Peru’s Anti-Money Laundering Laws and Regulations Fall Short, Says International Evaluation

International Evaluation Highlights Need for Improvement in Peru’s AML Laws and Regulations

A recent evaluation by the Financial Action Task Force (FATF) has deemed Peru’s efforts to combat money laundering and terrorist financing insufficient. The evaluation highlights the country’s need for improvement in its anti-money laundering (AML) laws and regulations.

Key Findings of the Evaluation

• Perú was rated as largely compliant or partially compliant on 16 out of 40 key recommendations.
• The country showed significant improvement in its ability to assess risk and apply a risk-based approach, earning a rating of “compliant” (C).
• National cooperation and coordination mechanisms were rated as only partially compliant (PC).
• Peru faces challenges in implementing effective measures against terrorist financing.

Areas for Improvement

• Customer due diligence requirements for financial institutions are deemed only partially compliant.
• Record-keeping and wire transfer regulations have been rated as largely compliant.

Consequences of Non-Compliance

Peru’s failure to comply with international standards in anti-money laundering and counter-terrorist financing could have severe consequences, including damage to its reputation as a reliable partner for international trade and investment.

Conclusion

While Peru has made progress in implementing some of the FATF Recommendations, there is still significant work to be done to strengthen its AML laws and regulations. The country must take a proactive approach to addressing areas of non-compliance and ensure that its financial system is robust enough to prevent illicit activities.