Peru Implements Beneficial Ownership Requirements

Enhancing Transparency and Tackling Money Laundering

Introduction

In a move aimed at enhancing transparency and tackling money laundering, Peru’s Ministry of Economics has issued Supreme Decree 003-2019-EF. This decree introduces regulations on disclosing ultimate beneficial ownership of entities.

Background

The decree follows the enactment of Legislative Decree 1372 on August 2, 2018. This legislation requires entities to report and identify individuals who hold a minimum of 10% of their capital as ultimate beneficial owners to the Peruvian Tax Authority.

Applicability of Regulations

The regulations outlined in Supreme Decree 003-2019-EF apply to various types of entities, including:

• Funds: investment funds, trusts, foreign trusts with a Peruvian administrator
• Joint Ventures: partnerships and other business associations
• Non-Peruvian Entities: must meet one of the following conditions:
  • Have a branch or permanent establishment in Peru
  • Be managed by a Peruvian administrator, either an entity or an individual
  • Have a Peruvian resident as one of its parties

Requirements for Entities

Entities are required to implement specific mechanisms to obtain and keep updated information on their ultimate beneficial owners. If it is not possible to determine the ownership, directly or indirectly, the individual holding the highest administrative position will be deemed the ultimate beneficial owner.

Submission of Information

The Peruvian Tax Authority will establish a deadline for filing the information, which must be completed by the ultimate beneficial owner and submitted by the entity to the tax authority.

Benefits of Implementation

By implementing these regulations, Peru aims to increase transparency and prevent money laundering activities. The decree is seen as an essential step in enhancing the country’s compliance with international standards on anti-money laundering and combating the financing of terrorism (AML/CFT).