Name
Global FinTech Guide
Country _ Name
Uruguay
SectionTitle
KYC requirements
Body
The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.

Legal affairs

National regulatory framework regarding AML and effective date of the regulations

  1. Anti-Money Laundering Law No. 19,574, effective as of January 10, 2018.
  2. Decree No. 379/018, effective as of November 20, 2018. 
  3. Financing of Terrorism Law No. 19,749, effective as of May 29, 2019.
  4. Decree No. 136/019, effective as of May 29, 2019.
  5. Financial System´s Control and Regulatory Regulations issued by the CBU; current AML sections effective as of November 23, 2018.

National regulator or relevant authority for AML controls

The main regulator for AML controls is the Anti-Money Laundering and Terrorism Financing Secretary. However, in the financial sector, the CBU, acting through the UIAF (Unit of Financial Information and Analysis) also plays an important role.

Customer Due Diligence

Conduct of a typical KYC identification process

The due diligence process varies in scope depending on which is the entity performing the due diligence. In certain cases, the face-to-face identification is required. In other cases, it is sufficient to obtain and verify certain personal and business information. However, minimum standards for KYC identification process include obtaining the following data:

  1. For natural persons:
    • Full name and last name.
    • Place and date of birth.
    • Identification document and number.
    • Tax identity number.
    • Civil status.
    • Domicile and phone number.
    • Profession.
    • Income.

  2. For legal entities:
    • Name.
    • Date of incorporation.
    • Domicile and phone number.
    • Tax identity number.
    • Tax identity number.
    • Articles of incorporation and good standing certificate.
    • Income.
    • Corporate structure.
    • Compliance with Ultimate Beneficial Owners Law No. 19,484.

Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations

Yes, with the authorization of the CBU, either prior, express or tacit, provided that certain requirements are met. However, regulated entities shall at all times hold the ultimate responsibility for the proper identification and knowledge of their customers, and shall verify the proper application of their due diligence procedures by the third party who takes care of the process. In any case, regulated entities are still obliged to have their own Compliance Officer, regardless of whatever service a third party may provide. 

Furthermore, third-party services may not be used to monitor accounts and transactions for the purpose of detecting unusual or suspicious patterns in customer behaviour.

Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)

Yes. Certain financial regulated entities are allowed to outsource customer due diligence obtaining prior authorization from the regulator (and shall hold the final responsibility); others may only outsource the due diligence on parties who are obliged by law to meet AML regulations.

Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence

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