Financial Crime World

Peru Takes Step Towards FATF Compliance: SBS Issues Resolution on Virtual Asset Service Providers

Introduction

In a move aimed at curbing illicit financial activities, the Peruvian Superintendency of Banking, Insurance, and Private Pension Fund Administrators (SBS) has introduced new regulations for Virtual Asset Service Providers (VASPs) operating within the country.

New Regulations: Compliance with FATF Recommendations

The decision follows closely in line with the recommendations made by the Financial Action Task Force (FATF), an intergovernmental organization that sets global standards for combating money laundering, terrorist financing, and other financial crimes. The resolution seeks to prevent VASPs from being exploited for illicit activities such as money laundering and terrorism financing.

Key Requirements

  • Know Your Customer (KYC) and Anti-Money Laundering (AML) measures: VASPs must implement robust KYC and AML measures as part of their compliance programs.
  • Dedicated Compliance Officer: VASPs are mandated to appoint a dedicated compliance officer responsible for overseeing their AML/CTF measures.
  • Effective Systems for Monitoring and Reporting: These providers must establish effective systems for monitoring and reporting suspicious transactions, adhering to international standards on due diligence and risk management.
  • Comprehensive KYC Policies: Peruvian exchanges are required to implement comprehensive KYC policies, including robust procedures for verifying customer identities and assessing potential risks associated with financial activities.

Additional Requirements

  • Travel Rule Enforcement: VASPs must collect additional information from users involved in transactions exceeding $1,000, effectively enforcing the travel rule under international AML standards.
  • Enhanced Monitoring and Reporting: The implementation of these new regulations marks an important step towards Peru’s compliance with FATF recommendations, underscoring its commitment to combating financial crimes and maintaining a secure and transparent financial environment within the country.

The new regulations introduced by the SBS are a crucial step in ensuring that VASPs operating in Peru comply with international standards for combating money laundering and other financial crimes.