Peru’s Tough Stance on Money Laundering: What You Need to Know

In an effort to combat money laundering and terrorist financing, Peru has implemented strict measures to regulate financial institutions’ dealings with Politically Exposed Persons (PEPs). PEPs are individuals or entities that own more than 5% of the capital stock of a legal entity.

Identification and Registration of PEPs

According to Superintendencia de Banca, Seguros y AFP (SBS) Resolution 838-2008, Article 9.2, financial institutions must identify and register PEPs if they exhibit transactional patterns that deviate from their normal profile. The Contraloria General de la República, Peru’s public official supervision agency, also monitors PEPs.

Correspondent Banking Relationships

SBS Resolution 838-2008, Article 11 requires financial institutions to evaluate the risk exposure of correspondent banking relationships and assess the quality of the anti-money laundering (AML) systems in place at the correspondent bank. They must also obtain a certificate confirming that the foreign correspondent bank does not permit shell banks to use its accounts.

Reporting Suspicious Activity

In addition, financial institutions are required to report suspicious activity to the Unidad de Investigación Financiera (UIF-Peru) and implement policies and procedures to prevent or detect unusual operations.

Penalties for Non-Compliance

Failure to comply with reporting requirements can result in penalties outlined in SBS Resolution 1782-2007. Additionally, regulated entities are required to use automated suspicious transaction monitoring technology, known as ROSEL (Requisito de Sistemas Electrónicos para la Lucha contra el Delito), to report suspicious transactions.

Data Protection Laws

Peru does not have specific data protection laws related to AML/ CFT information. However, financial institutions must ensure that customer data is handled in accordance with applicable regulations and standards.

Key Takeaways

• PEPs are subject to enhanced due diligence measures
• Correspondent banking relationships require risk assessment and evaluation of AML systems
• Suspicious activity reports must be made to the UIF-Peru
• Failure to comply with reporting requirements can result in penalties
• Automated suspicious transaction monitoring technology is required
• Data protection laws do not specifically address AML/ CFT information

By understanding Peru’s AML/CFT regulations, financial institutions can ensure compliance and minimize risk in their transactions.