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 all levels of government and society, with common practices including embezzlement, bribery, and fraud. The country scored 33 out of 100 on Transparency International's Corruption Perceptions Index in 2023, reflecting ongoing issues with structural corruption and political instability. Efforts to combat corruption are underway, including proposed reforms to procurement laws and the enforcement of anti-corruption measures, although enforcement remains weak.

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 GDP growth to 3.0 percent in 2024 as the economy recovers from recession, although the government's fiscal deficit has increased from 1.6 percent of GDP in 2022 to 2.8 percent in 2023 due to increased spending to stimulate growth.

Peru's investment climate has been negatively affected by political instability and social conflict, 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 accounted for 78.2 percent of total investment in 2023. The government actively seeks foreign investment, particularly in infrastructure, while the investment promotion agency ProInversion facilitates opportunities across various sectors.