Peru’s Measures to Combat Money Laundering and Illegal Mining Were Reasonable and Justified

In a significant development, the Government of Peru has filed a counter-memorial that reveals its measures aimed at combating money laundering and illegal mining were reasonable, proportionate, and justified.

Background

The Government of Peru took decisive action to immobilize five shipments of gold suspected of being illegally mined and laundered. This move was in accordance with Peruvian law and international public policy, and did not violate any obligations under the Peru-United States Trade Promotion Agreement (Treaty) or other relevant treaties.

The Counter-Memorial

The counter-memorial argues that Peru’s actions were fully consistent with the Treaty and Peruvian law. The measures were designed to protect legitimate public welfare objectives, including preventing the laundering of illegal proceeds and combating organized crime.

• Peru’s administrative and judicial authorities properly exercised their powers to order immobilizations and issue interlocutory measures in respect of the five shipments.
• These actions were taken in accordance with Peru’s legal framework and international public policy, and did not violate any obligations under the Treaty or other relevant treaties.

The Impact of Illegal Mining

The counter-memorial highlights the devastating impact that money laundering and illegal mining can have on socio-economic development, public health, and the environment. It notes that illegal gold mining is a significant problem in Peru, with organized crime being behind the illegal gold mining underworld.

• Illegal gold mining generates significant profits for criminal organizations, often far exceeding those derived from other illicit activities such as cocaine trafficking.
• The book “Dirty Gold: the Rise and Fall of an International Smuggling Ring” notes that illegal mining is a major source of mercury contamination, causing severe health effects and poisoning of water supplies.

Conclusion

The Government of Peru is confident that its measures were reasonable and justified, and that they do not give rise to any liability or obligation on the part of Peru to pay compensation to Kaloti Metals & Logistics, LLC. The matter will now be considered by an international tribunal in accordance with relevant treaty provisions.

Peru’s Commitment to Combating Money Laundering and Illegal Mining

The Government of Peru has consistently demonstrated a commitment to combating money laundering and illegal mining. Its efforts have been designed to protect legitimate economic activity, prevent the laundering of illegal proceeds, and tackle organized crime.

• The Government of Peru took decisive action to immobilize five shipments of gold suspected of being illegally mined and laundered.
• These measures were taken in accordance with Peruvian law and international public policy, and did not violate any obligations under the Treaty or other relevant treaties.