Financial Crime World

Peru’s Know Your Customer (KYC) Procedures: A Guide for Financial Services

National Regulatory Framework

The Anti-Money Laundering (AML) and KYC requirements in Peru were first established by Law # 27693, which created the Financial Intelligence Unit (UIF) in 2002. Today, the UIF is part of the Superintendencia de Banca, Seguros y AFP (SBS), a national regulatory agency responsible for supervising non-banking sectors on AML and KYC.

Customer Due Diligence

To conduct a typical KYC identification process, professionals must verify the following minimum standards:

  • Legal Information: Verify the client’s legal identity.
  • Identification Documents: Check the validity of government-issued identification documents.
  • Handwritten Signature: Validate the client’s handwritten signature.
  • Politically Exposed Person (PEP) Condition: Determine if the client is a PEP and verify their status.
  • Client Screening with International Blacklists: Screen the client against international blacklists.

Professionals may also rely on third parties who are obligated by law to comply with AML regulations. KYC outsourcing is legal in Peru, but providers must meet all minimum requirements.

Third-Party Providers

The following entities can be relied upon specifically by law as third-party providers to comply with AML regulations:

  • Auditors: Independent auditors who provide audit services.
  • External Accountants and Tax Advisors: External accountants and tax advisors who provide accounting and tax services.
  • Notaries and Other Independent Legal Professionals: Notaries, lawyers, and other independent legal professionals who provide legal services.
  • Other Trust or Company Service Providers: Other trust or company service providers who offer services related to the formation and management of companies.

However, the following entities cannot be relied upon as third-party providers:

  • Credit Institutions: Financial institutions that engage in lending activities.
  • Financial Institutions: Institutions that provide financial services, such as banks and investment firms.
  • Estate Agents: Real estate agents who facilitate property transactions.
  • Providers of High-Value Goods: Companies that sell high-value goods, such as jewelry or art.
  • Providers of Gambling Services: Companies that operate gambling businesses.