PERU Law and Practice Contributed by: Andrés Kuan-Veng and Luis Ernesto Marín, Rubio Leguía Normand
Rubio Leguía Normand Av Dos de Mayo 1321 San Isidro
Lima Peru Tel: +51 1 208 3000 Email: abogados@rubio.pe Web: www.rubio.pe
1. Legal Framework 1.1 Key Laws and Regulations
• ensure the financial stability of the institutions it oversees; and • penalise violations of banking regulations. Its responsibilities include: • reviewing and approving the establishment and organisation of subsidiaries of regulated institutions; • overseeing mergers, dissolutions and reor - ganisations of financial institutions and insur - ance companies; • supervising financial and insurance compa - nies, including non-bank holding companies; • reviewing and approving company by-laws and amendments; • setting criteria for transferring bank shares and determining asset and liability valuations; • managing the Central de Riesgos (Bank Risk Assessment Center), where all banks report data on businesses and individuals they deal with; and • supervising anti-money laundering efforts through the financial intelligence unit. The SBS enforces the Peruvian Banking Law via periodic resolutions. The Law mandates strin - gent loan loss reserve standards, aligns asset risk weighting with Basel Committee guidelines,
The primary law governing Peru’s financial sys - tem is Law No 26702, Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica de la Superintendencia de Banca y Seguros , enacted in December 1996 (the “Peruvian Bank - ing Law”). The Peruvian Banking Law sets the regulatory and supervisory framework for finan - cial institutions, insurance companies, and enti - ties engaged in complementary activities. Peruvian banks and financial institutions are pri - marily regulated and supervised by the following institutions. Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones (SBS) The SBS is the regulatory authority responsible for implementing and enforcing the Peruvian Banking Law, overseeing all banks and finan - cial institutions in Peru. Since July 2000, it has also regulated private pension funds. The SBS’s objectives are to: • protect the public interest;
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