Anti Money Laundering (AML) in Peru
Peru is not a major regional financial center, nor is it an offshore money laundering haven, therefore, money laundering is not a serious problem. However, Peru still needs to be capable of protecting itself from money laundering. The Government of Peru has recently taken several steps to improve its money laundering legislation and enforcement abilities by adopting substantial changes to its existing Anti-Money Laundering (AML) regime. This has helped to significantly broaden the definition of money laundering beyond a crime only associated with narcotics trafficking.
Money laundering has historically been assisted by a number of factors, especially Peru’s cash-based economy. Peru’s economy is heavily dependent upon the United State’s Dollar (USD), and approximately 65 percent of the economy is dollarized, allowing traffickers to handle large bulk shipments of US currency with almost no complications.
Peru’s Financial Intelligence Unit (FIU), the Unidad de Inteligencia Financiera (UIF), is the government entity responsible for receiving, analyzing and disseminating Suspicious Transaction Reports (STRs) filed by obligated entities. The UIF plays a huge role in combating money laundering and terrorist financing.
Peru requires that Customer Due Diligence (CDD) be enacted for all customer transactions and requires that all financial institutions report any cash transactions that exceed 10,000 USD.
The Economy of Peru
Peru has experienced a significant amount of economic growth over the past few years. Thanks to an abundance of natural resources, such as natural gas and petroleum, Peru’s economy continues to progress. Peru is also the number one producer of silver, the world’s second largest producer of zinc and copper, third in tin, fourth in lead and fifth in gold. Exporting these minerals has accounted for significant growth in the Peruvian economy.
Peru has taken measures to promote trade and attract investment, and recent economic expansion has been driven by construction, mining, export growth, investment and domestic demand.
Banking in Peru
The Central Reserve Bank of Peru (BCRP) is the Peruvian central bank. The Bank was established by the Peruvian Political Constitution of Peru, with the objective of preserving monetary policy.
The main functions of the BCRP are regulating money and credit in the financial system, managing international reserves, issuing notes and coins and periodically reporting on Peru’s finances.
Peru's Currency
Peru's currency is the nuevo sol. The name is derived from historical use and worship of the sun (sol), symbolizing power to the Peruvians. One nuevo sol is broken down into 100 céntimos (cents). Banknotes currently circulating include 200, 100, 50, 20 and 10 nuevos soles, while there are coins for 1, 2 and 5 nuevos soles and 50, 20, 10 and 5 cents.
The exchange of currency is an easy affair in Peru. Most of the hotels and resorts in various parts of the country accept US Dollars. The safest method of exchanging money is through banks and other authorized financial institutions, where security and a guarantee of the exchange are offered.
Other Key Statistics of Peru
Time Zone: GMT (UTC)-5. Peru does not follow daylight savings time.
Location: Western South America, bordering the South Pacific Ocean, between Chile and Ecuador.
Population: 29,180,900 (July 2008).
Labor Force: 73% work in the services sector, 18% work in the industrial sector and 9% in the agricultural sector.
Languages Spoken: Spanish and Quechua are the official languages, Aymara is widely spoken and a large number of minor Amazonian languages.
Trade Organizations: Peru is a member of the World Trade Organization (WTO).
