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Peru Tightens Regulations on Financial Crime Prevention

Lima, Peru - In a bid to strengthen its financial system and prevent illicit activities, the Peruvian government has made significant updates to its regulatory framework on financial crime prevention. The move is in line with international standards set by the Financial Action Task Force (FATF), an inter-governmental body that sets policies for combating money laundering and terrorist financing.

Key Areas of Regulatory Update

The Peruvian government has updated its regulations on several key areas, including:

• Risk Assessment and Customer Due Diligence: Financial institutions in Peru will now be required to conduct thorough risk assessments and implement robust customer due diligence measures to prevent money laundering and terrorist financing.
• National Cooperation and Coordination: The government has strengthened its national cooperation and coordination mechanisms to enhance the effectiveness of financial crime prevention efforts.
• Confiscation and Provisional Measures: Peruvian authorities have enhanced their powers to confiscate assets related to financial crimes and introduce provisional measures to prevent the dissipation of assets.

Compliance with FATF Recommendations

The report highlights Peru’s compliance with several FATF recommendations, including:

• R.1: Assessing risk & applying a risk-based approach (compliant)
• R.2: National cooperation and coordination (compliant)
• R.3: Money laundering offence (compliant)
• R.4: Confiscation and provisional measures (compliant)
• R.5: Terrorist financing offence (compliant)

Areas for Improvement

While Peru has made progress in implementing FATF recommendations, there are areas where the country still needs to improve, including:

• Non-Profit Organizations: Peruvian regulations on non-profit organizations require further improvement to prevent abuse and ensure effective supervision.
• Financial Institution Secrecy Laws: The country’s financial institution secrecy laws need to be updated to align with international standards and facilitate cooperation in financial crime investigations.

Conclusion

The regulatory updates in Peru demonstrate a commitment to strengthening its financial system and preventing illicit activities. While there are areas for improvement, the country has made significant progress in implementing FATF recommendations and enhancing its regulatory framework.