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2007/ACT/WKSP1/017

Peruvian Anti-Corruption Activities, Experiences and New Legislation- A Case Study and Lessons Learned

Submitted by: Peru

/ Workshop on Strengthening Cooperation Mechanisms in the Asia-Pacific in the Fight Against High-Level CorruptionLima, Peru29-31 October 2007

PERUVIAN ANTI-CORRUPTION ACTIVITIES, EXPERIENCES AND NEW

LEGISLATION- A CASE STUDY AND LESSONS LEARNED

MINISTRY OF JUSTICE – PERU

Walter Hoflich Cueto

Between 1990 to the year 2000, Perú was hit by corruption powers. All the states organization were taken by officials of the state. They took the electoral system, the judiciary system, the congress etc. Also private sectors were linked, as an in out corruption.

Immediately, after the criminal organized corruption was discovered, a lot of laws were enforced. Recently, 3 months ago, to be exact these laws were modified through decrees, in order to strengthen them. To make better rules against organized crime, not only corruption, also Money Laundering,Terrorism, Extortion, kidnapping, Drug Trafficking and Human Trafficking.

And what laws?

THE MAINS ONES ARE:

̵Proceedings of Agreement of benefits for efficient collaboration, as a plea bargain to reduce or exempt the punishment, in order to achieve valuable evidence. And information such as discovery assets, identity bank accounts, start and speed asset recovery, etc….

̵Procedure for the adoption of exceptional measures in the limitation of rights during preliminary investigations, such as seizure, arrest order, etc.

̵Procedure foreseen when dealing with major officials, who are included in article 99 of the Constitution, signifies that: under immunity, for adoption exceptional measures, for example to avoid can escape during a preliminary investigation.

̵Also Anti money laundering Penal Law. This law was enforced since 2002, there are others.

One of the DECREES, the most favorable for my country is the new process named “PÉRDIDA DE DOMINIO”, which permits the recovery of the crime proceeds, to be used to reinforce the institution involved in the investigations against organized crimes. And to prevent money laundering.

“PÉRDIDA DE DOMINIO”, It is not a penal action, IT is an autonomous proceeding. This process can operate side by side with the process against the criminals. The application of PD is made on the basis, that the assets are the proceeds of some form of unlawful activity and could be used to finance other crimes.

Evidently, the property must be obtained in accordance with the law and with the best interest of everybody.

The law “PÉRDIDA DE DOMINIO”, was proposed by the Minister of Justice Dra. María Zavala, and the law was strongly supported by the President Alan Garcia.

Why …?

Well, criminals who are part of an organization, usually don’t mind being in a jail. So the better strike against them, is to take away what they have earned from their crime acts, and use it to developed our countries.

So, in the high level of corruption, surely the proceeds of the crime is a lot. The proceeds opens the door to other crime, such as: MONEY LAUNDERING. Corruption is strongly linked with money laundering. To “wash THE MONEY” many authorities can be corrupted. The corruption is a “vicious circle”.

If we want, to help to make our economies better, it is very important to fight against the proceeds of the corruption. Why?.... Because the proceeds of the crime can promote the economy through the informal procedures.

Now, inside the law system of different countries, there are radical changes to battle against the illicit assets, which are moving through the economy. The changes, also help to built up trust with investors and to promote the investments between countries

Another goal, is: “How to make the cooperation between APEC countries easier”.

For example, during the space of 3 years, Peru has contracted an enterprise, to find out where the stolen money went, from 1990 to the year 2000. In total Peru spent $350,000 dollars, with that contractor………but couldn’t get any information about bank accounts.

Fortunately, in 2005 a Peruvian journalist told us that in Panama there were some investigations about money laundering, and there were some Peruvian citizen involved too. Then using the United Nations Convention against Corruption, act 46, we gained information of 50 bank accounts in Panama. And this only cost 2000 dollars, for travel expenses two times to Panama and back. Now, that’s a big difference!!.

How was it is possible?....because we could meet and talked directly with the Panama’s authority in charge with the investigations, without filling out previous forms or letter rogatory, the cooperation made it possible to seized those accounts.

To summarize, it’s very important that APEC countries work together resolving the issues in our countries to diminish corruption

“BROTHER THERE IS A LOT TO DO”, is a famous saying in my country written by the Peruvian poet Cesar Vallejo, 90 years ago, and still echo’s today.

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