Case Study: Army Official’s Suspicious Banking Activity

Introduction

In 2008, the Peruvian banking system was scrutinized for its role in facilitating illicit activities. One notable case involved a high-ranking army official, Army Colonel José Sánchez Marín (now retired), who allegedly received $11 million in payments to his account after being appointed mayor of Bagua, the provincial capital of Amazonas.

Background

• The UIF (Unidad de Inteligencia Financiera) first discovered the suspicious activity of Army Colonel José Sánchez Marín in a report from BCP (Banco Continental Peruano) in 2005.
• The UIF requested older banking information, suspecting that the military official may have irregularities in his banking history dating back to his term as mayor in the same city during the 1990s.

Investigations and Findings

• BCP responded that it was not required to maintain information for longer than 10 years and only provided a few withdrawal checks.
• The UIF later learned that Army Colonel José Sánchez Marín remained with BCP until 2008, when the bank issued another report on him.
• Before the first suspicious report in 2005, the army official had made investments in Credicorp, Backus, and Telefónica that could not be supported by his income. He then let the money sit until he withdrew a portion in 2005. Afterwards, he invested that money in a mutual fund with Credifondo, which was reported because the amounts of those transactions could not be supported either.

Concerns about Banking System Integrity

• The UIF documents raised concerns about whether the financial system has fulfilled its requirement to maintain a high level of integrity in its personnel.
• BCP employees have been implicated in organized crime groups, casting doubt on the bank’s commitment to upholding financial regulations.