Financial Crime World

Banking Industry Responds to Financial Crime in Peru

The Peruvian banking industry has been actively working to combat financial crime, particularly money laundering, but challenges persist. In this article, we will explore the efforts made by the banking industry, government agencies, and regulatory bodies to prevent and combat financial crime.

A History of Commitment to Combating Financial Crime

Peru has been at the forefront of international efforts to combat money laundering since signing the United Nations Convention against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances in 1988. The country’s commitment to this cause is evident in its creation of the Financial Intelligence Unit (FIU-Peru) in 2002.

The Role of Government Agencies

Several government agencies play a crucial role in combating financial crime in Peru:

  • Financial Intelligence Unit (FIU-Peru): FIU-Peru was established under Act 27693 in 2002 and has the authority to receive, analyze, and transmit information related to suspicious transactions. It works closely with the Superintendence of Banking and Insurance (SBS) to oversee the country’s banking system.
  • Superintendence of Banking and Insurance (SBS): SBS is responsible for overseeing the country’s banking system and working closely with FIU-Peru to combat financial crime.
  • Public Registry of Peru (National System of Public Registries, SINARP): SINARP provides information to FIU-Peru when needed and is part of the Multisectorial Executive Commission against Money Laundering and Financing of Terrorism (CONTRALAFT).

Banking Industry Measures

The banking industry in Peru has implemented various measures to prevent money laundering, including:

  • Establishing anti-money laundering policies and procedures: Banks have developed policies and procedures to prevent money laundering and ensure compliance with regulations.
  • Conducting customer due diligence and risk assessments: Banks conduct thorough background checks on customers and assess the level of risk associated with their transactions.
  • Reporting suspicious transactions to FIU-Peru: Banks report any suspicious transactions to FIU-Peru, which then investigates and takes necessary action.
  • Cooperating with law enforcement agencies: Banks cooperate with law enforcement agencies to investigate and prosecute financial crimes.

Challenges Persist

Despite these efforts, challenges persist in Peru’s fight against financial crime. The country continues to work towards improving its regulatory framework and strengthening international cooperation to combat money laundering and financing of terrorism.

Conclusion

In conclusion, while Peru’s banking industry has made significant strides in combating financial crime, challenges persist. The country continues to work towards improving its regulatory framework and strengthening international cooperation to effectively address money laundering and financing of terrorism.