Financial Crime World

Peru’s Corruption Epidemic: Police Involvement in Illicit Activities Highlights Broken System

Introduction

Lima, Peru - A shocking exposé has revealed that Peru’s law enforcement agencies have been accused of providing security services to criminal organizations involved in illegal activities such as drug trafficking, timber trafficking, and human smuggling. The COVID-19 pandemic has exacerbated corruption in several parts of the country, with many criminal groups taking advantage of the crisis to expand their operations.

Criminal Activity

  • Mafia-style groups have significant control over certain regions, including Loreto and Ucayali, where they primarily engage in timber trafficking.
  • The VRAEM area is controlled by drug traffickers and the Shining Path guerrilla group.
  • Foreign criminal groups, including Balkan mafias, Venezuelan networks, Italian mafia, Colombian, Mexican, and Ecuadorian cartels, are also operating in Peru.

Collaboration with Criminal Actors

  • Companies collaborate with criminal actors in certain criminal markets, such as:
    • Illegal trade of gold: criminal groups rely on legal businesses within the mining industry, as well as local businesses.
    • Illegal logging: legal transport companies are employed to move the products and are provided with fake documentation of the woods’ origin.

Political Leadership

  • Peru’s political leadership has been plagued by instability, with the current president facing widespread opposition and criticism following her appointment.
  • The lack of democratic legitimacy in the executive and legislative branches of government has led to protests and calls for all politicians to step down.

Judiciary

  • The judiciary has demonstrated impressive levels of independence and resilience in high-profile cases, making it possible to investigate and prosecute a number of very high-level politicians.
  • However, this seems not to be a deterrent to corruption in the country, as numerous political elites have faced allegations of corruption and human rights violations.

International Cooperation

  • Peru is actively engaging in international cooperation efforts to combat corruption and organized crime.
  • The country has entered into several extradition treaties, and compliance with these procedures are generally observed.

Challenges

  • Many of Peru’s laws are not adequately enforced, and criminal procedures tend to be weak and slow.
  • The country’s prisons are overcrowded, a substantial problem across the nation.
  • Extortion is also a significant issue, with organized crime particularly prevalent on the north coast of Peru.
  • Journalists in Peru face judicial harassment, physical and verbal abuse by political activists, and inadequate protection despite press freedom guarantees.
  • Environmental defenders have been killed by actors linked to drug trafficking, illegal logging, and mining, leading to human rights abuses.

Response

  • The Ministry of Interior has introduced a Guide for the Prevention of Organized Crime, aimed at reinforcing the fight against criminal organizations and promoting citizen safety.
  • However, the effectiveness of initiatives to prevent crime is hindered by sporadic implementation, lack of inter-institutional coordination, and limited resources.

Conclusion

As Peru struggles to combat corruption and organized crime, it is clear that a comprehensive approach is needed to address these issues. The government must prioritize investigations, increase resources to strengthen the operational and management capacity of the Public Prosecutor’s Office, and provide adequate protection for journalists and human rights defenders.