The Superintendence of Banking and Insurance (SBS) of Peru has introduced a new resolution that mandates Virtual Asset Service Providers (VASPs) to enhance their compliance frameworks by integrating Know Your Customer (KYC) protocols and Anti-Money Laundering (AML) measures.
The Superintendence of Banking and Insurance (SBS) of Peru has introduced a new resolution that mandates Virtual Asset Service Providers (VASPs) to enhance their compliance frameworks by integrating Know Your Customer (KYC) protocols and Anti-Money Laundering (AML) measures. This regulatory action aligns with the Financial Action Task Force (FATF) guidelines and aims to prevent the misuse of these platforms for illegal activities.
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Peru Implements Comprehensive KYC and AML Requirements for VASPs
Peru has taken significant steps to regulate the activities of Virtual Asset Service Providers (VASPs) within its jurisdiction. Recently, the SBS of Peru released Resolution No. 02648-2024, which sets forth a series of mandatory protocols for these entities to reduce the risk of their services being exploited for unlawful purposes.
The resolution stipulates that all VASPs operating in Peru must appoint a compliance officer and establish robust systems to enforce Anti-Money Laundering (AML) and Terrorism Financing (TF) controls. Additionally, these platforms are required to implement stringent Know Your Customer (KYC) procedures and conduct thorough due diligence on transactions exceeding $1,000. This aligns with the “travel rule,” which mandates that all virtual asset transfers be treated similarly to electronic funds transfers.
According to the SBS, these regulations are designed to adhere to the FATF’s recommendations, reinforcing the framework established by Presidential Decree No. 006-2023-JUS. This decree previously classified VASPs as entities under the oversight of the Financial Intelligence Unit – Peru (UIF-Peru).
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However, it’s important to note that these regulations specifically target VASPs and not the cryptocurrencies themselves, focusing solely on the transactions managed through custodial wallets operated by these providers. Existing VASPs in Peru have been given a 120-day window to update their compliance structures to meet the new regulatory standards.
