The National Securities Commission of Argentina has ordered a “preventive suspension” for operations at Alchemy Securities SA and Bull Market Brokers, both native financial firms, for bad anti-money-laundering controls and for not meeting the requirements set by the Capital Market Law in their capacities as clearing and settlement agents.

The decision follows on from various inspections that detected problems in Alchemy Securities' books involving a 'cash count' in both pesos and dollars. The regulator says that this stemmed from problems in its internal, technical and administrative compliance organisation and the lack of an appropriate system of internal control.

There was also no audit report on the prevention of money laundering and the financing of terrorism for the year 2014. The regulators also found incomplete and outdated files on clients, betraying the fact that the firm could profile its clients, or their financial circumstances, thereby not being able to ascertain the sources of their funds.

Regarding Bull Market, the regulator found fault with its books in June and July 2015, saying that it failed to update its books and had serious problems with its internal, technical and administrative organisation.

In addition, Bull Market presented incomplete files on selected customers and did not state the origin of their funds. There also seem to have been differences between the information contained in its records and the securities it was holding in foreign currency.

The firm has also been remiss in following the regulations laid down by Argentina's Financial Intelligence Unit. It has failed to audit its plan to prevent money-laundering and to train its staff on the subject. On top of this, the regulator has found fault with the monitoring system it uses to detect suspicious transactions in line with the FIU's wishes. The preventive suspension will be in effect until things improve.

Alchemy Sociedad de Bolsa SA was founded in 1999 and registered on the Stock Exchange of Buenos Aires as a stockbroking firm, moving later into administering the assets of high-net-worth customers, handling real estate and business investments, and giving advice about tax issues, succession and philanthropy.

Argentina, under its left-wing government, appears to be stepping up its efforts against corporate crime. Earlier this month its central bank ordered the more or less immediate removal of Gabriel Martino, the head of HSBC in the country, and deputy head Miguel Angel Estevez from their posts. It suspected them and their bank of consciously helping 4,000 or so HNW clients move money that they had not declared for tax purposes over the Atlantic to Switzerland. Whether this accusation stands up remains to be seen. Ricardo Echegaray, head of Argentina's Federal Administration of Public Revenue, had some harsh words to say about Martino according to the national press. His estimate for the laundered total stands at $3½ billion. HSBC is still functioning normally in the country, albeit under a regulatory cloud.