PERU BANKS UNDER SCRUTINY OVER COMPLIANCE WITH INTERNATIONAL MONEY LAUNDERING LAWS

Lima, Peru - August 2022

Peru’s banks are facing increased pressure to ensure compliance with the Bank Secrecy Act (BSA) and anti-money laundering regulations following a series of high-profile money laundering scandals.

Background on the Issue

The Office of the Comptroller of the Currency (OCC), which regulates national banks in the United States, has been conducting regular examinations of Peruvian banks to determine compliance with the BSA. The agency’s implementing regulations are found at 12 CFR 21.11 and 12 CFR 21.21.

Key Requirements

• Establish programs to monitor and report suspicious activity
• Keep records of cash transactions exceeding $10,000
• File reports of cash transactions that may be indicative of money laundering

Peruvian Banks’ Handling of High-Risk Customers and Transactions

Several Peruvian banks have faced criticism for their handling of high-risk customers and transactions. In recent years, several Peruvian banks have been accused of turning a blind eye to suspicious transactions, allowing millions of dollars to flow through their systems without proper oversight.

Government Response

In response to growing concerns about money laundering in Peru, the government has established a task force to combat financial crimes. The task force is working with international partners to strengthen regulations and enforcement mechanisms to prevent money laundering and terrorist financing.

Challenges Faced by Peruvian Banks

Peruvian banks have been slow to adopt best practices for anti-money laundering compliance, according to industry experts. “Many Peruvian banks are still using outdated systems and processes that make it difficult to detect and prevent money laundering,” said a banking analyst.

Consequences of Non-Compliance

Peruvian banks face stiff penalties for non-compliance with anti-money laundering regulations, including fines, reputational damage, and loss of business.

“We expect all Peruvian banks to take their responsibilities seriously and ensure that they are in compliance with international money laundering laws.” - OCC Spokesperson