Peru’s Financial Regulators Tighten Screws on Know Your Customer Procedures for Banks
In an effort to combat money laundering and terrorist financing, the Superintendencia de Banca, Seguros y Administradoras de Fondos de Pensiones (SBS) has strengthened its know your customer (KYC) guidelines for banks operating in Peru.
Background
The SBS has been responsible for enforcing anti-money laundering (AML) and combating the financing of terrorism since 2008, when it absorbed the Financial Intelligence Unit (UIF). Prior to this, the UIF was established in 2002 as part of efforts to combat money laundering. The AML and KYC requirements were first introduced through Law #27693 in 2002.
New Regulations
Under the new regulations, banks are required to conduct a typical KYC identification process, which includes:
- Verifying legal information
- ID verification
- Handwritten signature validation
- Validating Politically Exposed Person (PEP) status
- Screening clients against international blacklists
Banks may also rely on third-party providers who are obligated by law to comply with AML regulations. However, the outsourcing of customer due diligence is permitted only if the provider meets minimum requirements set by the SBS.
Third-Party Providers
Entities that can be relied upon specifically by law as third-party providers of AML compliance services include:
- Auditors
- External accountants
- Tax advisors
- Notaries
- Independent legal professionals
- Trust or company service providers
However, estate agents, providers of high-value goods, and gambling services are excluded from this list.
Objectives
The new regulations aim to enhance financial transparency and stability in Peru by ensuring that banks have robust KYC procedures in place to detect and prevent money laundering and terrorist financing activities. By strengthening its KYC guidelines, the SBS hopes to improve financial oversight and protect the integrity of Peru’s financial system.