Financial Crime World

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Peru’s Compliance with FATF Recommendations

The Financial Action Task Force (FATF) has released its 2020 Follow-Up Report on Peru, evaluating the country’s compliance with its recommendations to prevent money laundering and terrorist financing. The report assesses Peru’s progress in implementing technical requirements and identifies areas that require improvement.

Progress and Compliance

According to the report, Peru has made significant progress in several key areas:

  • Risk-Based Approach: Peru is considered compliant (C) under Recommendation R.1, which requires countries to assess risk and apply a risk-based approach.
  • Money Laundering and Terrorist Financing Offenses: Peru has demonstrated compliance with Recommendations R.3, R.5, and R.20, which focus on money laundering and terrorist financing offenses, confiscation and provisional measures, and reporting of suspicious transactions, respectively.
  • National Cooperation and Coordination: Peru received high marks for its implementation of recommendations related to national cooperation and coordination (R.2).
  • Targeted Financial Sanctions: Peru is compliant with Recommendations R.6 and R.7, which concern targeted financial sanctions.
  • Internal Controls: Peru has implemented internal controls as required under Recommendation R.18.

Areas for Improvement

However, the report identifies areas where Peru requires improvement:

  • Non-Profit Organizations: Peru is considered partially compliant (PC) under Recommendation R.8, which pertains to non-profit organizations.
  • Transparency and Beneficial Ownership of Legal Arrangements: Peru is also considered partially compliant (PC) under Recommendation R.25, which deals with transparency and beneficial ownership of legal arrangements.
  • Mutual Legal Assistance: Freezing and Confiscation: Peru received a non-compliant rating (NC) for Recommendation R.38, which concerns mutual legal assistance: freezing and confiscation.

Overall Progress

Peru’s compliance with the remaining recommendations falls into the largely compliant (LC) or compliant (C) categories, indicating that while there are areas for improvement, the country has made significant strides in implementing the FATF Recommendations.

In conclusion, the report highlights Peru’s progress in combating money laundering and terrorist financing, but also underscores the need for further improvement in certain key areas.