Financial Crime World

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Risk-Based Approach to Anti-Money Laundering in Peru Takes Center Stage

In a bid to combat money laundering and terrorist financing, financial institutions in Peru have been advised to adopt a risk-based approach (RBA) to anti-money laundering (AML). The Financial Action Task Force (FATF) has emphasized the importance of RBA in effectively implementing AML recommendations.

Peru’s Financial Regulators Emphasize Risk-Based Approach

Peru’s Superintendencia de Banca, Seguros y AFP (SBS), the country’s financial regulator, has highlighted the need for a risk-based approach to combating money laundering and terrorist financing. The SBS has urged financial institutions to identify, assess, and understand the risks related to money laundering and terrorist financing to which they are exposed.

Risk Assessment and Mitigation Measures

Financial institutions in Peru have been advised to implement simplified and enhanced due diligence measures based on risk assessments. According to FATF recommendation 1, where higher risks are identified, financial institutions should be required to take enhanced measures to manage and mitigate risks.

Examples of Risk Factors

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Peru’s financial regulators have provided examples of risk factors under various categories:

  • Country or Geographic Risk: Financial institutions should assess the level of money laundering and terrorist financing risk associated with specific countries or regions.
  • Customer Risk: Financial institutions should assess the level of money laundering and terrorist financing risk associated with their customers, based on factors such as their business activities, financial situation, and background.
  • Product or Service Risk: Financial institutions should assess the level of money laundering and terrorist financing risk associated with specific products or services.

AML Case Studies

Recent cases have highlighted the importance of adopting efficient risk-based AML mechanisms. Peru’s financial regulators have emphasized the need for financial institutions to learn from these case studies and implement effective AML measures to mitigate risks.

Training and Accreditation

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To support financial institutions in adopting a risk-based approach to anti-money laundering, training programs are available. These programs provide guidance on RBA procedures and offer certification upon completion. Peru’s financial regulators have emphasized the importance of accreditation and CPD recognition for these training programs.