Financial Crime World

Peru Struggles to Combat Money Laundering Techniques

A Growing Concern in a Country Plagued by Corruption and Drug Trafficking

Lima, Peru - Money laundering has become a significant concern for authorities in Peru, where corruption and drug trafficking are rampant. According to the Bank Association (ASBANC), over $12.9 billion in assets have been laundered in Peru since January 2007 and March 2016.

International Efforts to Combat Money Laundering

In an effort to combat this growing problem, Peru signed the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances in 1988. This convention aimed to criminalize money laundering derived from illicit trafficking and abuse of controlled drugs worldwide. As a result, Peru created the Financial Intelligence Unit (FIU-Peru) through Act 27693 in 2002.

The Role of FIU-Peru

The FIU-Peru has been tasked with:

  • Receiving, analyzing, treating, evaluating, and transmitting information for the detection of money laundering and financing of terrorism
  • Contributing to the implementation of the “System for the Prevention and Control of Money Laundering and Financing of Terrorism” (SPLAFT), which uses reports from banks, notaries, real estate agencies, and other entities to detect suspicious transactions

The agency works closely with the Public Prosecutor’s Office and judiciary to ensure that those involved in money laundering are held accountable.

Additional Measures to Combat Money Laundering

In addition to FIU-Peru, the Public Registry of Peru (National System of Public Registries) plays a crucial role in preventing and combating money laundering. The registry:

  • Provides information when needed for the fulfillment of FIU-Peru’s functions
  • Participates in the Multisectorial Executive Commission against Money Laundering and Financing of Terrorism (CONTRALAFT), which coordinates and plans actions by public and private entities aimed at preventing and combating money laundering and financing of terrorism

Challenges Remain

Despite these efforts, Peru still faces significant challenges in combating money laundering techniques. Authorities must continue to work together to prevent and detect illegal activities and hold those responsible accountable.

Conclusion

Combating money laundering requires sustained effort and cooperation from all stakeholders. Peru’s authorities must continue to strengthen their measures to prevent and detect money laundering, and ensure that those involved are held accountable for their actions.