Financial Crime World

Peru on Brink of Institutional Collapse: A Perfect Storm of Corruption and Lawlessness

Lima, Peru - A Country in Crisis

A perfect storm is brewing in Peru, where the government’s cozy relationship with private interests has created an environment ripe for organized crime to flourish. The country’s Congress has gutted key laws and institutions, leaving a power vacuum that could have far-reaching consequences.

The Gutting of Key Laws and Institutions

In a bid to push forward an agenda that benefits corrupt actors, Congress has effectively dismantled the Efficient Collaboration Law, which had been instrumental in investigations of organized crime, including cases against former President Alberto Fujimori’s criminal network. This law was crucial in bringing perpetrators to justice.

The Impact on Investigations and Accountability

  • Over half of Congress members are currently under investigation for alleged corruption
  • The president of Congress has invoked a new law to seek dismissal of a pending case against him

Enabling Illegal Activities

Illegal gold mining, worth an estimated $4 billion last year, is being enabled by Congress’s repeated extension of a deadline for informal miners to register with the government. This has allowed harmful extraction practices to continue with impunity, poisoning rivers and land.

The Result: Environmental Devastation

  • Regularization of past large-scale illegal deforestation through amendments to the Forestry Law
  • Shuttering of many environmental crime investigations

A Country in Crisis

Peruvians have been left reeling, with approval ratings for Congress and President Boluarte in single digits. Many have lost hope, with a record number leaving the country in search of better opportunities.

The International Community Must Act

  • The United States should be more vocal about the crisis unfolding on its doorstep
  • Removing visas from individuals credibly linked to abuse and corruption would send a strong message that the Biden administration cares about the rule of law in Peru

A Call to Action

It’s not too late to stop the rot in Peru, but action is needed now. The international community must take notice before it’s too late.