uruguay is a member of the Financial Action Task Force on
Money Laundering in South America (GAFISUD), a Financial
Action Task Force-style regional body. Its most recent mutual
evaluation can be found here: http://www.gafisud.
info/pdf/InformeEMUruguay09.pdf
Enforcement and implementation issues and comments:
Uruguay continued making progress in 2011. The main
development was the design of a new National Strategy against
money laundering put together with the technical support of the
IMF. The project, expected to be a major improvement from the
previous 2007 strategy, was developed in two stages:
identification of the most vulnerable areas (2010) and design of a
strategy to address those (2011). The strategy will be
implemented in 2012-2015.
The GOU is also strengthening its Anti-Money Laundering
Secretariat (AMLS) that will grow in scope and staff. In addition to
developing the new strategy, in 2011, the AMLS continued
working with non-financial sector entities obliged to report
suspicious transactions, mainly notaries, real estate agents and
casinos. The AMLS has made substantial progress in the design
of standardized forms with the local association of notaries. A
group of large bureaus that administer corporations are also
developing auto-regulatory standards. The AMLS also is very
focused on financial investigations and seeks to create
awareness about the importance of seizing assets as well as
imprisoning criminals.
Another positive development is the signing of an MOU under
which the Financial Intelligence Unit (UIAF) is granted immediate
online access to the database of the tax administration authority
(DGI). In turn, DGI is working to open an international division to
work on AML cases that are reported from abroad.
Other UIAF-related developments in 2011 include the design of a
set of early-warning indicators that will allow it to leverage its
comprehensive database of currency transaction reports, and the
upgrading of regulations for firms that wire funds in order to level
the playing field vis-à-vis financial services firms (a structure that
stemmed from some large exchange houses).
The Superintendency of Financial Services, which oversees the
UIAF, is also in the process of redesigning and upgrading
management requirements for financial companies. This process
entails the extension to insurance and capital market institutions
of strong management practices already established for banks. In
2011, the Superintendency made significant progress with
insurance companies and moderate progress with capital market
institutions. The UIAF also emphasized onsite inspections of
capital market institutions that previously received less attention
than banking firms.
Prosecutions and convictions dropped in 2010 and 2011. In 2009
alone the GOU had frozen assets totaling $17 million. In 2011, it
did not freeze any funds except for one safe-deposit box.
The GOU should amend its legislation to provide for criminal
liability for legal persons.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Uruguay is not a major narcotics producing country. However,
foreign drug traffickers, increasingly attracted to Uruguay’s
strategic maritime location, take advantage of its porous borders
with Argentina and Brazil to transit illegal substances through the
country. Local consumption of the highly addictive and
inexpensive cocaine base product known as pasta base, or Paco,
remains a serious problem. Efforts to fight trafficking and domestic
consumption are relatively effective despite the limited resources
available to law enforcement agencies and drug programs.
Uruguay is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Uruguay is a source and transit country for men, women, and
children subjected to sex trafficking and forced labor. Most victims
are women and girls trafficked within the country to border and
tourist areas for commercial sexual exploitation; some boys are
also trafficked for the same purpose. Lured by fraudulent
recruitment offers, some Uruguayan women migrated to Spain
and Italy, and were subsequently forced into prostitution. During
the reporting period, there were specific cases of Uruguayan
children subjected to sex trafficking in Brazil. Although there have
been few confirmed cases of forced labor in Uruguay, there are
reports of exploitation of foreign workers in the agricultural sector,
including fisheries. There is anecdotal evidence that some cases
of human trafficking were linked to local and international crime
rings that smuggle narcotics and other contraband and which
operate in industrial areas.
The Government of Uruguay does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government increased its prevention efforts and convicted
and sentenced two trafficking offenders under laws prohibiting the
sexual exploitation of children. The government, however,
continues to lag in employing its anti-trafficking law to prosecute
and convict trafficking offenders and in proactively investigating
potential forced labor cases. The Government of Uruguay also
lacked a formal system for identifying trafficking victims, as well as
specialized staff and services focused on the needs of victims.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Uruguay was a willing partner of the United States in
counterterrorism efforts and improved its ability to fight
international crime through legislation, better protection of its
borders, and military training. The Government of Uruguay
focused its efforts to promote global security through collective
action within multinational organizations such as the U.N. and
Organization of American States (OAS). Uruguay is a member of
the MERCOSUR Permanent Working Group on terrorism,
together with Argentina, Brazil, Chile, Paraguay, and Bolivia. The
group facilitates cooperation and information sharing. Uruguay
has also been active in a range of international counterterrorism
efforts, particularly in the Rio Group and the OAS.
A new money laundering law passed in 2009 further defined
money laundering, including as it relates to terrorist financing.
Uruguay’s level of cooperation and intelligence sharing on
counterterrorism-related issues improved. The political leadership
in the Ministries of Defense and Interior increasingly saw terrorism
as a significant issue for Uruguay, and working level officers in law
enforcement and security services recognized the importance of
conducting pro-active investigations and intelligence sharing with
the U.S. government and other Latin American countries.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| URUGUAY |
| KnowYourCountry |
|
|
____________________________________________________
AML News / Updates
December 27, 2011 - Uruguay moved to OECD white list for
jurisdictions that have substantially implemented the internationally
agreed tax standard
Read More
Links:
Worldwide AML Legislation (International Bar Association)
AML News / Updates
December 27, 2011 - Uruguay moved to OECD white list for
jurisdictions that have substantially implemented the internationally
agreed tax standard
Read More
Links:
Worldwide AML Legislation (International Bar Association)
| Last Updated: 16 April 2012 |