Express SRL in Lima: A Hub for Money Laundering

Lima, Peru - Recent investigations have uncovered a complex web of money laundering activities involving major banking institutions and organized crime groups at Express SRL, a currency exchange house in Lima.

Flaws in Due Diligence and Compliance Procedures

The investigation has exposed serious flaws in due diligence and compliance procedures at BCP and BBVA. Analysis of UIF documents reveals instances where banks warned clients of suspicious transactions, allowing them to hide the source of their funds. For example:

• In one case, Interbank contacted a suspected smuggler who admitted that money came from illegal sales of soy on the Bolivian border.
• BCP holds onto reports on its clients’ suspicious transactions for 10 years, which can become problematic during investigations.

Employee Vetting Process Loopholes

The investigation has also identified loopholes in employee vetting processes. In four cases:

• A BCP employee was found to be a mafia group’s “financial advisor” and received millions of dollars in transfers from Colombia using front men without any financial history or credit.
• A BBVA employee, Sergio Cisneros Francia, was linked to a criminal organization involved in a massive drug shipment operation.

Bank Denials

Both BCP and BBVA have denied any wrongdoing, stating that they maintain high standards in their money laundering prevention systems and comply fully with authorities. However, the investigation has raised serious concerns about the involvement of major banking institutions in organized crime activities and the need for improved due diligence and compliance procedures to prevent further illegal activities.

Consequences

The consequences of these findings are far-reaching and have significant implications for the financial industry as a whole. The investigation highlights the need for:

• Improved due diligence and compliance procedures
• Enhanced employee vetting processes
• Stricter regulations and enforcement mechanisms
• Increased transparency and accountability within the banking sector

The Express SRL case serves as a stark reminder of the importance of vigilance in preventing money laundering activities and upholding financial integrity.