Search

 

Cablegate: Peruvian Banking Superintendent Talks About Future of Fiu

VZCZCXYZ0008
RR RUEHWEB

DE RUEHPE #0099/01 0282052
ZNY CCCCC ZZH
R 282052Z JAN 10
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 0624
INFO RUEHAC/AMEMBASSY ASUNCION
RUEHBO/AMEMBASSY BOGOTA
RUEHBR/AMEMBASSY BRASILIA
RUEHBU/AMEMBASSY BUENOS AIRES
RUEHGT/AMEMBASSY GUATEMALA
RUEHLP/AMEMBASSY LA PAZ
RUEHME/AMEMBASSY MEXICO
RUEHMN/AMEMBASSY MONTEVIDEO
RUEHPE/AMEMBASSY LIMA
RUEHQT/AMEMBASSY QUITO
RUEHSG/AMEMBASSY SANTIAGO

C O N F I D E N T I A L LIMA 000099

SIPDIS

E.O. 12958: DECL: 2020/01/28
TAGS: ASEC EFIN SNAR PE KCRM KTFN
SUBJECT: Peruvian Banking Superintendent Talks about Future of FIU
and GAFISUD Priorities

CLASSIFIED BY: kathy schleigh, OMS, ...

id: 246091
date: 1/28/2010 20:52
refid: 10LIMA99
origin: Embassy Lima
classification: CONFIDENTIAL
destination:
header:
VZCZCXYZ0008
RR RUEHWEB

DE RUEHPE #0099/01 0282052
ZNY CCCCC ZZH
R 282052Z JAN 10
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 0624
INFO RUEHAC/AMEMBASSY ASUNCION
RUEHBO/AMEMBASSY BOGOTA
RUEHBR/AMEMBASSY BRASILIA
RUEHBU/AMEMBASSY BUENOS AIRES
RUEHGT/AMEMBASSY GUATEMALA
RUEHLP/AMEMBASSY LA PAZ
RUEHME/AMEMBASSY MEXICO
RUEHMN/AMEMBASSY MONTEVIDEO
RUEHPE/AMEMBASSY LIMA
RUEHQT/AMEMBASSY QUITO
RUEHSG/AMEMBASSY SANTIAGO


----------------- header ends ----------------

C O N F I D E N T I A L LIMA 000099

SIPDIS

E.O. 12958: DECL: 2020/01/28
TAGS: ASEC EFIN SNAR PE KCRM KTFN
SUBJECT: Peruvian Banking Superintendent Talks about Future of FIU
and GAFISUD Priorities

CLASSIFIED BY: kathy schleigh, OMS, State, NAS; REASON: 1.4(B)

Peruvian Banking Superintendent Talks about Future of FIU and
GAFISUD Priorities


1. (SBU) Summary: Peru's Superintendent of Banking Felipe outlined
his vision for the Financial Intelligence Unit (FIU) moving forward
and discussed his priorities as the new chairman of GAFISUD (spell
out first usage) in a January 22 meeting with Emboffs. Accompanied
by International Affairs Manager Jorge Yumi, and new FIU Director
Sergio Espinosa, Tam emphasized that the investigative priorities
for the FIU remain unchanged despite the recent change in
leadership and that they are looking forward to continued
cooperation with the U.S. Embassy. Tam said he will continue to
support proposed legislation to strengthen anti-money laundering
investigations and modernize the FIU as well as push at the highest
levels to ensure that anti-money laundering is a priority in the
GOP. End

Summary.


The FIU - Enrique Salvidar Steps Down, New Head Appointed


2. (SBU) On December 2nd, Enrique Salvidar resigned his position as
head of the FIU citing personal and family reasons. At the time,
there was intense speculation that he had stepped down at the
request of Superintendent of Banking Felipe Tam as a result of an
information leak scandal (REF A). No formal charges have been filed
against Salvidar or Tam, but the Public Ministry is looking into
the matter and how to ensure better control of investigative
information. On December 8th, Sergio Espinosa was appointed as the
new FIU Director. No other staff changes have occurred - the Deputy
Director remains in place as do the section heads. For the time
being, Espinosa will be wearing two hats as he is also head of
Superintendency of Banking's (SBS) legal department. Espinosa has
worked in the SBS for over 15 years in various departments.


FIU - Looking Forward


3. (U) Tam explained that the FIU will be implementing a new
software system that will allow the FIU to receive Suspicious
Activity Reports (SARs) electronically and is looking to
restructure the organization to give more authority to the FIU
Director. Tam is also looking to relocate the FIU offices to a
larger, more secure building. When asked about his plans for
strengthening the day-to-day work of the FIU, Tam said he is
pushing proposed legislation in Congress that would grant FIU
access to any type of financial information such as banking and tax
information that is currently considered secret or restricted. Tam
and Espinosa both said the priorities and the training needs of the
FIU remain unchanged and they expect things to move forward
smoothly, despite the leadership change. Tam's View on Money
Laundering in Peru


4. (C) Tam feels that the highest levels of the GOP need to have a
deeper understanding of the connections between money laundering
and drug trafficking. He also acknowledged that the money exchange
houses are a black hole in the FIU's understanding of how money
moves through the Peruvian financial sector. (NOTE: most of the
money exchange houses operate in the informal sector and thus there
is little-to-no official reporting to the FIU, though it is legally
required). It is Tam's opinion that although addressing the role
of exchange houses is difficult, it is not impossible because,
according to Tam, all the money must go through a bank at some
point. Tam also said that there needs to be more coordination on
the gaming sector between the SBS and the Ministry of Tourism (REF
B). He feels that if they can get at the gaming sector, the money


exchange houses, and the construction sector, they will have
tackled the greatest part of the money laundering problem in Peru.



5. (C) Tam also explained the challenges in working with the Public
Ministry. Espinosa agreed and said they are working to maintain
open communication with the prosecutors who work money laundering
cases. One change they will be making this year, at the request of
the Public Ministry, is that the FIU will begin filtering Financial
Intelligence Reports (FIR) sent to the Prosecutor's Office for
further investigation. The Public Ministry has asked that, rather
than sending everything over, the FIU prioritize and focus on
prosecutable cases. This is a significant change from the past
modus operandi because it will give the FIU more authority and
ability to prioritize cases. Tam said that one of his personal
challenges with the Public Ministry is convincing the attorney
general that anti-money laundering work is priority work across the
board and especially in counter narcotics. Currently, the SBS pays
salaries for two financial analysts in the Public Ministry and has
an agreement with the Magistrates Academy to support anti-money
laundering and terrorist financing courses. Tam said his vision is
to advance anti-money laundering work in Peru more so than ever
before.


Priorities for GAFISUD


6. (SBU) With Peru chairing GAFISUD this year, Tam said his
priorities include improving the professionalism of the GAFISUD
Secretariat and supporting the intentions of Costa Rica and Panama
to join GAFISUD. At the GAFISUD meeting in July, Tam said, he plans
to discuss the inclusion of Costa Rica and Panama as well as the
need to develop a series of meetings with Bolivia, Ecuador, and
Paraguay which are struggling to implement the 40+9 recommendations
established by GAFI-FATF (Financial Action Task Force) and adopted
by GAFISUD. Tam said he is also looking to push micro-finance as a
major tool for GAFISUD countries to address the informal sectors -
a serious issue in Peru. Tam believes that by reducing the informal
sector, governments can reduce avenues of money laundering,
increase access to credit for lower income individuals and families
and better regulate the financial sector.



National Anti-Money Laundering and Terrorism Financing System


7. (SBU) Tam explained that another of his top priorities for the
SBS is to launch a national anti-money laundering and terrorist
financing system (SILAFIT), an interagency task force led by the
Ministry of Economy and Finance with the SBS as the Technical
Secretariat. Tam said there is political support for this idea and
the Minister has agreed in principle to the SILAFIT structure.
However, Tam feels that international support, especially from the
U.S., would help with this priority.


Comment


8. (SBU) The transition of leadership in the FIU seems to be going
smoothly and post is encouraged by the commitment of Espinosa to
maintain the FIU priorities developed under Salvidar. Tam expressed
several times his hope that NAS will continue with cooperation and
assistance to the FIU and said he may be looking to the U.S.
Embassy for support on policy issues related to anti-money
laundering. We will continue to support the FIU and seek ways


encourage improvements in prosecutions and convictions of money
launderers.
McKinley

=======================CABLE ENDS============================

© Scoop Media

 
 
 
World Headlines

 

UN: Decades Of Health Gains At Risk In Brazil Due To COVID-19

Although COVID-19 cases are declining in Brazil, the pandemic is putting decades of public health gains there at risk, the head of the World Health Organization ( WHO ) said on Friday. With global attention and support focused this week ... More>>

UN Report: Myanmar Approaching Point Of Economic Collapse

The turmoil following the military coup in Myanmar, coupled with the impact of COVID-19 could result in up to 25 million people – nearly half of the country’s population, living in poverty by early next year, a United Nations report said on Friday. That ... More>>

World Vision: India’s Second Wave Shows The Global Fight Against COVID-19 Is Far From Won

As India’s COVID-19 daily infection rates reach devastating levels, international aid agency World Vision has warned that the world is nowhere near defeating this virus and some nations are yet to face their worst days. Andrew Morley, World Vision ... More>>

Focus On: UN SDGs

Study: Cut Methane Emissions To Avert Global Temperature Rise

6 May 2021 Methane emissions caused by human activity can be reduced by up to 45 per cent this decade, thus helping to keep global temperature rise to 1.5 degrees Celsius in line with the Paris Agreement on climate change, according to a UN-backed ... More>>

UN: Learning From COVID-19, Forum To Highlight Critical Role Of Science, Technology And Innovation In Global Challenges

New York, 4 May —To build on the bold innovations in science, technology and innovations that produced life-saving solutions during the COVID-19 pandemic, the UN will bring together experts to highlight measures that can broaden the development and deployment ... More>>

What COVID-19 Has Taught Us: “Healthcare Can No Longer Exist Without Technology”

A grandmother in a village in the Gambia should have the same quality of life and access to healthcare they deserve as in New York or London. Photo: InnovaRx Global Health Start-up Works To Bridge Healthcare Gap In The Gambia By: Pavithra Rao As ... More>>