Milei’s Fiscal Innocence Law Aims To Lure Argentina’s Hidden Dollars Into Banks

Key Points

1. Law 27.799 targets an estimated $251 billion in undeclared cash savings as reserves sit near $41 billion and 2026 debt maturities exceed $19 billion.
2. It lifts criminal-evasion thresholds, shortens some limitation periods, and offers a one-time “pay-first” exit before a criminal complaint is filed.
3. Caputo is urging banks to take deposits quickly; opponents warn of laundering, making AML enforcement the decisive safeguard.

Argentina has enacted the “fiscal innocence” reform, Law 27.799, published in the Official Gazette on January 2, 2026, after Congress approved it on December 26, 2025.

Officials estimate “dollars under the mattress” at about $251 billion—around six times the central bank’s gross reserves, $41 billion on December 30, 2025. Argentina must also meet more than $19 billion in debt maturities in 2026.

The IMF, under a $20 billion program agreed in April, pressed the government in December to rebuild international reserves. The reform raises the minimum amounts that can trigger criminal investigation for tax evasion and reduces some prescription periods.

It adds a procedural incentive: if a taxpayer fully pays what is owed before the tax authority files a criminal complaint, criminal action can be extinguished—generally once per person or entity.

Argentina eases tax rules to pull dollars back into banks

To prevent inflation from eroding thresholds, key amounts are set for annual updates using the UVA index starting January 1, 2027.

It also tries to simplify compliance. Under the restructured tax authority ARCA, a simplified income-tax regime can present a pre-filled return based on state data; if the taxpayer accepts and pays, the year gains stronger closure unless later red flags emerge.

Economy Minister Luis Caputo has told banks to accept deposits and directed savers to state-owned Banco Nación if private lenders demand excessive documentation.

He promises depositors immediate access to their dollars, for spending or for earning interest. Milei’s 2024 regularization drive reportedly brought more than $20 billion into special accounts, now released for use.

Opponents, including Peronist lawmaker Jorge Taiana, argue the changes could turn Argentina into a haven for dirty money.

Yet banks still operate under anti–money-laundering rules, meaning origin-of-funds checks remain mandatory. The law’s success will be measured in deposit flows and confidence—without a compliance backslide.

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