Peru Country Summary

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 deeply entrenched, affecting government and society at all levels, with issues like embezzlement and bribery prevalent in the justice system and public procurement. The country scored 33 out of 100 on Transparency International's Corruption Perceptions Index in 2023, reflecting ongoing structural corruption and political instability. Despite legal frameworks aimed at combating corruption, such as penalties for irregular political financing and oversight by the Public Auditor, the effectiveness of these measures is hindered by weak enforcement and a lack of public trust.

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, projecting a GDP growth of 3.0 percent as the economy recovers from recession. Despite challenges, Peru maintains strong net international reserves of $78 billion and a commitment to sound fiscal policies, although inflation remains a concern, expected to decrease to 3.1 percent in 2023.

Peru's investment climate has been negatively affected by political instability and social conflicts, leading to a decline in investor confidence and a contraction in GDP. Despite these challenges, the country maintains an open investment environment with strong protections for contract and property rights, and private sector investment accounted for 78.2 percent of total investment in 2023. The government actively seeks foreign investment, particularly in infrastructure, although prospective investors are advised to navigate the complex bureaucracy with local legal counsel.