Other services - Argentina
Securities lending and borrowing
All Argentine debt securities eligible in CBL qualify for CBL’s securities lending and borrowing programme.
Non-debt securities are not eligible for CBL’s securities lending and borrowing programme.
Foreign exchange
Foreign exchange services for the Argentine Peso (ARS) are currently not available via CBL.
Further details can be found in the CBL Customer Handbook.
Repatriation of funds
The Central Bank of Argentina (CBA) amended, under Communication “A” 6770,and Communication “A” 6854 dated December 2019 the conditions on repatriation restrictions for non-residents.
Due to the existing restrictions and until further notice, repatriation services via Clearstream Banking are not available.
Compliance
The U.S.A. asserts jurisdiction over transactions involving securities issued or held for custody in the U.S.A., even where the link between the transaction and the U.S.A. is quite attenuated. Some U.S. economic sanctions laws have extraterritorial effect and others impose or threaten third parties' actions with secondary boycotts, which may affect the third parties' access to U.S. financial or other markets. U.S. financial institutions and, in some cases, their foreign-incorporated subsidiaries and affiliates, are subject to U.S. regulations, even when operating outside the U.S.A. CBL intermediates transactions involving securities in which the U.S.A. is the jurisdiction of issuance or custody. CBL also engages U.S. financial institutions to provide custody, depository and other services in selected non-U.S. jurisdictions based on the quality of the services offered and CBL’s other requirements. Such U.S.-owned or controlled institutions may be required to refuse or even block/freeze transactions directly or indirectly involving parties subject to U.S. economic sanctions regulations, regardless of the law of the jurisdiction in which the U.S. institution operates. CBL conducts its business to comply with all laws applicable to CBL. Accordingly, CBL may not be able to complete or may refuse or block/freeze transactions in or through a CBL account that, in CBL's judgment, may expose CBL to U.S. laws and regulations even where neither CBL nor the customer is directly subject to such laws, but where CBL’s chosen custodian or depository is subject to such laws.
Where a U.S.-linked institution serves as CBL’s custodian or depository, the customer acknowledges and accepts the obligation to comply and ensure compliance by any of the customer’s underlying clients, up to the ultimate [legal and] beneficial owner, with any U.S. law, regulation, sanction, order, judgment, injunction, asset freeze, blocking regulation or order or any other act or action of, or by, any national or foreign government, authority, court, (self-) regulatory organisation, government agency or instrumentality of government, including, but not limited to, investment and holding restrictions (“U.S. Regulations”) applicable to any of the customer, its underlying clients or CBL. The customer shall not hold or seek to hold CBL liable for actions by CBL’s chosen custodian or depository to comply with U.S. Regulations applicable to such custodian or depository. The customer shall not, by action or inaction, cause CBL to violate a U.S. Regulation and shall be liable for and hold CBL harmless against any direct or indirect loss, claim, damage, liability or expense, imposed on or incurred by or asserted against CBL in connection with any actual or alleged non-compliance with the aforesaid by the customer or any underlying client of such customer up to the ultimate [legal and] beneficial owner.
Please also refer to the Resource Center of the U.S. Department of the Treasury.
Disclosure requirements
Please refer to Disclosure requirements - Argentina.
Holding restrictions
Please refer to Investment regulation under the Market Profile - Argentina.
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1. Following the Balance of Payment Manual of the IMF, under Argentine regulations, portfolio investment of a non-Argentine resident, includes equity securities and debt securities in the form of bonds and notes, money market instruments, financial derivatives and options. An equity holding of 10% or more of the outstanding share capital of the relevant issuer shall be deemed a “direct investment” and, therefore, shall be excluded of the aforementioned instruments.
2. In case of interest and principal from National Government Bonds issued in USD which, according to their terms and conditions, payment must be made abroad and such securities are held by foreign residents in local custody accounts, such foreign residents can choose between: (i) a cash payment in foreign currency; (ii) the deposit of the funds in a foreign currency local bank account, or (iii) the direct transfer of the foreign currency funds to a foreign bank account.
If after receiving the payment as described in (i) or (ii) above, the foreign holder exchanges the foreign currency funds into local currency in the local foreign exchange market, afterwards, in order to transfer such funds abroad, it will have to provide evidence that the funds entered Argentina from abroad and that they remained in Argentina for a term of no less than 365 days.