Uruguay
5 regulators · 15 laws & regulations · 7 obligations
Uruguay, with its official name of the Oriental Republic of Uruguay, is an established and very developed state in the southeastern part of South America.
Overview
Uruguay, with its official name of the Oriental Republic of Uruguay, is an established and very developed state in the southeastern part of South America. With its 3.5 million citizens mostly living in the capital city of Montevideo, the country can serve as a model state for its region. In its economic sphere, Uruguay greatly depends on agribusiness, which constitutes around 70% of its export products, and functions within a favorable and open economic environment for foreign direct investments in specialized free trade zones. After the national elections, the government under the leadership of President Yamandú Orsi works in the context of a very developed and established democracy.
From the viewpoint of governance, Uruguay is known to be one of the most transparent and stable democracies in the Americas region. This country has the best record of the observance of the rule of law and the least corruption in Latin America, due to its competent and independent judiciary. Nevertheless, the present political environment necessitates the need for consensus-oriented decision-making because of the absence of a majority in parliament. Thus, while classical issues of governance are handled excellently, new ones involve the handling of child poverty in certain regions, regional integration with the Mercosur organization, and social security.
Concerning risk compliance, Uruguay’s strong institutions provide a safe setting for conducting business, with low chances of corporate insolvencies and defaults. Despite its solid foundations, the nation suffers from several weaknesses that may become crucial in operations and finance. First of all, more than 70% of the national deposits in the banking system are dollarized, which leaves Uruguay vulnerable to economic and monetary changes in the region. More importantly, Uruguay has been experiencing problems in terms of public security. The nation’s vulnerable borders, along with Montevideo – an important port – have increasingly been used as a transit point for smuggling narcotics to Europe by transnational criminal organizations.
In order to combat the emerging difficulties, the government takes action to implement its revised AML/CFT national strategy. Risk-based compliance programs are to be adopted by financial institutions and reporting entities, extensive Customer Due Diligence is to be practiced, and suspicious activity should be reported. The regulatory landscape remains open for more predicate offenses such as cybercrimes, environmental crimes, and cross-border frauds. Moreover, the country is not placed on the FATF List of countries with strategic weaknesses in AML measures. In the sphere of international sanctions, Uruguay is unsanctioned. At present, there are no multilateral or unilateral international sanctions imposed against the country, its core sectors, and sovereign bodies.
Industry compliance
Essential obligations
All obligations →| Obligation | Timing | Regulator | Source | Detail |
|---|---|---|---|---|
| Do not dismiss or discipline harassment complainants or witnesses | Presumption applies for 180 days after a complaint | MTSS | source | |
Art. 12 of Ley 18.561 bars dismissal or discipline of the affected worker and witnesses for their involvement. Dismissals or sanctions within 180 days of a complaint are presumed retaliatory unless the employer proves otherwise. |
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| Identify and register beneficial owners with the BCU registry | Changes reported within 45 days (90 days where non-resident owners are involved) | — | source | |
Art. 23 requires resident entities to identify their beneficial owners, and art. 24 extends this to non-resident entities with a permanent establishment, effective management in Uruguay or assets there above 2,500,000 indexed units. Art. 25 requires issuers of nominative shares to tell the BCU who holds them, and art. 29 requires beneficial owners and the ownership chain to be declared to the BCU registry. Art. 26 requires supporting documents to be kept, and art. 30 requires changes to be reported within 45 days, or 90 days where non-resident owners or chain members are involved. |
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| Notify the URCDP of personal data security breaches | Within 72 hours of becoming aware | URCDP | source | |
Art. 4 requires the controller to inform the URCDP within a maximum of 72 hours of learning of the breach, and to tell data subjects in clear language where their rights are significantly affected. The processor must inform the controller immediately. A final report on measures taken is due once the breach is resolved; art. 3 requires steps to limit impact within the first 24 hours. |
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| Prevent and sanction sexual harassment, keep complaints confidential and publicise a policy | — | MTSS | source | |
Art. 6 of Ley 18.561 requires employers to adopt measures to prevent and sanction sexual harassment, keep complainants' and witnesses' identities and proceedings confidential, protect victims' physical and psychological integrity, and publicise an anti-harassment policy. Art. 5 gives the Inspección General del Trabajo y de la Seguridad Social oversight of compliance. |
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| Customer due diligence including beneficial owners | At onboarding and ongoing | — | source | |
Art. 14 requires policies to identify and know clients, including the beneficial owner, and bans anonymous and fictitious-name accounts. Art. 15 requires identity checks from reliable independent sources and sets beneficial ownership at 15% of capital, voting rights or other control. Art. 16 lets entities scale measures by risk under a written risk analysis, requires verification before or during the relationship, and bars starting or continuing a relationship if due diligence cannot be applied. Art. 19 requires enhanced scrutiny of higher-risk situations, including politically exposed persons (defined in art. 20), legal persons with bearer shares and trusts. |
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| Do not retaliate against employees who report breaches to the BCU, and protect their identity | — | — | source | |
Art. 3 of Ley 17.613 treats retaliation against employees of BCU-supervised financial intermediaries who report violations of banking laws, decrees, BCU general rules or specific instructions as an infraction, with measures under art. 20 of Decreto-Ley 15.322, and leaves the employer liable under civil and labour law. The existence of the report and the reporter's identity fall under the duty of secrecy (arts. 22 and 23 of Ley 16.696). |
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| No obligations match these filters. | ||||
Quick links — official sites
- URCDP — Unidad Reguladora y de Control de Datos Personales
- AGESIC — Agencia de Gobierno Electrónico y Sociedad de la Información y del Conocimiento
- JUTEP — Junta de Transparencia y Ética Pública
- MTSS — Ministerio de Trabajo y Seguridad Social
- SENACLAFT — Secretaría Nacional para la Lucha contra el Lavado de Activos y el Financiamiento del Terrorismo
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