Argentina: Amendments to Foreign Exchange Regulations
Further to our Announcement A16022, dated 9 February 2016, Clearstream Banking1 wishes to inform its customers that, effective
immediately
the Central Bank of Argentina amended, under Communication “A” 5937, conditions on repatriation restrictions for non-residents.
Communication “A” 5937 removes the requirement to verify that the funds to be repatriated have not been used in other investments in Argentina between the date they were collected and the date of their repatriation.
In addition, the Communication defines that if a non-resident receives dividend or interest proceeds and re-invested those proceeds in Argentina, - for example, if they purchased securities, - the subsequent repatriation of those funds does not have to comply with the previous 120 days holding period and the FX inflow requirement.
Impact on customers
Clearstream Banking’s foreign exchange procedure for transactions that falls under the exceptions to the repatriation restrictions remains applicable.
The certification requirements to be inserted within the foreign exchange instruction sent via SWIFT MT599 to Clearstream Banking will be modified in accordance with the above mentioned changes.
The customer shall consequently take into consideration the new enclosed statement when instructing foreign exchange ARS to USD.
Clearstream Banking will continue to monitor the Central Bank regulations via its local Cash Correspondent Bank, Citibank Argentina; custodian, Caja de Valores S.A. and local legal advisers and will keep customers informed.
The Creation Link Guide - Argentina will be updated accordingly.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.