Financial Crime World

Financial Institutions Exposed: Case of Money Laundering in Peru

Introduction

A recent case has highlighted the pervasive issue of money laundering in Peru’s financial sector, specifically involving prominent banks such as BCP (Banco Continental Peruano) and BBVA (Banco Bilbao Vizcaya Argentaria). The case involves Army Colonel José Sánchez Marín, who received $11 million in payments into his account after being appointed mayor of the provincial capital of Bagua in Amazonas. This article will delve into the details of this case and others like it.

Case of José Sánchez Marín

  • In 2005, the Financial Intelligence Unit (UIF) first learned about this case through a suspicious transaction report from BCP.
  • However, BCP only provided a few withdrawal checks when asked for older banking information, as it was not required to maintain such records beyond 10 years.
  • The UIF later discovered that Sánchez Marín had remained with BCP until 2008 and made investments in Credicorp, Backus, and Telefónica that could not be supported by his income.

Employee Vetting at BCP and BBVA

  • A UIF report identified a BCP employee in Chimbote, Áncash, as a mafia group’s “financial advisor.”
  • The group injected millions of dollars into the system through irregular transfers from Colombia using dozens of front men without any financial history or credit.
  • This case highlights the vulnerability of these banks to organized crime groups.

Organized Crime Ties

  • Four cases have been identified where BCP and BBVA employees belonged to organized crime groups:
    • A BCP employee in Chimbote was identified as a mafia group’s “financial advisor” and requested information on alleged organized crime members from the Serviban agency in Chimbote.
    • An employee at BBVA collaborated with the group behind Global Trade Import and Export and helped them with legal procedures to set up their company.
    • The Attorney General’s Office opened an investigation against a criminal organization comprised of more than 100 people for allegedly laundering illicit profits through successive deposits and transfers in the financial system.

History of Relationships between Bankers and Organized Crime

  • These cases are not isolated incidents, as relationships between bankers and organized crime date back further than the 2010s.
  • A BCP employee was investigated for money laundering in 2001, and another official left his post after being investigated for money laundering in Operation Car Wash case.

Response from Banks

  • Both BBVA and BCP stated that they maintain high standards in their money laundering prevention systems and comply fully with authorities.