Peru under pressure from OECD on regulating financial flows

03 June 2018

 It is well known that Peru’s cooperatives are the weak link in the financial system when it comes to controlling flows of illicit money. For this reason, there have been strenuous attempts in recent weeks to bring these entities under the supervision of the Superintendency of Banks and Insurance (SBS).

But, perhaps not surprisingly, these attempts to submit cooperatives to more stringent regulation, have met with opposition from key members of Fuerza Popular (FP), the largest grouping in the Peruvian Congress. It transpires that a substantial number of Fujimoristas have a major interest in resisting tougher regulation.

Pressure on Peru to clean up its financial system comes from, among other sources, the Financial Action Task Force of Latin America (or Gafilat to use its Spanish acronym). The headquarters of Gafilat is within the OECD in Paris. Peru aspires to become a full member of the OECD, like Colombia whose membership was finally made official last week. But failure to clean up its banking arrangements may prove a decisive stumbling block to Peru’s hopes.

A delegation from Gafilat arrived in Peru in late May to observe how state organisations monitor asset laundering. Gafilat has made it clear that it wants the cooperatives to be regulated by the SBS.


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