Peru’s Battle Against Financial Crimes: Strengthening the Financial Intelligence Unit

Amidst growing concerns over money laundering and crimes related to terrorism, the Peruvian government has announced plans to bolster the Financial Intelligence Unit (FIU). This agency will now have expanded powers to effectively combat financial crimes in the country.

Expanded Powers for the Financial Intelligence Unit

With Legislative Decree Number 1249, the Financial Intelligence Unit (FIU) will be significantly strengthened. The unit will now be able to:

• Request judges to lift bank and tax secrecy provisions
• Supervise various sectors such as notaries, credit unions, travel agencies, and real estate agents

New entities including:

• Credit- and debit-card processing companies
• Lawyers
• Accountants
• Mining companies

will be required to report suspicious financial transactions. Additionally, the unit will have access to tax and banking secrets, allowing them to share information with the prosecutor’s office.

The Extent of Peru’s Money Laundering Problem

The extent of Peru’s money laundering problem is substantial. According to ASBANC, approximately $13 billion in assets were suspected to have been laundered in Peru between 2007 and 2016. Nearly half of these funds were linked to illicit drug trafficking. Illegal mining and crimes against public administrations accounted for 34% and 7%, respectively.

Insights from Fernando Castañeda

Fernando Castañeda, a partner at Diaz, Reus & Targ LLP’s Lima Office, provided some insights on this issue. He stated, “Through Legislative Decree Number 1249, the Financial Intelligence Unit will be significantly strengthened. The establishment of the Centralized Organization for the Prevention of Money Laundering and Terrorist Financing are steps in the right direction.” Castañeda emphasized the importance of promoting the formalization of commercial transactions and the presence of the state in areas where informal mining and drug production and marketing occur.

Challenges and the Importance of a Cooperative Effort

Despite these positive developments, challenges remain. A cooperative effort from Peru’s executive, legislative, and judicial branches will be necessary to effectively combat financial crimes. Only then can real progress be made against perpetrators of corruption, money laundering, and terrorist financing.