Financial Crime World

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Peru’s Fight Against Money Laundering and Terrorism: Still a Work in Progress

Despite progress made in the fight against money laundering and terrorism, Peru still faces significant vulnerabilities that hinder its efforts to combat these crimes. The country’s Public Registry, SUNARP, plays a crucial role in this battle, but experts say there is much work to be done.

The Role of SUNARP

SUNARP is part of the Multisectorial Executive Commission against Money Laundering and Financing of Terrorism, CONTRALAFT, which is attached to the Ministry of Justice and Human Rights. The commission was created to assist in the coordination and planning of actions by public and private entities aimed at preventing and combating money laundering and financing of terrorism.

National Policy Against Money Laundering and Financing of Terrorism

In 2017, Peru’s National Policy Against Money Laundering and Financing of Terrorism was approved, with a focus on strengthening the national system for combating these crimes. The policy is mandatory for all levels of government and sectors involved in the prevention, detection, investigation, and punishment of money laundering and financing of terrorism.

Vulnerabilities Persist

However, despite these efforts, vulnerabilities persist. For example:

  • Bank and fiscal secrecy regulations prevent Peru from accessing critical information, making it difficult to identify suspicious transactions.
  • There is no obligation to register information on the real holders of legal persons in the Public Registry.

Anti-Money Laundering Index 2017

According to the “Anti-Money Laundering Index 2017” published by the Basel Institute on Governance, Peru has regressed significantly in its efforts to combat money laundering and terrorist financing.

Financial Intelligence Unit Reports

The Financial Intelligence Unit (UIF-Peru) reports that between January 2007 and November 2017, it issued financial intelligence reports involving over $14 billion in transactions related to:

  • Drug trafficking
  • Illegal mining
  • Crimes against public administration
  • Tax fraud

Limited Success of Tax Amnesty Period

Despite a tax amnesty period expiring in December 2017, the government’s efforts to increase revenue were met with limited success. The Treasury only received S/1,136 million soles (approximately $350 million USD), representing just 28.4% of projected amounts.

Conclusion

As the poet Cesar Vallejo once said, “There is still a lot to be done!” Peru’s fight against money laundering and terrorism is far from over.