Actualidad Peru

National Anti-Money Laundering & Financing of Terrorism Policy

Supreme Decree 018-2017-JUS

The official gazette El Peruano published on 15 September 2017 the country’s national anti-money laundering & financing of terrorism policy, fruit of a shared effort between several public institutions and private-sector players involved, directly or indirectly, in adopting measures to prevent money laundering and the financing of terrorism (hereinafter AML/FT). The policy was created in four stages, over the course of 7 workshops attended by 34 public- and private-sector institutions and 73 professionals.

The overarching aim of the policy is to prevent, detect, investigate and punish money laundering and the financing of terrorism efficiently, effectively and in a coordinated manner, to contribute to Peru’s economic, political and social stability. The policy operates on the following principles:

  • Legality and due process: refers to respect for and compliance with the Political Constitution, laws, international treaties that have been ratified by Peru, sector regulations and binding national and international jurisprudence.
  • Efficiency: optimization of resources available from entities involved in the AML/FT struggle.
  • Efficacy: the activity of institutions involved in AML/FT must be focused on achieving goals and obtaining results.
  • Cooperation between institutions: the aim is to adopt mechanisms that encourage mutual help at a technical and practical level between institutions.
  • International cooperation: refers to public institutions implementing mutually collaborative mechanisms with their opposite or equivalent numbers outside Peru and using international judicial cooperation.
  • Transparency and accountability: refers to strategic, timely reporting of the regulations, policies, plans, processes, actions, progress and outcomes achieved in the AML/FT battle, while safeguarding legal provisions  where they apply.
  • Involvement of civil society and the private sector: civil society and the private sector must have spaces that guarantee and promote participation in the AML/FT fight.

The policy also articulates three critical strategies focusing on prevention, detection, investigation and punishment, and seeks to achieve “joined up” implementation. For this final goal, it is looking to generate synergies between public institutions, civil society and the private sector. Building on these strategies, it has set 4 concrete objectives, with targets, Heads, guidelines and standards for each.

In the Appendix documents, the policy identifies 5 threats: (i) the existence of coca crops, the first link to drug trafficking, (ii) vestiges of the Sendero Luminoso terrorist organization, (iii) increase in recent years of corruption in public life, (iv) high rate of certain types of crime in the country: illegal mining, people trafficking, illegal log felling, contraband, extorsion and contract killings; and (v) existence in the region of countries with a high degree of criminality. Based on these, 43 vulnerabilities and 43 risks in AML/FT have been targeted.

The Supreme Decree also modifies articles 2, 3, 4 & 7 of Supreme Decree 057-2011-PCM, most importantly the affiliation of the Multisector Executive Commission against money laundering and the financing of terrorism (CONTRALAFT) with the Justice & Human Rights Ministry, setting up the Commission’s functions, and changing its members. Formerly these included a representative from the Women’s & Social Development Ministry: this representation is now filled by someone on behalf of the Minister of Defense, while two have been added: a representative from the National Public Records Authority and another, on behalf of the Executive Director of the Peruvian International Cooperation Agency.

Similarly, the amendment requires institutions to inform the Presidency of CONTRALAFT in writing within 5 days of their designated representatives.