LIMA’S BANKING SECRETS EXPOSED: LACK OF DUE DILIGENCE AND EMPLOYEE VETTING LEADS TO MONEY LAUNDERING

A recent investigation has uncovered shocking revelations about two major banks in Lima, BCP and BBVA, which have been complicit in money laundering schemes despite warnings from their own internal units. The findings have sparked outrage over the lack of due diligence and employee vetting practices at these institutions.

The Investigation’s Findings

Unreported Suspicious Activity

In 2008, authorities discovered that the Velit family’s currency exchange houses were laundering money for Colombian criminal organizations. Despite this revelation, BBVA did not freeze the Velit Núñez accounts, even when its own money laundering prevention unit sent an alert to the Financial Intelligence Unit (UIF) in October 2006.

Inadequate Action

The investigation also uncovered instances of banks warning clients of suspicious transactions but failing to take adequate action. For example:

• BCP compliance management sent letters to some clients in Lima informing them of unusual transactions and giving them an opportunity to explain.
• However, analysis revealed that most of these clients had no financial history, yet were able to move large sums of money.

Ties to Organized Crime

The UIF documents also exposed cases of banks failing to report suspicious activity. For instance:

• A BCP employee was identified as a mafia group’s “financial advisor,” but the bank failed to take action against him.
• Furthermore, some employees at the banks had ties to organized crime groups. In one case:
  • A BBVA manager was linked to a criminal organization involved in drug trafficking and money laundering.

Denials of Wrongdoing

Both BCP and BBVA have denied any wrongdoing, claiming they maintain high standards in their money laundering prevention systems and comply fully with authorities.

Consequences and Future Regulations

The findings have raised concerns about the integrity of Peru’s financial system and the effectiveness of anti-money laundering measures. The government has vowed to take action against those responsible and to strengthen regulations to prevent such cases from occurring in the future.

Conclusion

The investigation is a stark reminder that corruption and money laundering can occur at even the highest levels of society, and that it is essential for institutions to prioritize transparency and accountability.