MAY 5, 2011, 9:10 A.M. ET

http://online.wsj.com/article/BT-CO-20110505-712000.html

BUENOS AIRES (Dow Jones)--Argentina's lower house of Congress approved money-laundering legislation just weeks ahead of an international review of the country's anti-money laundering and terrorist financing controls.

The bill, which enjoyed the backing of President Cristina Fernandez, was passed with 181 votes in favor and 7 abstentions late Wednesday night, according to the lower house's website.

The bill now moves to the senate, which is expected to pass the legislation before the end of the month.

The Financial Action Task Force -- whose 34 member nations include the U.S. -- has given Argentina until its next plenary meeting in June to demonstrate its commitment to beefing up its measures against money laundering and terrorism financing following a damning report published last year by the organization.

Countries that fail to implement FATF's recommendations run the risk of being labeled as high-risk or noncooperative jurisdictions. That can make it more costly and difficult for a nation to conduct business with the financial systems of FATF compliant countries.

An on-site inspection by the FATF in November 2009 found that Argentina was either partially compliant or noncompliant with 46 of its 49 recommendations.

Since the beginning of the year, Argentina's financial crimes agency, UIF, has issued no fewer than 22 new regulations aimed at improving the reporting and documentation requirements for real estate and financial transactions in response to the FATF's observations.