Peru Grapples with Widespread Financial Crimes: A Growing Concern
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Peru’s government has announced plans to bolster its Financial Intelligence Unit (UIF) to tackle the menace of financial crimes. The agency will now have broader powers to supervise individuals and organizations suspected of money laundering and terrorist financing. But how severe is the problem, and will these measures be enough to stem the tide?
The Scale of the Problem
According to estimates, between January 2007 and March 2016, approximately $13 billion in assets from illicit drug trafficking, illegal mining, and crimes against public administrations were laundered. The majority of these funds came from drug trafficking, accounting for 42% of the total.
New Measures to Combat Financial Crimes
The new measures aim to address this problem by granting the UIF access to tax and banking secrets through a judge’s order. Additionally, the agency will be able to share intelligence on crimes with the prosecutor’s office, including kidnapping, extortion, and corruption.
- Granting the UIF access to tax and banking secrets through a judge’s order
- Allowing the agency to share intelligence on crimes with the prosecutor’s office
- Supervising new sectors, including:
- Credit- and debit-card processing companies
- Lawyers, accountants, real estate agents, travel agencies, and lodging establishments
Experts’ Perspective
While experts welcome these developments, they caution that more needs to be done to formalize commercial transactions in Peru and increase state presence in areas where illegal activities thrive.
“Promoting formalization of commercial transactions in the country and the presence of the state in areas where informal mining is developed and drugs are produced and marketed is necessary,” said Fernando Castañeda, a partner at Diaz, Reus & Targ LLP.
Cooperation Across Government Branches
Experts acknowledge that combating corruption and money laundering requires cooperation across all branches of government. “Only the cooperation of Peru’s executive, legislative, and judicial branches of government in eradicating corruption, money laundering, and terrorist financing will produce real changes,” Castañeda emphasized.
Conclusion
As Peru continues to grapple with financial crimes, these measures offer a glimmer of hope in the fight against these pervasive problems. But only time will tell if they are enough to stem the tide of illicit funds flowing into the country’s economy.