DECEMBER 27, 2011, 12:05 PM ET

http://blogs.wsj.com/corruption-currents/2011/12/27/argentina-passes-bills-toughening-money-laundering-terrorism-financing-laws/?mod=google_news_blog

Argentina’s Senate passed three bills last week that close loopholes in terrorist-financing, money-laundering and tax-evasion regulations, Dow Jones Newswires reported.

The bills, already approved by the Lower House, await the signature of President Cristina Kirchner. They make penalties for tax evasion harsher and double the sanctions for financial crimes linked to terrorism, the report said.

Argentina has been named a “fallen angel” by Corruption Currents for its tumble on the international stage in policing corruption over the years.

The Financial Action Task Force, or FATF, the international body that combats money laundering and terrorist financing, said as recently as November it recognized progress by Argentina, but the terrorism-finance bill had deficiencies that the country “should address before it is enacted.”

Despite FATF finding that Argentina, following an onsite inspection in November 2009, only fully complied with three of the 49 recommendations, the body decided in June not to blacklist it as the country took on reform.

Countries that fail to implement its recommendations run the risk of being labeled as high-risk or uncooperative jurisdictions, thereby making it even more costly and difficult for those nations to do business with the banking systems of FATF members. The FATF’s 34 members include the U.S., Mexico, France and the U.K.

The legislation, according to the Newswires report, also criminalized actions that “affect the economic and financial order” of the country. Critics say the government could use it to pressure the media, businesses and opposition figures, the Newswires report said.