Financial Crime World

MONEY LAUNDERING IN PERU: TRENDS AND CHALLENGES

Lima, Peru - In a country where corruption and illicit activities have long been a concern, money laundering remains a significant threat to the Peruvian economy. According to the Bank Association (ASBANC), since 2007, assets worth over $12.9 billion have been laundered in the country.

A COMPLEX WEB OF MONEY LAUNDERING

Money laundering in Peru often involves complex schemes that involve multiple actors and jurisdictions. The country’s geographic location, bordering countries with high levels of corruption and organized crime, makes it an attractive hub for illicit financial flows.

Common Money Laundering Techniques Used in Peru

  • Cash-intensive businesses: Companies that handle large amounts of cash, such as casinos and restaurants, are often used to launder money.
  • Shell companies: Companies with little or no assets or business activity are created to hide the true ownership of assets or funds.
  • Real estate transactions: The use of real estate to launder money is common in Peru, particularly through the purchase and sale of properties.

CHALLENGES AND LIMITATIONS

While efforts have been made to combat money laundering in Peru, challenges and limitations remain. These include:

Limitations Facing Law Enforcement Agencies

  • Lack of resources: The FIU-Peru faces limited resources and staffing, making it difficult to effectively investigate and prosecute money laundering cases.
  • Corruption: Corruption within law enforcement agencies and other institutions can hinder the fight against money laundering.
  • Limited international cooperation: Peru’s ability to combat money laundering is often hampered by a lack of cooperation from other countries.

CONCLUSION

Money laundering remains a significant threat to the Peruvian economy. While efforts have been made to combat this issue, challenges and limitations remain. To effectively combat money laundering, it is essential to address these challenges through increased resources, improved international cooperation, and a strong commitment to combating corruption.