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 issues such as bribery, embezzlement, and fraud being prevalent, especially in public procurement. In 2023, Peru's score on Transparency International's Corruption Perceptions Index dropped to 33, ranking it 121st out of 180 countries, reflecting ongoing structural corruption and political instability. Despite legal frameworks aimed at combating corruption, enforcement remains weak, although recent legislative efforts are underway to reform procurement laws and enhance transparency.

Peru's economy has experienced significant fluctuations, with a contraction of 0.6 percent in GDP in 2023, down from a growth of 2.7 percent in 2022, largely due to political instability and social conflicts affecting investor confidence. The Central Reserve Bank of Peru forecasts a recovery in 2024, anticipating a GDP growth of 3.0 percent as the government increases spending to stimulate the economy. Despite these challenges, Peru maintains strong net international reserves of $78 billion and a projected decrease in inflation from 8.5 percent in 2022 to 3.1 percent in 2023.

Peru's investment climate has been negatively affected by political instability and social conflict, leading to a decline in investor confidence, as evidenced by a contraction in GDP and downgrades from major credit rating agencies. Despite these challenges, Peru 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 and key sectors, although prospective investors are advised to navigate the complex bureaucracy with local legal counsel.