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LATIN AMERICA ADVISOR

Financial AMERICA ADVISOR

A daily publication Of the dialogue

June 4, 2025

Will Argentina See the Return of Hidden Cash?

Argentine President Javier Milei wants reforms to encourage savers to plow hidden cash into the country’s formal economy. // File Photo: @OPRArgentina via X.

Q

  • Argentine President Javier Milei on May 22 proposed sweeping reforms of the country’s tax system in an effort to bring some $271 billion in hidden cash into the formal economy. Economic turbulence, strict capital controls and unpredictable tax code changes over the past several years have led Argentines to hide money in safe deposit boxes, accounts overseas and at home. Under the proposed new rules, bank transfers of less than 50 million pesos ($43,700) will no longer have to be reported to tax authorities, far above the current threshold of 1 million pesos. Under the changes, the tax authority will also eliminate a requirement that Argentine’s declare their assets. What could result from Argentina loosening tax evasion laws? How much will the move benefit citizens, the government and the financial services sector? To what extent might relaxed restrictions lead to more money laundering?

A

Thomas F. Morante, partner, and Barbara Efraim, attorney, both at Pierson Ferdinand: “President Milei’s Plan de Reparación Histórica de los Ahorros de los Argentinos (‘plan colchón’) is a two-part strategy designed to grow the economy. The initiative was launched administratively through a presidential decree relaxing several financial reporting requirements. The second phase involves enacting proposed legislative changes to Argentina’s tax and penal codes to facilitate repatriation of foreign capital, reduce tax burdens and encourage compliance. The impact of the plan likely will take years to fully appreciate. The administrative phase, effective upon President Milei signing the decree, raises the financial reporting requirements…”

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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

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board of advisors

Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

Richard Child
CEO,
Mattrix Group

Michael Diaz
Partner,
Diaz, Reus & Targ, LLP

Ernesto Fernández Holmann
Chairman of the Board,
Ayucus

Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial

Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

Thomas Morante
Attorney,
Carlton Fields

Manuel Orozco
Senior Fellow,
Inter-American Dialogue

Adalberto Palma Gómez
Senior Partner,
Aperture SC

Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law

Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI

Mario Trujillo
CEO,
DolEx Dollar Express

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