Financial Crime World

Emerging Risks in Financial Crime Prevention in Peru: A Growing Concern

The increasing adoption of innovative technologies has revolutionized the financial landscape, but it also presents new challenges for anti-money laundering (AML) subject persons to detect and prevent financial crimes.

The Evolving Financial Landscape

  • Artificial Intelligence (AI): AI has transformed various industries, including finance. However, its impact on AML is multifaceted.
  • Blockchain: Virtual assets have gained popularity due to their high transaction speeds, global reach, and anonymity.
  • Deepfake Technology: Deepfakes can convincingly create personas that never existed, posing a significant threat to society.

Emerging Risks in Peru

Peru is not immune to these emerging risks, which include:

Blockchain Technology

  • Virtual assets have made them increasingly accessible as payment products.
  • Their inherent characteristics make them susceptible to misuse by wrongdoers.

Non-Fungible Tokens (NFTs)

  • NFTs have gained popularity in recent years but also pose risks for money laundering, terrorist financing, and financial crimes.
  • Their subjective value and ease of manipulation make them a concern.

Fake News

  • The spread of false information online has become a significant concern, particularly with the rise of language-model AI systems like ChatGPT.
  • This makes it challenging for AML subject persons to identify reliable news sources and collect due diligence on clients.

Mitigating Emerging Risks

To address these challenges, AML subject persons should:

Identify and Understand Risks

  • Familiarize themselves with emerging technologies to ensure their AML/CTF framework keeps up with emerging risks.
  • Design mitigating controls to address corresponding risks.

Provide Adequate Training

  • Provide adequate training for employees on risk-based approaches to identifying and mitigating emerging financial crime risks.

Deloitte’s Assistance

Deloitte is well-equipped to assist AML subject persons in setting up frameworks to mitigate the risk of their services being misused for money laundering, terrorist financing, or financial crimes. Reach out to our team to learn more about emerging risks and how they can be managed.

Collaborative Efforts

In light of these growing concerns, it is essential that financial institutions, regulatory bodies, and other stakeholders work together to stay informed about emerging risks and develop effective strategies to prevent and mitigate them.