PERU Law and Practice Contributed by: Andrés Kuan-Veng and Luis Ernesto Marín, Rubio Leguía Normand
managers, ensuring transparency in the appointment process. 4.3 Remuneration Requirements In Peru, remuneration requirements for banks are established under the Reglamento de Gobi- erno Corporativo y de la Gestión Integral de Riesgos (Regulations on Corporate Govern - ance and Comprehensive Risk Management), approved by the SBS. These requirements aim to align compensation practices with the insti - tutions’ strategic goals, risk management and good governance principles. Banks and other financial institutions must implement a remuneration system for employees and board members that is consistent with their business strategy and policies while avoiding potential conflicts of interest. This system must correspond to the nature, size and complexity of the company’s operations and services. The Regulations mandate that the remunera - tion system includes policies and procedures to define the criteria and indicators for determining variable compensation for employees and board members, where applicable. These criteria and indicators must align with the objectives of their specific roles, as well as the frequency and form of payment. Employees and board members must also have access to these policies. Variable compensation must reflect the com - pany’s overall performance and long-term man - agement. The time horizon associated with such compensation should account for the inherent risks of the company’s operations. Furthermore, the regulations specify conditions under which protective clauses or agreements guaranteeing variable compensation payments may be invalidated.
All criteria and policies must be included in the contracts between the company and its employ - ees, as well as in the acceptance documents signed by board members.
5. AML/KYC 5.1 AML and CFT Requirements
In Peru, the anti-money laundering (AML) and counter-terrorist financing (CFT) requirements applicable to the banking sector are primar - ily governed by the legislation establishing the Unidad de Inteligencia Financiera (UIF-Perú). Under this legal framework, financial institutions are designated as obligated entities required to report suspicious activities to the UIF. Overall, the legal framework for AML and CFT in Peru requires financial institutions to implement comprehensive measures to prevent money laundering and terrorist financing. This includes establishing effective reporting systems, risk management protocols, and a strong commit - ment to compliance at all organisational levels. By adhering to these requirements, financial institutions play a crucial role in maintaining the integrity of the financial system and support - ing national and international efforts to combat financial crimes. Reporting Obligations • Suspicious activity reporting: financial insti - tutions must maintain a Registro de Opera- ciones (Operations Register) and report any suspicious or unusual transactions attempted or conducted. This reporting is crucial for the prevention and detection of money laundering and terrorist financing.
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