Identity Verification, KYC and AML Compliance in Argentina

Key takeaways:
 

Identity verification in Argentina requires advanced technological solutions that overcome document fragmentation and comply with strict regulatory standards.

The KYC and AML ecosystem in Argentina demands tools that integrate artificial intelligence, multimodal verification, and real-time screening.

Argentina's regulatory challenges require a compliance solution that combines technological precision, regulatory adaptability, and protection against financial fraud.

Digital transformation in Argentina involves implementing identity verification systems that are secure, fast, and fully aligned with FATF international standards.

Argentina’s economy is complex and difficult to analyze. In this maze, every move counts, which is why companies are starting to take note: KYC and AML processes in Argentina are key for institutions to effectively combat financial fraud.

The Financial Information Unit (UIF) has been central to this regulatory regeneration process, with Resolution 76/2019 as a major milestone. This regulation strictly defines customer identification and the detection of suspicious activities. Measures like this helped block more than 2,500 operations last year, with an estimated value of 350 million pesos (about $444,000), demonstrating the effectiveness of control systems.

KYC and AML regulations in Argentina align with the standards of the Financial Action Task Force (FATF). This has radically transformed how some KYC process components are carried out, such as document verification. Communications from the Central Bank like 6859 and 6885 in 2020 marked a turning point by establishing stricter requirements for obligated entities in the country with the implementation of identity verification protocols and anti-money laundering measures.

The Legal Framework of KYC and AML in Argentina: Regulatory Requirements

The regulatory frameworks of KYC and AML in Argentina have undergone significant transformation in recent years. The approval of Law 27.739 in March 2024 marks a turning point in financial regulation, especially for virtual asset service providers (VASPs). This demonstrates that KYC regulations play an increasingly important role in detecting and preventing economic crimes and terrorism financing.

Argentina is building an increasingly sophisticated regulatory ecosystem. The creation of the Virtual Asset Service Providers Registry (PSAV) and complementary resolutions like CNV 994/2024 and UIF 49/2024 bring the country into alignment with international standards set by FATF. Compliance with KYC and AML regulations in Argentina is a necessity for any obligated entity operating in the country.

The Central Bank of Argentina (BCRA): The Main Regulatory Body

The Central Bank of Argentina (BCRA) has become the main architect of regulatory transformation regarding document verification, identity verification, and fraud prevention. Communications “A” 6859 and 6885, both published in 2020, represent a turning point for Payment Service Providers (PSPCP) in Argentina.

These communications are genuine financial modernization tools: they serve to establish stricter criteria for customer identification, implement security protocols, and control mechanisms. With them, obligated entities must step up their compliance standards.

We could say that KYC and AML regulations in Argentina have shifted from reactive to proactive, now understanding that identity verification is a line of defense rather than just a formality. All this is thanks to insights from the Argentine Central Bank over recent years regarding identification and prevention.

Financial Information Unit (UIF): Prevention Regulations

A key aspect of compliance is Resolution 76/2019 from the Financial Information Unit (UIF), which marks a before-and-after moment for everything related to KYC in Argentina. What makes this regulation important? It delves into the Anti-Money Laundering and Terrorism Financing Prevention System (SPLA/FT), specifying customer identification standards that go far beyond simple document verification.

The UIF’s approach in Resolution 76/2019 urges obligated entities to understand each customer's risk profile. To achieve this, institutions must have continuous monitoring systems, transaction analysis to detect unusual activities, and due diligence procedures to identify potential suspicious activities.

Identity Verification in Argentina:

Identity verification in Argentina is seen as a real puzzle for KYC service providers. Digital expansion adds to the complex regulatory reality, creating a difficult challenge for many solutions: the market demands precise, secure, high-quality identification tools.

Unlike other nearby countries, Argentina presents a unique scenario when it comes to document verification. The identity system lacks a unified digital infrastructure, creating constant friction in identification and authentication processes.

Projects like QuarkID in Buenos Aires and recent regulations such as Decree 743/2024 on digital signatures are emerging as promising solutions. These initiatives aim to facilitate identity verification through facial biometrics technologies and decentralized protocols, representing significant progress toward digitizing identification processes to align with international best practices for identity verification.

Document Verification Challenges in Argentina

Document verification in Argentina poses a major challenge for almost all traditional authentication methods. As a federation of 23 provinces and one autonomous city, this South American country issues different identity documents, each with its own challenges.

The continuous updates are one of the main characteristics of Argentine documents. From 2009 until now (2024), Argentine documentation has undergone numerous significant changes with added security features.

The physical characteristics of these documents add further complexity. Shiny holograms, low-contrast background patterns, and other security elements make traditional systems unable to verify these documents effectively.

Key Documents in Argentina: DNI, Passport, and Driver’s Licenses

The National Identity Document (DNI) is the central element of identification in Argentina. Mandatory for all residents—even non-citizens—it represents a unique challenge for verification systems. It features an 8-digit number, inclusive gender options (F, M, X), and updates at ages 8 and 14. It is also valid as a travel document within MERCOSUR countries.

Argentine passports have significantly evolved since the biometric version was issued in 2012. With an RFID chip containing personal data, these documents offer multiple layers of security. Their validity varies from 10 years for adults to 5 years for minors.

Driver’s licenses also have their own story. Standardized since 2013, they include two barcodes along with a complementary digital version issued in 2019. Although the digital document is represented by a QR code with a digital signature, it does not replace the physical document, which remains mandatory.

Didit: Transforming Identity Verification and KYC/AML Compliance in Argentina

Identity verification in Argentina—and thus KYC/AML compliance—is a challenge requiring resources: improper implementation can hinder business growth. In response to this situation, Didit emerges as a solution that turns obstacles into new opportunities through free identity verification services—unlimited forever.

Our proposal goes beyond just providing a service: we aim to democratize access to cutting-edge identity verification technologies. By offering a tool tailored to Argentine needs, Didit helps redefine compliance standards across the country.

Didit's free KYC service is based on three pillars addressing common market challenges:

• Document Verification: We use artificial intelligence algorithms capable of validating Argentine documents with unprecedented accuracy. Our system detects inconsistencies and extracts information precisely while adapting to Argentina's complex documentary reality—from DNIs to provincial driver’s licenses.
• Facial Recognition: We implement custom AI models that go beyond simple comparison tests. Our passive liveness test ensures that the person identifying themselves is who they claim to be—overcoming document fraud challenges typical of the Argentine market.
• AML Screening (optional): We perform real-time checks against more than 250 global data sets covering over one million entities on watch lists—helping companies comply with UIF Resolution 76/2019 requirements as well as Central Bank communications while providing an additional layer of security.

What Official Documentation Does Didit Verify in Argentina?

Didit can solve problems faced by traditional identity verification systems within Argentina's context. Our free solution can work with various local documentation types—including identity cards (DNI), passports, and driver’s licenses—allowing you to verify your users' identities without complications while overcoming challenges posed by non-standardized documentation across provinces.

In short—for the Argentine market—this means:

• Full compliance with UIF Resolution 76/2019 & Decree 743/2024
• Up to 90% operational cost reduction
• KYC processes completed in under 30 seconds
• Identity verification aligned with FATF standards & new digital signature regulations

Do you want to turn identity verification challenges into competitive advantages?