Financial Crime World

CDD Regulations in Peru: A Comprehensive Overview

In Peru, financial institutions are required to adhere to strict “Know Your Customer” (KYC) guidelines and Anti-Money Laundering (AML) regulations. These regulations apply to various industries, including payment services, and aim to verify the identity, suitability, and risks involved with maintaining a business relationship.

History of AML and KYC Regulations in Peru

The AML and KYC regulations were introduced in 2002 with the creation of the Financial Intelligence Unit (UIF), which is now part of the Superintendency of Banks of Peru (SBS). The Law # 27693 established the UIF’s role in supervising non-banking sectors on AML and KYC.

The Role of SBS in Overseeing Compliance

The SBS has an internal department called the Financial Intelligence Unit, responsible for overseeing non-banking sectors’ compliance with AML and KYC regulations. This department ensures that all companies adhere to minimum standards when conducting a typical KYC identification process, including:

  • Legal information
  • ID
  • Handwritten signature
  • Validation of PEP condition
  • Client screening with international blacklists

Relying on Third-Party Providers

In addition to meeting customer due diligence requirements, companies can also rely on third-party providers who are legally obligated to comply with AML regulations. This includes:

  • Financial institutions
  • Credit unions
  • Other organizations

However, if outsourcing customer due diligence is chosen, the provider must meet all minimum requirements.

Entities That Can Be Relied Upon

In Peru, entities that can be relied upon specifically by law to comply with AML regulations include:

  • Auditors
  • External accountants
  • Tax advisors
  • Notaries and other independent legal professionals
  • Trust or company service providers

Exceptions

However, entities such as:

  • Estate agents
  • Providers of high-value goods
  • Gambling services

are not subject to AML regulations.

Seeking Guidance

For further guidance on CDD regulations in Peru, companies can consult with the SBS or seek advice from a qualified professional.