Financial Crime World

Peru Struggles to Combat Money Laundering, Despite Gains

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Lima, Peru - Despite significant progress in combating money laundering, Peru still faces major challenges in detecting and preventing the illegal flow of funds. According to the Bank Association (ASBANC), more than $12.9 billion in assets have been laundered in Peru since 2007.

A History of Money Laundering

Peru’s experience with money laundering dates back to the signing of the United Nations Convention against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances, also known as the Vienna Convention, in 1988. Since then, Peru has aligned its laws with international efforts to combat drug trafficking and money laundering.

The Financial Intelligence Unit of Peru (FIU-Peru)

In 2002, the FIU-Peru was created through Act 27693, giving it broad powers to detect and prevent money laundering and financing of terrorism. The agency is responsible for receiving, analyzing, treating, evaluating, and transmitting information to identify suspicious transactions.

  • The FIU-Peru has functional, technical, and administrative autonomy under public law, allowing it to work closely with other agencies, including the Superintendence of Banking and Insurance (SBS) and the Public Prosecutor’s Office.
  • The agency also plays a key role in implementing the System for Prevention and Control of Money Laundering and Financing of Terrorism (SPLAFT), which relies on reports from banks, notaries, real estate agencies, and other entities to detect suspicious transactions.

International Cooperation

The Financial Action Task Force (FATF) has provided guidelines and recommendations for Peru’s anti-money laundering efforts. The country is also a member of the Multisectorial Executive Commission against Money Laundering and Financing of Terrorism, which aims to coordinate actions among public and private entities to prevent and combat money laundering and financing of terrorism.

Challenges Ahead

Despite these efforts, significant challenges remain. The Public Registry of Peru (National System of Public Registries, SINARP) has not been fully integrated into the SPLAFT system, although it is obliged to provide information when needed for FIU-Peru’s functions and to cooperate in registration matters.

  • The fight against money laundering requires a coordinated effort from all stakeholders.
  • As Peru continues to grapple with this issue, it is essential that all agencies and entities work together to prevent the illegal flow of funds and protect the integrity of its financial system.