Peru -- Sanctions Compliance Regulatory Overview

While Peru does not have specific legislation exclusively regulating cryptocurrencies or explicitly listing Virtual Asset Service Providers (VASPs) as "obligated parties" under its anti-money laundering and counter-terrorism financing (AML/CFT) framework in the same way traditional financial institutions are, it is crucial to understand that Peru's adherence to international AML/CFT standards, particularly those set by the Financial Action Task Force (FATF), and its participation in the global financial system, means that international sanctions apply and compliance is expected.

Peru's financial intelligence unit, the Unidad de Inteligencia Financiera del Perú (UIF-Perú), which operates under the Superintendencia de Banca, Seguros y AFP (SBS), is responsible for overseeing AML/CFT efforts.

Here's a breakdown of cryptocurrency sanctions and restrictions in Peru:

1. OFAC/EU/UN Sanctions Compliance Requirements for VASPs in Peru

While Peru doesn't have a dedicated crypto law, the global nature of sanctions and Peru's international commitments mean that VASPs operating within or serving Peruvian residents must adhere to international sanctions regimes.

• UN Sanctions: As a member state of the United Nations, Peru is obligated to implement sanctions imposed by the UN Security Council. These resolutions are binding and typically target individuals, entities, and regimes involved in terrorism, proliferation of weapons of mass destruction, and other threats to international peace and security.

  • Compliance Requirement: VASPs in Peru must screen their users, transactions, and wallets against the UN Consolidated Sanctions List.
  • Legal Reference: UN Security Council Resolutions (e.g., various resolutions under Chapters VI and VII of the UN Charter). While Peru incorporates these into its legal framework, the direct legal mandate comes from its UN membership.
    • UN Security Council Consolidated List: https://www.un.org/securitycouncil/content/un-sc-consolidated-list

• OFAC Sanctions (U.S. Department of the Treasury's Office of Foreign Assets Control): OFAC sanctions have a broad extraterritorial reach, particularly for any entity or individual that uses the U.S. financial system, transacts in U.S. dollars, or has any U.S. nexus. Even if a VASP in Peru doesn't directly operate in the U.S., engaging in transactions with OFAC-sanctioned individuals, entities, or jurisdictions can lead to secondary sanctions, blocking of funds, and severe penalties.

  • Compliance Requirement: VASPs in Peru handling international transactions, especially those involving USD or U.S. persons/entities, are strongly advised to screen against OFAC's Specially Designated Nationals and Blocked Persons (SDN) List and other OFAC sanctions lists.
  • Legal Reference: U.S. federal laws and Executive Orders.
    • OFAC Sanctions Lists: https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-list-programs

• EU Sanctions (European Union): Similar to OFAC, EU sanctions are legally binding on EU member states and apply to EU persons and entities worldwide. For VASPs in Peru that have any connection to the EU (e.g., serving EU citizens, having EU partners, using EU-based service providers), compliance with EU sanctions is essential to avoid reputational damage, financial penalties, and disruption of services.

  • Compliance Requirement: VASPs with an EU nexus should screen against the EU Consolidated List of persons, groups, and entities subject to financial sanctions.
  • Legal Reference: Various EU Regulations and Decisions.
    • EU Sanctions Map (Consolidated List): https://www.sanctionsmap.eu/#/main

• FATF Recommendations for VASPs: While not a sanctions list directly, the FATF sets the global standards for AML/CFT, including specific guidance for virtual assets and VASPs. Peru is a member of the FATF-style regional body (GAFILAT) and generally adheres to FATF recommendations.

  • FATF Recommendation 15 specifically states that countries should regulate VASPs for AML/CFT purposes, subjecting them to all relevant FATF recommendations, including customer due diligence (CDD), record-keeping, and suspicious transaction reporting (STR/SAR).
  • Implication for Sanctions Compliance: This means that even without explicit Peruvian crypto legislation, the UIF-Perú expects VASPs to implement robust AML/CFT controls, which inherently include sanctions screening, as part of a risk-based approach to prevent money laundering and terrorism financing.
  • Legal Reference:
    • FATF Standards - International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation: https://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html
    • Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (FATF, March 2021): https://www.fatf-gafi.org/publications/fatfrecommendations/documents/guidance-rba-virtual-assets-2021.html

Peru's Domestic AML/CFT Framework for Compliance:

• Ley N° 30367 - Ley que protege al denunciante de actos de corrupción y sanciona el lavado de activos y el financiamiento del terrorismo (Law that protects the whistleblower of acts of corruption and sanctions money laundering and terrorism financing): This is the principal law against money laundering and terrorism financing in Peru. While it doesn't explicitly list "VASPs," it defines "obligated parties" (sujetos obligados) to include a wide range of financial and non-financial entities.
  • UIF-Perú's Stance: The UIF-Perú, as the implementing authority, expects all entities engaging in financial transactions that could be susceptible to ML/TF risks to have appropriate controls, including sanctions screening. The absence of specific crypto legislation does not exempt entities from these broader AML/CFT obligations, especially given the high inherent risk associated with virtual assets.
• Resolution SBS N° 789-2018: This resolution approves the "Regulation for the Management of the Risk of Money Laundering and Financing of Terrorism," which is broad and applies to obligated parties under SBS supervision. It references FATF standards and the need to address new technologies and financial products. This provides the framework for applying AML/CFT measures, including sanctions compliance, even to newer unregulated sectors where risk is identified.
  • UIF-Perú Website: https://www.uif.gob.pe/
  • Ley N° 30367: Available on official Peruvian government legal portals (e.g., El Peruano).
  • Resolution SBS N° 789-2018: Available on the SBS website: https://www.sbs.gob.pe/normativa/normas-generales (search for the resolution number).

2. Sanctioned Entity Screening Obligations

For VASPs operating in Peru, the screening obligations are primarily driven by the international sanctions regimes and the general AML/CFT framework.

• Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD): VASPs are expected to conduct CDD on all customers, including identity verification, and to apply EDD for higher-risk customers or transactions. Sanctions screening is a critical component of CDD/EDD.
• Transaction Monitoring: Continuous monitoring of transactions for unusual patterns, including those involving sanctioned jurisdictions or potentially sanctioned individuals/entities, is essential.
• Source of Funds/Wealth: For large or suspicious transactions, VASPs should seek to understand the source of the virtual assets or funds.
• Lists to Screen Against:
  • UN Consolidated Sanctions List.
  • OFAC Specially Designated Nationals (SDN) List and other relevant OFAC lists.
  • EU Consolidated List.
  • Any other relevant national or international lists identified through a comprehensive risk assessment.
• Automated Screening Solutions: Due to the volume and dynamic nature of sanctions lists, VASPs are expected to utilize robust, frequently updated automated screening software to check against these lists in real-time or near real-time, both at onboarding and throughout the customer lifecycle.

3. Geographic Restrictions

Geographic restrictions for cryptocurrencies in Peru are generally derived from international sanctions regimes. This means that VASPs should:

• Prohibit Transactions with Sanctioned Jurisdictions: Avoid engaging in any transactions directly or indirectly involving individuals, entities, or governments in countries subject to comprehensive sanctions (e.g., Cuba, Iran, North Korea, Syria, certain regions of Ukraine).
• Implement IP Blocking and Geofencing: While not always foolproof, using technological measures to restrict access to services from sanctioned geographies is a best practice.
• Exercise Caution with High-Risk Jurisdictions: Beyond officially sanctioned countries, VASPs should apply enhanced scrutiny to transactions involving jurisdictions identified as high-risk for ML/TF by FATF or other international bodies.

4. Penalties for Violations

Violations of AML/CFT laws, which would encompass a failure to comply with sanctions obligations, can lead to severe penalties under Peruvian law.

• Ley N° 30367 (Money Laundering and Terrorism Financing Law):

  • Imprisonment: Individuals found guilty of money laundering or financing terrorism can face significant prison sentences, often ranging from 8 to 15 years, and even higher for aggravated circumstances.
  • Fines: Substantial fines are also imposed, often calculated as multiples of the amount laundered or involved in the illicit activity.

• Administrative Sanctions by UIF-Perú/SBS:

  • Fines: The UIF-Perú, under the SBS, has the power to impose administrative fines on obligated parties (and potentially entities acting as VASPs due to the broad interpretation) for non-compliance with AML/CFT regulations, even if no actual money laundering or terrorism financing occurred. These fines can be significant.
  • Reputational Damage: Non-compliance can lead to severe reputational damage, loss of business, and difficulty in accessing traditional financial services.
  • Interruption of Operations: In extreme cases, authorities could order the cessation of operations.

• Secondary Sanctions (for OFAC/EU violations): While not direct Peruvian penalties, the consequences of failing to comply with OFAC or EU sanctions can be devastating for a Peruvian VASP:

  • Blocking of assets.
  • Prohibition from engaging with the U.S. or EU financial systems.
  • Inability to conduct transactions in USD or EUR.
  • Inclusion on sanctions lists itself.

5. Country-Specific Sanctions Lists that Apply to Crypto

Peru does not maintain its own separate national sanctions list beyond incorporating the UN Security Council sanctions. Its AML/CFT framework is designed to implement international standards. Therefore, for crypto, the relevant lists are the global ones:

• UN Consolidated Sanctions List.
• OFAC Specially Designated Nationals (SDN) List and other OFAC lists.
• EU Consolidated List.

The UIF-Perú expects entities to use these internationally recognized lists as part of their risk management and compliance programs.

In summary: While Peru's legal framework for cryptocurrencies is still developing, the absence of specific crypto legislation does not exempt VASPs from comprehensive AML/CFT obligations, which inherently include sanctions compliance. Peruvian VASPs must implement robust systems to screen users and transactions against global sanctions lists (UN, OFAC, EU) to avoid severe legal, financial, and reputational consequences, driven by Peru's international commitments and the broad reach of its AML/CFT laws.