FATF status

Peru is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Peru was undertaken in 2020. According to that Evaluation, Peru was deemed Compliant for 16 and Largely Compliant for 19 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Corruption in Peru is pervasive and systemic, impacting various levels of government and society, with common practices including bribery, embezzlement, and fraud, particularly in public procurement. In 2023, Peru's score on Transparency International's Corruption Perceptions Index dropped to 33, reflecting ongoing issues with structural corruption and political instability. Efforts are underway to reform procurement laws and enhance anti-corruption measures, but enforcement remains weak, and the judiciary is ineffective, posing significant challenges for businesses operating in the country.

Peru's economy has experienced significant fluctuations, with a contraction of 0.6 percent in GDP in 2023, following a growth of 2.7 percent in 2022, largely due to political instability and social conflicts that have undermined investor confidence. The Central Reserve Bank of Peru forecasts a rebound in 2024 with a projected GDP growth of 3.0 percent, supported by government spending aimed at stimulating recovery. Despite these challenges, Peru maintains strong net international reserves of $78 billion and has seen inflation rates decrease from a high of 8.5 percent in 2022 to an expected 3.1 percent in 2023.

Peru's investment climate has been adversely affected by political instability and social conflicts, leading to a decline in investor confidence, as reflected in the downgrading of its sovereign credit ratings by major agencies. Despite these challenges, the country maintains an open investment environment with strong protections for contract and property rights, and private sector investment constituted 78.2 percent of total investment in 2023. The government actively seeks foreign investment, particularly in infrastructure and key sectors, although navigating the complex bureaucracy can be a challenge for prospective investors.