Financial Crime World

Peru Fails to Meet International Standards on Anti-Money Laundering

Peru’s Struggles with Money Laundering and Terrorist Financing Exposed by FATF Report

A recent evaluation by the Financial Action Task Force (FATF) has revealed significant gaps in Peru’s efforts to combat money laundering and terrorist financing. The report, released last year, assessed the country’s compliance with international standards for anti-money laundering (AML) regulations.

Key Findings of the FATF Report

  • Poor risk assessment: Peru scored poorly on its ability to assess and mitigate risks associated with money laundering and terrorist financing.
  • Lack of implementation: The country was found to be lacking in implementing measures to prevent the misuse of non-profit organizations and financial institutions’ secrecy laws.
  • High-risk banking sector: Peru’s banking sector was identified as a high-risk area for money laundering, with inadequate customer due diligence and record-keeping practices cited as major concerns.

Recommendations for Improvement

The report highlighted Peru’s need to strengthen its regulatory framework and enforcement mechanisms to tackle these issues effectively. It recommended:

  • Robust system for detecting suspicious transactions: The establishment of a more robust system for detecting and reporting suspicious transactions.
  • Improved cooperation between law enforcement agencies and financial institutions: Increased cooperation between law enforcement agencies and financial institutions to combat money laundering and terrorist financing.

Response from Peruvian Authorities

In response to the report, Peru’s authorities have pledged to take immediate action to address these weaknesses and strengthen their AML framework. This includes:

  • Development of new regulations and guidelines: The development of new regulations and guidelines for financial institutions.
  • Increased cooperation with international partners: Increased cooperation with international partners to combat money laundering and terrorist financing.

The FATF evaluation has served as a wake-up call for Peru, highlighting the need for more effective and coordinated efforts to combat money laundering and terrorist financing in the country. With renewed commitment and resources, Peru aims to improve its AML framework and reduce the risks associated with financial crime.