Peru -- Travel Rule Implementation Regulatory Overview

The implementation of the FATF Travel Rule in Peru is currently in an evolving state, characterized by the application of existing general AML/CFT frameworks to Virtual Asset Service Providers (VASPs) and the ongoing discussion of specific legislation to fully codify the Travel Rule.

Here's a breakdown:

1. Whether Adopted

• De jure (Specific Legislation): The FATF Travel Rule (Recommendation 16) has not yet been formally adopted through specific, dedicated legislation in Peru.
• De facto (Existing AML/CFT Frameworks): However, Peruvian authorities, primarily the Superintendencia de Banca, Seguros y AFP (SBS), which oversees financial institutions, and the Unidad de Inteligencia Financiera del Perú (UIF-Perú), the financial intelligence unit, have indicated that Virtual Asset Service Providers (VASPs) are considered "obliged subjects" under existing AML/CFT laws. This means they are expected to apply AML/CFT measures, including customer due diligence (CDD) and suspicious transaction reporting (STRs), similar to traditional financial institutions.
  • Key Reference: Resolución SBS N° 789-2018, published by the SBS, established the "General Framework for the Management of Money Laundering and Terrorism Financing Risk," and importantly, it included virtual asset exchange platforms and digital wallet providers within its scope of entities that must implement AML/CFT measures. While not explicitly the Travel Rule, it brought these entities under AML/CFT scrutiny.
• In Progress (Draft Legislation): There are draft legislative proposals aimed at regulating crypto assets and service providers more comprehensively, which are expected to explicitly include the FATF Travel Rule requirements.
  • Key Reference: Proyecto de Ley N° 1827/2021-CR (and subsequent discussions/revisions, e.g., Proyecto de Ley N° 5716/2023-CR) "Ley Marco para la Comercialización de Criptoactivos," has been debated in the Peruvian Congress. This draft law aims to establish a regulatory framework for crypto assets and VASPs, and it is anticipated to incorporate the FATF Travel Rule's provisions requiring information exchange for transactions above a certain threshold.

2. Effective Date

• For existing AML/CFT obligations: VASPs have been considered obliged subjects under the framework established by Resolución SBS N° 789-2018 (and prior general AML/CFT laws like Ley N° 27693 - Ley que crea la Unidad de Inteligencia Financiera del Perú and its subsequent modifications) since their respective publication dates.
• For explicit Travel Rule implementation: This will come into effect once the proposed specific legislation (like Proyecto de Ley N° 1827/2021-CR or its final version) is approved by Congress, promulgated, and published in the official gazette. As of late 2023/early 2024, this has not yet occurred.

3. Threshold Amounts

• Currently (Under existing AML/CFT): There are no specific Travel Rule thresholds explicitly defined for VASPs as the dedicated legislation is pending. However, existing AML/CFT regulations typically establish thresholds for reporting suspicious or large cash transactions that might indirectly apply.
• Anticipated (Once adopted): Based on FATF guidance, the Travel Rule applies to transactions involving virtual assets above USD/EUR 1,000 (or equivalent) for cross-border transfers and USD/EUR 3,000 (or equivalent) for domestic transfers (though many jurisdictions opt for the lower $1,000 for both for simplicity and greater coverage). It is highly likely that any specific Peruvian legislation will adopt these FATF-recommended thresholds.

4. Which VASPs are Covered

• Under Resolución SBS N° 789-2018, the following are broadly considered within scope:
  • Virtual asset exchange platforms (plataformas de intercambio de activos virtuales)
  • Digital wallet providers (proveedores de billeteras digitales)
• Once specific legislation is enacted, it is expected to cover all types of Virtual Asset Service Providers (VASPs) as defined by FATF, including:
  • Exchanges (fiat-to-crypto, crypto-to-crypto)
  • Transfer providers
  • Custodians (wallet providers, especially custodial ones)
  • Brokerage services
  • Issuers of new crypto assets (ICO/STO platforms, if they facilitate transfers)
  • Potentially, any entity facilitating the transfer, exchange, or safekeeping of virtual assets for or on behalf of customers.

5. Technical Implementation Requirements

• Currently: Since there isn't dedicated Travel Rule legislation, there are no specific technical implementation requirements mandated by Peruvian law. VASPs operating in Peru are expected to have internal AML/CFT policies and procedures, including robust customer identification and verification (KYC) processes.
• Anticipated (Once adopted): If the draft law passes, VASPs would be required to implement technical solutions to collect, hold, and transmit the required originator and beneficiary information, which includes:
  • Originator's Name
  • Originator's Account Number (or wallet address used to process the transaction)
  • Originator's Physical (Geographic) Address, OR National ID Number, OR Customer ID Number, OR Date and Place of Birth.
  • Beneficiary's Name
  • Beneficiary's Account Number (or wallet address used to process the transaction)
  • Common technical solutions for this include protocols based on the InterVASP Messaging Standard (IVMS 101), such as TRISA, OpenVASP, Sygna, or other peer-to-peer or centralized solutions.

6. Penalties for Non-Compliance

• Currently (Under existing AML/CFT): VASPs, as "obliged subjects," are subject to the general penalties for non-compliance with AML/CFT regulations in Peru, as enforced by the SBS and UIF. These can include:
  • Fines: Significant monetary penalties based on the severity and recurrence of the infraction.
  • Administrative sanctions: Orders to cease certain operations, suspension or revocation of licenses (if applicable to a regulated entity), and administrative intervention.
  • Reputational damage: Public disclosure of non-compliance.
  • Criminal charges: In cases involving actual money laundering or terrorist financing, individuals and entities can face criminal prosecution under Peruvian penal codes.
• Anticipated (Once adopted): The proposed specific legislation (Proyecto de Ley N° 1827/2021-CR) is expected to define clear and specific penalties for non-compliance with its provisions, including those related to the Travel Rule. These penalties would likely be substantial to ensure deterrence and align with international standards.

Relevant URLs:

• Superintendencia de Banca, Seguros y AFP (SBS):
  • Main website: https://www.sbs.gob.pe/
  • (Search for Resolución SBS N° 789-2018 and related AML/CFT regulations on their site.)
• Unidad de Inteligencia Financiera del Perú (UIF-Perú):
  • Main website: https://www.uif.gob.pe/
  • (Search for guidance on obliged subjects and virtual assets.)
• Congreso de la República del Perú (for draft laws):
  • Main website: https://www.congreso.gob.pe/
  • (Search for "Proyecto de Ley N° 1827/2021-CR" or "Proyecto de Ley N° 5716/2023-CR" or "Ley Marco para la Comercialización de Criptoactivos" in their parliamentary documentation.)
• FATF Recommendations:
  • FATF Guidance for VAs and VASPs: https://www.fatf-gafi.org/publications/fatfrecommendations/guidance-r15-vasp.html (This is the foundational document for the Travel Rule).

In summary: Peru is making strides towards formalizing crypto asset regulation, with existing AML/CFT laws already applying to VASPs. The full, explicit implementation of the FATF Travel Rule is anticipated through ongoing legislative efforts, which once approved, will define the exact parameters, thresholds, and technical requirements.