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Peru’s Superintendencia de Banca, Seguros y AFP (SBS) has officially sanctioned a new money laundering and terrorist financing (AML/CFT) prevention regulatory framework specifically targeted at companies operating online sports betting and gaming platforms under the auspices of the Ministry of Foreign Trade and Tourism (Mincetur).
This is a huge step in the unification of Peru’s regulatory system for the iGaming sector, subjecting online operators to the same strict standards reserved for financial institutions and land casinos.
A Unified Effort to Tighten Regulation
SBS joined hands with Mincetur to create the new framework, as inputs from the public and industry associations were considered while conducting the consultation process. The regulator informed that the overall objective of the regulation is to “establish requirements, obligations, procedures, and guidelines to which such organizations will be obliged to adhere to prevent money laundering and terrorist financing, according to international standards and best practices.”
This framework aims to close the gaps in supervision, with a view to fully integrating online gambling sites into the country’s AML/CFT system.
Key Components of the AML/CFT Framework
The recently passed regulation suggests a comprehensive system addressing several features of compliance, including:
- Customer due diligence (CDD): The operators must put in place robust measures to ensure customer verification, including directors, employees, and suppliers.
- Training and education: Formal training programs need to be conducted by all staff handling compliance and operations.
- Compliance officer designation: Every operator is to designate a primary and alternate compliance officer for the implementation and follow-through on AML/CFT controls.
- Record-keeping and reporting: Full records of transactions and suspicious transactions should be maintained and reported to the SBS Financial Intelligence Unit (UIF).
- Annual reporting: Compliance officers should prepare annual reports laying out the efficacy of the prevention system and steps taken in the course of the year.
Operators are given 120 days to make or change their systems in order to meet these standards.
Strengthened Enforcement and Penalties
SBS Superintendent Sergio Espinosa emphasized that iGaming operators in Peru are now officially recognized as “obligated subjects” under AML/CFT legislation. Although still within the remit of Mincetur, it is the UIF of the SBS to which suspicious transaction reports are submitted.
Espinosa explained that online gambling may be exploited in illegal money laundering, particularly through false winnings or fixed transactions. Accordingly, operators need to promptly report suspicious transactions just like land casinos.
He further added that the penalties for non-compliance, particularly the failure to report suspicious transactions, range from up to 10 Tax Units (UIT), which is equivalent to approximately PEN 53,500 (USD 15,620). However, he stressed that the purpose of sanctions is not always to generate revenue but to find compliance and transparency.
“The UIF is not after fines, it’s after compliance. What matters is the obligation and the information, not the money. The penalty is there as a deterrent“, stated Espinosa.
Toward a Safer and More Transparent iGaming Market
This regulatory milestone solidifies Peru’s dedication to responsible gaming and financial transparency. Internet gambling operators subject to the new AML/CFT regime will be required to achieve the same compliance level as financial institutions, positioning Peru’s industry best practices on par with global regulatory standards.
Through the promotion of integrity and the prevention of economic crime, the SBS and Mincetur are setting the pace for other Latin American legal jurisdictions that seek to couple market development with consumer protection and legal behavior.
Source: YogoNet
