Financial Crime World

Peru’s AML/CFT Regulations Under Scrutiny: FATF Report Reveals Country’s Compliance Status

A recent report by the Financial Action Task Force (FATF) has evaluated Peru’s anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, revealing a mixed bag of compliance with international standards. The report assesses the country’s implementation of FATF Recommendations, categorizing various aspects of its AML/CFT regime as compliant, largely compliant, partially compliant, or non-compliant.

Areas of Compliance

The report highlights Peru’s significant progress in implementing key recommendations, including:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Confiscation and provisional measures (R.4)
  • Terrorist financing offence (R.5)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • Correspondent banking (R.13)
  • Money or value transfer services (R.14)
  • Wire transfers (R.16)
  • Internal controls and foreign branches and subsidiaries (R.18)
  • Reporting of suspicious transactions (R.20)
  • Tipping-off and confidentiality (R.21)
  • DNFBPs: Customer due diligence (R.22)
  • Regulation and supervision of financial institutions (R.26)
  • Powers of supervisors (R.27)
  • Financial intelligence units (R.29)

Areas for Improvement

However, the report also identifies areas where Peru falls short of meeting FATF’s expectations, including:

  • Non-profit organizations (R.8)
  • Financial institution secrecy laws (R.9)
  • Customer due diligence (R.10)
  • Record keeping (R.11)
  • Politically exposed persons (R.12)
  • New technologies (R.15)
  • Reliance on third parties (R.17)
  • Higher-risk countries (R.19)
  • DNFBPs: Other measures (R.23)
  • Transparency and beneficial ownership of legal persons (R.24)
  • Regulation and supervision of DNFBPs (R.28)

Implications and Next Steps

The report’s findings have significant implications for Peru’s financial sector, as well as its reputation globally. The country’s authorities will need to take concrete steps to address the identified shortcomings and strengthen its AML/CFT regime in order to meet international standards and prevent the misuse of its financial system.

  • Addressing these areas of non-compliance is crucial to ensuring the integrity of Peru’s financial system and preventing the laundering of money and financing of terrorism.
  • The country’s authorities must work to implement the necessary reforms and strengthen their AML/CFT regime in order to maintain a positive reputation globally and prevent sanctions.