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Banks and other financial entities are regulated in Argentina by the Law on Financial Entities (the LEF), which applies to any person who carries out, on a regular basis, intermediation activities between the supply and demand of financial resources. To operate as a financial entity under the LEF, a person must be licensed by, and comply with the regulations of, the Argentine Central Bank. Intermediary services between the supply and demand of financial resources cannot be carried out without this authorization.
The LEF and the implementing Central Bank rules establish a system under which the operations permitted to local financial entities are directly or indirectly specified, and regulated in detail by the Central Bank.
The LEF and the related Central Bank rules also stipulate a number of transactions that are expressly banned, and others that are characterized as restricted, that is, that are forbidden unless certain conditions are met or the Central Bank provides special authorization.
Foreign exchange trading and transacting on a regular basis may only be carried out by entities duly authorized by the Central Bank.