Peru Takes a Stand Against Financial Crimes
Peru has introduced new measures to combat money laundering and crimes related to terrorism by strengthening its Financial Intelligence Unit (FIU). The agency will now have greater authority to tackle financial crimes, including requesting judges to lift bank and tax secrecy provisions when necessary.
A Nation Challenged
According to experts, Peru faces a significant challenge in tackling financial crimes. Between 2007 and 2016, an estimated $13 billion in assets were laundered, primarily from illicit drug trafficking, illegal mining, and crimes against public administrations.
The New Measures
Peru’s government aims to improve on previous efforts by:
- Expanding the FIU’s powers
- Creating a Centralized Organization for the Prevention of Money Laundering and Terrorist Financing
However, experts warn that the success of these initiatives will depend on cooperation between Peru’s executive, legislative, and judicial branches in eradicating corruption, money laundering, and terrorist financing.
Key Vulnerabilities to Be Addressed
- Formalization of commercial transactions in the country
- Presence of the state in areas where informal mining is developed and drugs are produced and marketed
- Cooperation between government branches to combat corruption and financial crimes
Peru’s efforts to strengthen its financial intelligence unit come as a response to growing concerns about money laundering and terrorist financing in the region. The country’s success in implementing these measures will be closely watched by international observers.
Analysis
Fernando Castañeda, partner at Diaz, Reus & Targ LLP, Lima Office, notes that “the expansion of powers described and the creation of the Centralized Organization for the Prevention of Money Laundering and Terrorist Financing can improve on the results of the past. However, it is necessary to promote the formalization of commercial transactions in the country, and the presence of the state in the areas where informal mining is developed and drugs are produced and marketed.”
Only time will tell if Peru’s new measures will be effective in tackling financial crimes. But one thing is certain: the fight against money laundering and terrorist financing requires a collaborative effort from all stakeholders involved.