Peruvian Crypto Companies Required to Implement New Rules to Prevent Money Laundering

The cryptocurrency landscape in Peru is undergoing a significant transformation. New regulations are being rolled out, requiring Peruvian crypto companies to implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) measures. But what does this mean for users and the future of crypto in Peru? Let’s dive in.

Peru Rolls Out New KYC and AML Mandates for VASPs

The Peruvian Banking and Insurance Superintendent (SBS) has officially announced new compliance measures for Value Added Service Providers (VASPs) operating within the country. This resolution mandates that Peruvian crypto companies implement comprehensive KYC and AML policies to combat financial crime.

Key Aspects of the New Regulations:

• KYC and AML Implementation: Peruvian crypto companies must now establish thorough KYC and AML policies to verify user identities and monitor transactions.
• Compliance Officer: Each VASP is required to appoint a compliance officer responsible for implementing and overseeing AML and Terrorism Financing (TF) policies.
• Transaction Monitoring: Enhanced due diligence is required, especially for transactions exceeding $1,000.
• Travel Rule Compliance: VASPs must adhere to the Travel Rule, treating virtual asset transfers like electronic transfers, ensuring transparency and traceability.

Why are these regulations being introduced?

These new regulations are a direct response to recommendations from the Financial Action Task Force (FATF), the global watchdog dedicated to combating money laundering and terrorist financing. By implementing these measures, Peru aims to prevent the criminal exploitation of virtual asset platforms and foster a more secure and transparent crypto ecosystem.

How will these regulations affect Peruvian crypto companies?

The regulations directly impact the operational activities of Peruvian crypto companies. These companies will need to adapt their existing systems and processes to comply with the new requirements.

Key Impacts:

• Enhanced Due Diligence: Crypto companies must implement stricter KYC procedures to verify the identities of their users.
• Transaction Monitoring: Continuous monitoring of transactions to detect and report any suspicious activity.
• Reporting Obligations: VASPs will be required to report transactions that exceed a certain threshold to the relevant authorities.
• Operational Adjustments: Companies may need to invest in new technologies and training programs to ensure compliance.

What is the Timeline for Implementation?

Existing Peruvian crypto companies have been granted a 120-day grace period to align their operations with the new resolution. This provides a window for companies to make the necessary adjustments to their systems and processes.

In Summary

Peru’s move to regulate the crypto space with stringent KYC and AML policies signals a proactive approach to safeguarding its financial system. While these regulations may present initial challenges for Peruvian crypto companies, they are essential for fostering a secure and sustainable crypto ecosystem. By complying with these new rules, Peru is taking a significant step towards preventing money laundering and ensuring the responsible growth of the virtual asset industry.