William Acosta for Poder & Dinero and FinGurú
Argentina faces persistent and complex challenges in its fight against money laundering, stemming from both structural weaknesses and contextual realities. These challenges limit the effectiveness of anti-money laundering policies and expose the country to significant financial and reputational risks (La Nación, 2024; Infobae, 2025).
Main structural challenges
Large informal economy
The informal economy in Argentina represents approximately one third of GDP, with labor informality rates exceeding 42% and affecting more than 9 million people, according to recent official data (La Nación, 2025; Infobae, 2025a; ILO, n.d.). This high level of informality allows criminal actors to move and conceal illicit funds beyond the reach of formal regulatory oversight (Scielo, 2024).
Porous borders and geographical vulnerabilities
The country's extensive land and maritime borders, especially in the Triple Frontier with Brazil and Paraguay, facilitate cross-border smuggling, trade-based money laundering, and the movement of cash and illicit goods. This region is considered a key hub for money laundering and financing of organized crime and terrorism (Infobae, 2021; Infobae, 2025b).
Cash-intensive economy
The widespread use of cash, including U.S. dollars, complicates the tracking of financial transactions and increases vulnerability to money laundering. Capital flight and the preference for holding assets abroad or in cash further complicate efforts to monitor and control illicit financial flows (Infobae, 2025a).
Limited resources and capacities
Argentinian anti-money laundering authorities face significant limitations in material, technological, and human resources, which restrict their ability to implement and enforce robust anti-money laundering measures. The Financial Information Unit (UIF) and other supervisory agencies are often underfunded relative to the magnitude of the challenge (La Nación, 2024).
Contextual and policy challenges
Regulatory and legal gaps
Recent policy changes have weakened anti-money laundering controls, such as raising the threshold for reporting the origin of funds and eliminating the requirement to report suspicious transactions for high-value transactions. These regulatory setbacks contradict international recommendations and reduce the effectiveness of the Argentine legal framework (La Nación, 2024).
Incomplete understanding of risk
Authorities have a growing but uneven understanding of money laundering risks, especially those arising from informality, corruption, and new technologies. There are gaps in sectoral risk assessments, particularly in real estate, virtual assets, and providers of professional services (Scielo, 2024).
Poor enforcement and low conviction rates
Despite some progress, the number of convictions for money laundering remains low relative to the magnitude of the problem, and most cases involve simple schemes rather than complex, high-value operations. Efforts to confiscate assets are modest, and the recovery of illicit profits moved abroad is limited (La Nación, 2024).
Corruption and political risks
Corruption, both national and transnational, remains a major crime and a significant obstacle to effective money laundering prevention enforcement. Organized crime has infiltrated segments of the police, the judiciary, and some legislators, creating protection networks that hinder investigations. Corrupt officials at all levels protect criminal networks in exchange for economic or political benefits, as evidenced in the case of Jorge Omar Castillo, where local authorities facilitated the operation of La Salada for years. Corruption within government institutions allows for the destruction of evidence, the concealment of illicit operations, and the diversion of resources intended for anti-money laundering efforts (Infobae, 2025b).
International and regional dimensions
Argentina's anti-money laundering regime is under scrutiny by international bodies such as the Financial Action Task Force (FATF/GAFI), which has highlighted critical deficiencies and the risk of being placed on the "gray list" if improvements are not made. The country's vulnerabilities have regional implications, as illicit financial flows often cross borders and involve neighboring countries (Infobae, 2025b).
Iconic example: Jorge Omar Castillo and La Salada
The case of Jorge Omar Castillo, known as "The King of La Salada," illustrates how Argentina's structural and contextual challenges facilitate large-scale money laundering. La Salada is the largest informal market in Latin America, with tens of thousands of stalls and revenues exceeding those of major shopping malls in Buenos Aires. The business relies on the informal economy: stall rentals, cash transactions, and parking management, all outside fiscal control. Castillo and his network used at least 89 commercial entities and more than 160 people to channel and launder millions of dollars, entering cash into the financial system through shell companies and fake invoicing. In May 2025, following years of investigation and more than 60 raids, Castillo was arrested along with his family and associates, charged with money laundering, tax evasion, smuggling, and organized crime. Documentation, financial records, and cash were seized, evidencing capital laundering maneuvers amounting to millions. The case exposed the political and judicial protection that allowed the growth of La Salada's empire, as well as the collusion with local actors and "barrabravas" for territorial control and illegal revenue collection. Additionally, the existence of clandestine workshops producing for the market, with situations of human trafficking, forced labor, and tax evasion, multiplies the social and criminal impact of the phenomenon (Derecha Diario, 2025).
Importance of federal and provincial collaboration
The fight against money laundering and organized crime in Argentina requires effective collaboration between the federal government and provincial governments. National coordination committees and programs exist to articulate strategies and policies between the Nation and the provinces. The UIF leads national coordination and oversees the implementation of standards, in addition to strengthening its presence in provinces with regional offices and specific training for local governments. Collaborative work and information exchange between the Nation, provinces, and municipalities are key to investigating complex criminal networks and closing the circuits of impunity exploited by criminal networks (Infobae, 2025b).
Conclusion
Money laundering in Argentina represents a systemic threat that undermines justice, the economy, and governance in the country. The case of Jorge Omar Castillo and La Salada exposes how these structural and contextual weaknesses are exploited by large criminal networks to launder money on an industrial scale. Systemic corruption at all levels of government—from local officials to national instances—constitutes the main obstacle to effective investigations, protecting criminal networks and weakening key agencies like the UIF. Addressing these issues requires not only technical reforms and sustained political will but also effective, articulated, and federal collaboration between the national government and provincial governments, ensuring a comprehensive and coordinated response to organized crime and the protection of the financial system and communities.
References
Derecha Diario. (2025). Jorge Castillo and his network fell: mega-operation for money laundering and evasion in La Salada. Retrieved from https://derechadiario.com.ar/us/argentina/jorge-castillo-and-his-network-fell-in-a-mega-operation-for-laundering-and-tax-evasion
Infobae. (2021). The Triple Frontier is a key hub for money laundering and terrorism financing. Retrieved from https://www.infobae.com/america/2021/12/02/la-triple-frontera-es-un-nucleo-clave-para-el-lavado-de-dinero-y-el-financiamiento-del-terrorismo/
Infobae. (2025a). Labor informality reached a record: there are already more than 8 million workers in the black economy. Retrieved from https://www.infobae.com/economia/2025/03/29/la-informalidad-laboral-alcanzo-un-record-ya-hay-mas-de-8-millones-de-trabajadores-en-negro/
Infobae. (2025b). Corruption, weak borders, and organized crime: the breeding ground that feeds Hezbollah's influence in Latin America. Retrieved from https://www.infobae.com/america/america-latina/2025/03/31/corrupcion-fronteras-debiles-y-crimen-organizado-el-caldo-de-cultivo-que-alimenta-la-influcencia-de-hezbollah-en-america-latina/
La Nación. (2024). Money laundering: convictions, seizures, and Argentina’s challenges. Retrieved from https://www.lanacion.com.ar/politica/lavado-de-dinero-condenas-decomisos-y-los-desafios-de-la-argentina-nid15032024/
La Nación. (2025). More than 9 million people work in informality in Argentina. Retrieved from https://www.lanacion.com.ar/economia/mas-de-9-millones-de-personas-trabajan-en-la-informalidad-en-la-argentina-nid14042025/
ILO. (n.d.). Informal economy in Argentina. Retrieved from https://www.ilo.org/es/media/105276/download
Scielo. (2024). Informality and poor workers in Argentina (2003-2023). Retrieved from http://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S2448-718X2024000400809
About the Author:
William L. Acosta graduated Magna Cum Laude from PWU and Alliance University. He is a retired NYPD officer, as well as the founder and CEO of Equalizer Private Investigations & Security Services Inc., a licensed agency in New York and Florida with international reach.
Since 1999, he has led investigations into drug cases, homicides, and missing persons, in addition to participating in criminal defense at both state and federal levels. A specialist in international and multijurisdictional cases, he has coordinated operations in North America, Europe, and Latin America.
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