The Wasps ace was sent off in the fifth minute of England's 27-14 victory over the Pumas after he tackled Leanardo Senatore in the air, a challenge that meant the Argentina forward was not able to continue.
The 24-year-old, who was making just his eighth appearance for Eddie Jones' side, has since accepted that he was in the wrong for making the challenge, and World Rugby's Disciplinary Committee have confirmed they took that acknowledgement into account when handing out the three-week ban.
A statement from World Rugby's Disciplinary Committee read: "Mr Daly accepted that he had committed an act of foul play and that it warranted a red card.
"Accordingly, the Disciplinary Committee, chaired by Kathrine Mackie (Scotland), alongside Derek Bevan (Wales) and Hugo Southwell (Scotland), considered what would be the appropriate sanction.
"Mr Daly is therefore suspended from playing rugby for a total of three weeks, up to and including Sunday 18 December 2016."
Daly will now miss England's final autumn international against Australia on Saturday, while he will also sit out Wasps’ home and away matches against Connacht in the European Rugby Champions Cup.