I.

INTRODUCTION

Money laundering has been around since the 19th century to hide illegal liquor
smuggling and gambling businesses. They used a number of laundromats as a
front to justify the large amount of illicit money generated by their criminal
activities. In this way, the illicit money was laundered and apparently justified,
giving rise to the term: "MONEY LAUNDERING."

These concepts, money laundering, capital laundering and asset laundering,

refer to criminal activities sanctioned by the legislation of each country.

Money laundering, money whitening, money recycling or capital

legalization is usually identified in contemporary criminal law with the
same criminal phenomenon, which is linked to acts aimed at giving a
legal and legitimate appearance to the assets and profits that
originate or derive from a punishable illegal activity, such as drug
trafficking.

But the fact that the sale was in cash raises the problem of how to
explain the origin of his profits and his sudden fortune or economic
improvement. Consequently, in order for these profits or assets of
illegal origin to be able to enter the market and be registered
economically and for tax purposes, it is necessary to carry out
different operations and transactions that grant them apparent and
formal legality. This process is what is known as money laundering.

The public accountant plays a fundamental role in the prevention and

detection of money laundering by recording, analyzing and evaluating
the different accounting movements that occur in the company, thereby
contributing to the fulfillment of the entity's objectives, as well as verifying
whether the operations are carried out in accordance with the principles
and generally accepted accounting standards along with compliance
with the various provisions established in the Political Constitution, the
law and the policies established for the prevention of money laundering.

This report aims to analyze the acts, operations, stages and

mechanisms developed and used by the subjects reported for the
crime of money laundering in Peru.

II. MONEY LAUNDERING OBJECTIVES

 Determine the activities and operations used by the subjects reported for the
crime of money laundering in Peru
 Knowing the procedures and techniques used in the development of accounting
expertise to verify, check and explain the factual arguments of complaints about
money laundering.

III. THEORETICAL FRAMEWORK

III.1. DEFINITION OF MONEY LAUNDERING.

MONEY LAUNDERING is understood as the set of actions, operations, and

mechanisms of an economic and financial nature developed by individuals and legal
entities to give the appearance of legality to resources of illicit origin.

Taking this definition into account, we can refer to money laundering as money
generated from illicit operations and then its incorporation into the legal circuit.

III.2. MONEY LAUNDERING INDICATORS.

This social and economic phenomenon has great impacts on society and finances.
Nationals according to Jorge Chavez Cotrina1 presents indicators such as the following:

 More than a billion dollars are laundered annually through front companies
such as restaurants, hostels, gas stations, casinos and slot machines, businesses that
receive cash.
 Now the launderers have diversified their businesses, their front companies, money is
normally laundered in those businesses that have money movement in
cash.
 The drug trafficker or the criminal who generates illicit profits does not receive checks
from
management receives cash and that money has to be invested in some legitimate
commercial activity in order to mix it with the formal economy; such as restaurants,
hostels, gas stations, casinos, which move a lot of cash.

III.3. ILLEGAL ACTIVITIES RESULTING FROM MONEY LAUNDERING.

According to Art. 6° of Law No. 27765 Criminal Law Against Money Laundering, the
origin or illicit source of money laundering corresponds to illegal or punishable conduct and
activities in criminal legislation such as:
III.4. ACTS OF MONEY LAUNDERING.

The same Law 27765 Criminal Law Against Money Laundering establishes that the
following are ACTS of money laundering:

III.5. FINANCIAL INTELLIGENCE UNIT OF PERU (UIF)

According to LAW No. 27693, the Financial Intelligence Unit of Peru (UIF) is
created as a legal entity under public law, with functional, technical and
administrative, responsible for receiving, analyzing, processing, evaluating and
transmitting information for the detection of money laundering and/or terrorist
financing, as well as assisting the implementation by the obliged subjects of the system
to detect operations suspected of money laundering and/or terrorist financing.

Art. 3° of the legal basis cited on Functions of the UIF Peru refers to the concept of
SUSPICIOUS OPERATIONS (OS) that subjects are obliged to report and submit
Suspicious Operations Reports (ROS) to the UIF. In Art. 8° defines the subjects
obliged to report suspicious transactions.

Art. 11° numeral 11.3 in addition to referring to SUSPICIOUS OPERATIONS

It also mentions UNUSUAL OPERATIONS, as does its Regulation Supreme Decree
No. 018-2006; they define both types of operations as follows:
 III.6. HERITAGE.

The effects of the suspicious and unusual transactions identified go beyond cash and cash
equivalents; since the increases and decreases in this asset that originate from operating,
investment and financing activities; for the purposes of determining the
COMPREHENSIVE INCOME, generally include all transactions, whether cash or credit,
that is, they are accounted for under the ACCRUAL principle.

Focused on this principle and with a criterion of comprehensiveness, the three activities so
often cited generate: INCOME, COSTS, EXPENSES, PROFIT, LOSS, the main
components of the COMPREHENSIVE INCOME STATEMENT. They also generate:
INCREASES and DECREASES in ASSETS and LIABILITIES.

III.7. ACCOUNTING EXPERTISE

For the development of the accounting appraisal in the examination of ASSET CHANGES, the
following procedure will be followed:

 Check the opening balance of the equity accounts according to the note to the balance
sheet and the general ledger at the beginning of the period.
 Track increases in equity accounts (share capital, profits for the period, accumulated
profits, additional contributions, revaluation surpluses, etc.).
 Analyze the types of activities that generated the increases in assets.
 Track decreases in equity accounts (partner withdrawals, losses for the year,
accumulated losses, etc.).
 Analyze the types of activities that generated the decreases in assets.
 Check the final balance of the equity accounts according to the note to the balance sheet
and the general ledger at the end of the period.
 Determine and value the resulting equity balance or imbalance.

III.8. MONEY LAUNDERING CHARACTERISTIC

Considered an economic and financial crime, generally perpetrated by

white-collar criminals who handle large sums of money that give them a
privileged economic and social position.
 It includes a set of complex operations, with characteristics, frequencies
or volumes that fall outside the usual parameters or are carried out
without economic sense.

It transcends international dimensions, since it has advanced

technological development of financial channels worldwide.

III.9. MODUS OPERANDI

The experts from FOPAC-INTERPOL, “Division of Investigation of Funds from International

Criminal Courts”
of Criminal Activities” takes place, fundamentally, through the following actions:

to. The acquisition of easily marketable consumer goods such as real estate, cars, jewelry,
works of art, etc.

b. The surreptitious and illegal export of dirty money and its deposit in encrypted, secret and
unnamed accounts, mainly in the so-called "Safe Haven Countries or Financial Countries."

c. Financing of companies linked to the service sector, and which by their own
The nature of their business requires liquidity and a constant availability of cash, such as
currency exchange, casinos, travel agencies, hostels, restaurants, gasoline services, insurance
companies, etc.

d. The conversion of illegal money, through local financial organizations, into convenient means
of payment such as cashier's checks, traveler's checks, cashier's vouchers, credit cards, or
deposit into multiple current accounts but with low fund coverage.

III.10. STAGES OF THE MONEY LAUNDERING PROCESS ARE:

a. Placement stage: This involves the prior study that the money laundering
agent must carry out of the financial system, in order to distinguish the
financial intermediation agencies that are more flexible in controlling the
operations carried out by their clients. To then deposit dirty money in
them and obtain payment instruments such as checkbooks, credit cards,
cashier's checks, etc.

b. Intercalation stage: As its name indicates, in this stage the money

laundering agent intercalates successive financial or commercial
operations using the payment instruments received from the financial
system in the previous placement stage. With them, most of the time, the
agent will acquire real estate, vehicles, luxury yachts, precious stones,
gold, etc. And then these goods will be resold to third parties even below
their price, but with a particular requirement, that they are not paid in
cash, but through checks or through exchange with shares of property
type.

c. Integration stage: This takes place with the insertion of the money
already “laundered” by the preceding stages into new financial entities or
its repatriation from abroad. In order to then be invested in legitimate
companies, real or simulated, but which are provided with their
 corresponding accounting and tax records, which will mean that the
originally illegal capital can now express an ostensible and verifiable
legitimacy against any conventional accounting or tax control means or
procedure.

III.11. SUNAT AND MONEY LAUNDERING

According to its statutes, it is not directly linked to the fight against

MONEY LAUNDERING.
BUT IT IS INDIRECTLY LINKED AS FOLLOWS:
 In its audit processes, it detects increases in assets that are
inconsistent with declared income.
 According to the Constitutional Court, illicit income is subject to
taxation
 It is obliged to provide information to the UIF

3.12. SECTORS VULNERABLE TO MONEY LAUNDERING OPERATIONS IN

PERU.

INVESTIGATIONS SHOW ACTS OF MONEY LAUNDERING IN THE

FOLLOWING SECTORS:
• casinos and gambling houses
• informal foreign exchange market
• foreign currency exchange houses
• travel agencies
• tourism services
• Promotion of artistic or sporting events
• stock trading
• Importation of household appliances
• loan and pawn shops
• hostels
• restaurants
• gasoline pumps
• real estate construction.

3.12.Who is required to report suspicious transactions?

The following sectors, among them are:
:
 The financial system, insurance and AFPs.
 Stock and commodity exchanges
 Casinos and slot machines
 Hotels, restaurants, travel and tourism agencies.
 Notaries
  People engaged in the buying and selling of weapons.
 Bingo halls and racetracks
 Companies dedicated to the purchase and sale of vehicles.
 Companies dedicated to construction

VI. CONCLUSIONS:

 The procedures and techniques applicable to the verification, checking, greater

knowledge and understanding by the jurisdictional bodies of suspicious and unusual
operations that are the objects or facts subject to accounting expertise
in complaints about the crime of money laundering.
 Cash flows and changes in assets that occur in unusual, unjustified magnitudes or speed
of rotation, without apparent economic or lawful basis.
 The UIF is involved in the prevention and detection of money laundering.
 The FIU OF PERU, the suspicious and unusual operations are:
 Cash deposits: in current accounts, savings accounts, fixed-term deposits and
other term deposits.
 Cash purchase and sale of foreign currency.
 To conclude, I can say that although this is a crime that has its origin in another, it
is important to keep in mind the consequences that it brings, since it is possible for
it to occur in any field (commercial, financial, sports, etc.).