Milei Enacts Law to Draw Undeclared Dollars Into Banks

Overview

• The law, published Friday in the Official Gazette, lifts tax-evasion prosecution thresholds to roughly US$70,000 per fiscal year, shortens limitation periods for financial crimes, and creates a regime that exempts enrollees from reporting patrimonial changes.
• The policy targets an estimated US$251 billion in undeclared cash held by Argentines, a sum about six times the Central Bank’s gross reserves of US$41 billion as the country faces more than US$19 billion in debt maturities.
• Economy Minister Luis Caputo told banks to accept deposits under the new regime immediately and directed savers to state-run Banco Nación if private banks impose extra requirements.
• Caputo said dollars deposited under the program become available for immediate use or interest-earning savings, reflecting the government’s push for quick liquidity.
• Opposition figures warned of money-laundering risks, with lawmaker Jorge Taiana saying the change would create a haven for laundering, while the government also freed more than US$20 billion from 2024 regularization accounts for use starting Friday.