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(Adopted at the March 11, 2021 Plenary Session) I

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(Adopted at the March 11, 2021 Plenary Session) I MECHANISM FOR FOLLOW-UP ON THE OEA/Ser.L. IMPLEMENTATION OF THE INTER-AMERICAN SG/MESICIC/doc.579/20 Rev. 4 CONVENTION AGAINST CORRUPTION March 11, 2021 Thirty-Fifth Meeting of the Committee of Experts Original: Spanish March 8 – 11, 2021 Washington, D.C. REPUBLIC OF PERU FINAL REPORT (Adopted at the March 11, 2021 plenary session) i SUMMARY This Report contains a comprehensive review of the implementation in the Republic of Peru of Article XVI of the Inter-American Convention against Corruption, on bank secrecy, which was selected by the Committee of Experts of the MESICIC for the Sixth Round; and follow-up on implementation of the recommendations formulated to the Republic of Peru in the Third Round, which refer respectively to: Denial or Prevention of Favorable Tax Treatment for Expenditures Made in Violation of the Anticorruption Laws (Article III (7) of the Convention); Prevention of Bribery of Domestic and Foreign Government Officials (Article III (10) of the Convention); Transnational Bribery (Article VIII of the Convention); Illicit Enrichment Article IX of the Convention); Notification of the defining of transnational bribery and illicit enrichment as crimes (Article X of the Convention); and Extradition (Article XIII of the Convention). The review was conducted in accordance with the Convention, the Report of Buenos Aires, the Committee’s Rules of Procedure, and the methodologies adopted for conducting on-site visits and for the Sixth Round, including the criteria set out therein for guiding the review based on equal treatment for all states parties, functional equivalence, and the common purpose of both the Convention and the MESICIC of promoting, facilitating, and strengthening cooperation among the states parties in the prevention, detection, punishment, and eradication of corruption. The review was carried out mainly taking into account the Republic of Peru’s Response to the Questionnaire and information gathered during the virtual on-site visit conducted between September 14 to 18, 2020, by representatives of Argentina and Colombia, with the support of the Technical Secretariat. During that visit, the information furnished by Peru was clarified and supplemented with the opinions of civil society organizations. With regard to the implementation of the recommendations that were formulated to the Republic of Peru in the Report from the Third Round, based on the methodology for the Sixth Round and bearing in mind the information provided in the Response to the Questionnaire and during the on-site visit, the Committee made a determination as to which of those recommendations had been satisfactorily implemented, which required additional attention, which should be reformulated, and which were no longer valid. Some of the recommendations formulated in the Third Round that remain valid or have been reformulated regarding the Denial or Prevention of Favorable Tax Treatment for Expenditures Made in Violation of the Anticorruption Laws seek, for instance, to: facilitate access to the sources of information needed to verify and confirm the requests presented; to create or improve I.T. programs that make it easier to consult or cross-check information; and to strengthen institutional coordination mechanisms that enable them to obtain necessary collaboration from other authorities in a timely manner. In addition, regarding new developments in Peru with respect to the implementation of the provisions of the Convention selected for the Third Round, the Committee made recommendations regarding such matters as: the introduction of I.T. programs allowing access to information needed to verify the information provided or to ascertain the origin of the expenditure or payment on which applications are founded; and the compiling of statistics regarding actions taken to prevent, investigate, and punish conduct geared to obtaining tax benefits for payments made in violation of anticorruption laws. ii Some of the recommendations formulated in the Third Round that remain valid or have been reformulated regarding the Prevention of Bribery of Domestic and Foreign Government Officials include drafting and using guidelines or manuals for conducting internal audits designed to detect anomalies or corrupt acts; establishing the duty for individuals and accountants responsible for the entry of accounting records and for internal auditors when they detect anomalies to bring them to the attention of the legal representative and the partners (in the case of companies) or members (in the case of associations), and to report them to the appropriate authorities in the event that they could constitute an offense; and adopting, in accordance with the country’s legal system, measures to ensure that “professional secrecy” is not an obstacle for certified public accountants and auditors to bring to the attention of the appropriate authorities any acts of corruption that they discover in the course of their work. Based on its review of new developments in Peru with respect to implementation of the provisions of the Convention selected for the Third Round, the Committee also made, inter alia, the following recommendations: adopting measures to ensure that the branches established in Peru of commercial companies domiciled abroad are required to keep proper accounting records and sufficient internal accounting controls to enable personnel to detect corrupt acts; and compiling and publishing, every year, in a clear, user-friendly format, detailed statistical information on the actions it has undertaken to prevent, investigate, and punish noncompliance, with a view to identifying challenges and adopting corrective measures. Some of the recommendations formulated in the Third Round that remain valid or have been reformulated regarding the prevention of transnational bribery include: clarifying, in its criminal laws, the concept of government official or public servant of another State; and compiling and disseminating, using modern, user-friendly, easy-to-understand, and readily accessible electronic media, disaggregated annual statistics on the number of (granted and denied) mutual assistance requests made to other States Parties relating to the investigation or prosecution of transnational bribery. Based on its review of new developments in Peru with respect to implementation of the provisions of the Convention selected for the Third Round, the Committee also made, inter alia, the following recommendations: establishing and enforcing procedural norms that take into account the particular nature of legal persons and regulate criminal procedure when it is a matter of charging them with responsibility for conduct covered by the definitions of transnational bribery (the offering or receiving of bribes); and developing and applying criteria for clearly distinguishing between the criminal liability pertaining to the legal person and that of the persons it comprises, in order to prevent it from becoming a source of impunity for the individuals whose conduct constitutes the offense of transnational offering of a bribe. Some of the recommendations formulated in the Third Round that remain valid or have been reformulated regarding illicit enrichment include: amending Article 401 of the Criminal Code on illicit enrichment, in line with Peru’s Constitution and the fundamental principles of its legal system, by removing word “illicitly” in the definition of the offense; and compiling and disseminating, in a user- friendly, readily accessible, and easy-to-understand format, disaggregated annual statistics on investigations opened into illicit enrichment, in order to identify challenges and adopt corrective measures. Based on its review of new developments in Peru with respect to implementation of the provisions of the Convention selected for the Third Round, the Committee also made, inter alia, the following iii recommendations: adopting, subject to its Constitution and the fundamental principles of its legal system, a definition of “de facto public servant”‘ and adopting a binding provision extending the illicit enrichment period beyond the time when the government official/public servant has left office or formally takes up public office after being formally appointed. Some of the recommendations formulated in the Third Round that remain valid or have been reformulated regarding extradition include: designing and applying a protocol with the participation of the Office of the Public Prosecutor, the Judiciary, and the Ministry of Foreign Affairs, for keeping track of the judicial proceedings for extradition and ascertaining their final outcome, so that the final decision can be reported in good time to the Requesting State; developing and broadly disseminating, in user-friendly and easy-to- understand formats, procedures and indicators for obtaining statistical information regarding the use made of the Convention as the legal basis for requests for extradition; and disseminating and promoting, especially among judicial and administrative authorities with competence in this field, use of the Convention, highlighting the advantages of applying it to extradition cases. Based on its review of new developments in Peru with respect to implementation of the provisions of the Convention selected for the Third Round, the Committee also made, inter alia, the following recommendations: moving ahead with the project to improve the SUCJIE being fostered by the International Judicial Cooperation and Extraditions Unit, which will yield statistics on the use made of international
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