Peru gains insight into money laundering, terror funding

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Friday, April 21, 2017

Peru's banking authority (SBS) has identified a comprehensive set of factors contributing to money laundering and terror funding.

The SBS research division (UIF) interviewed employees at more than 40 public entities under a study carried out from January to November 2016 with technical support from the IDB.

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The five key factors identified include:

(1) The existence of coca cultivation as the first link in the drug trade.

(2) Remnants of the Sendero Luminoso (Shining Path) terror group.

(3) Higher incidence of acts of public corruption in recent years.

(4) Higher occurrence of certain kinds of illicit industry (e.g. illegal mining, illegal logging, human trafficking, contraband, extortion and murder-for-hire).

(5) A higher degree of criminality in the region's nations.

The study also identified 43 vulnerabilities related to institutional, political and socioeconomic realities in Peru. These included shortfalls in the design and application of the frameworks that Peru has established to combat these crimes.

The SBS stated that the results would serve as starting points for the development of new measures to eliminate or reduce damage from these crimes, as the nation prepares for a major evaluation of its progress on these issues by Latin American financial action task force GAFILAT, which is set to begin later this year.