Lima, 27 January 2016

S.B.S. Resolution No. 395-2016

The Superintendent of Banking, Insurance and Private Pension Fund Administrators

WHEREAS:

That, the Charter of the United Nations, approved and ratified by the Peruvian State on 10 and 31 October 1945, respectively, in its article 25, provides that the Members of the United Nations agree to accept and carry out the decisions of the Security Council. Likewise, Chapter VII of the same Charter grants powers to its Security Council to adopt decisions in order to maintain or restore international peace and security when said body determines the existence of a threat to the peace or an act of aggression, as well as the power to impose measures and sanctions that must be applied by the Member States;

That, in accordance with article 55 of the Political Constitution of Peru, the Charter of the United Nations forms part of national law, from its entry into force; therefore, the Peruvian State is obliged to accept and comply with the decisions adopted by the United Nations Security Council, within the framework of Chapter VII of the aforementioned Charter;

That, the Peruvian State is part of the Financial Action Task Force of Latin America –GAFILAT and as part of this regional body is subject to the implementation of international standards on the prevention of money laundering and terrorist financing established by the Financial Action Task Force – FATF;

That, in accordance with FATF Recommendation 6 countries must implement financial sanctions regimes to comply with the United Nations Security Council Resolutions relating to the prevention and suppression of terrorism and terrorist financing, requiring countries to freeze without delay the funds or other assets, and to ensure that no funds or other assets are made available, directly or indirectly, to or for the benefit of any person or entity, whether (i) designated by, or under the authority of, the United Nations Security Council within Chapter VII of the Charter of the United Nations, in accordance with Resolution 1267 (1999) and its successor resolutions; or (ii) designated by the country pursuant to Resolution 1373 (2001);

That, the designations of persons or entities relating to Al-Qaida, as well as to the Taliban and threats related to Afghanistan, are made by Committees 1267 and 1988 respectively, in accordance with Resolution 1267 (1999) and its successor resolutions; while designations under Resolution 1373 (2001) are made by a country on its own initiative or at the request of another country, provided that the designation request is duly substantiated and complies with the United Nations designation criteria established by said resolution;

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That, Supreme Decree No. 016-2007-RE provides for the mandatory publication by the Ministry of Foreign Affairs of the aforementioned United Nations Security Council resolutions, as well as of the lists of entities or persons that have been identified by the aforementioned Security Council or its subsidiary organs as subject to the sanctions regime;

That, additionally, the aforementioned Supreme Decree states that the Executive Branch, the Constitutionally Autonomous Bodies, the Regional Governments and the Local Governments shall adopt, within the framework of their competences, the necessary measures in order to comply with the United Nations Security Council resolutions;

That, in accordance with Laws No. 27693 and No. 29038 and their amending norms, the Financial Intelligence Unit of Peru (UIF-Peru) is responsible for receiving, analyzing, processing, evaluating and transmitting information for the detection of money laundering and terrorist financing, for which purpose the list of subjects obliged to report to UIF-Peru on operations that are suspicious was established;

That, in accordance with the provisions of article 3 of Law No. 27693, amended by the first complementary amending provision of Legislative Decree No. 1106, Legislative Decree on Effective Fight against Money Laundering and other Crimes Related to Illegal Mining and Organized Crime, the SBS -through UIF-Peru- has the power to order exceptionally, given the urgency of the circumstances or the danger in the delay and provided that it is necessary due to the dimension and nature of the investigation, the freezing of funds in cases linked to the crime of money laundering and terrorist financing, it being appropriate to report to the Judge within twenty-four (24) hours of the measure being ordered, who within the same term may validate the measure or order its immediate revocation;

That, in this context, it is necessary to approve the norm that regulates the mechanisms and procedures so that UIF-Peru, in the use of the powers granted, administratively freezes the funds or other assets of persons or entities linked to terrorist financing, identified within the framework of Resolution 1267 (1999) and its successor resolutions and Resolution 1373 (2001);

With the approval of the Deputy Superintendencies of the Financial Intelligence Unit of Peru and of Legal Advice; and, in accordance with the exceptional conditions set forth in numeral 3.2 of article 14 of the Regulation that establishes provisions relating to the Publicity, Publication of Regulatory Projects and Dissemination of Legal Norms of a General Nature, approved by Supreme Decree No. 001-2009-JUS and its amending norms;

In use of the powers conferred by Law No. 26702, Law No. 27693, as well as Law No. 29038 and its amending norms;

RESOLVES:

Article 1.- Approve the Regulation that regulates the mechanisms and procedures for the UIF-Peru to administratively freeze the funds or other assets of persons or entities linked to the financing of terrorism, identified within the framework of Resolution 1267 (1999) and the resolutions succeeding it and Resolution 1373 (2001) of the United Nations Security Council, which is transcribed below:

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REGULATION THAT REGULATES THE MECHANISMS AND PROCEDURES FOR THE UIF-PERU TO ADMINISTRATIVELY FREEZE THE FUNDS OR OTHER ASSETS OF PERSONS OR ENTITIES LINKED TO THE FINANCING OF TERRORISM, IDENTIFIED WITHIN THE FRAMEWORK OF RESOLUTION 1267 (1999) AND THE RESOLUTIONS SUCCEEDING IT AND RESOLUTION 1373 (2001)

CHAPTER I GENERAL PROVISIONS

Article 1.-Scope

This regulation is applicable and mandatory for all obligated subjects included in article 3 of Law No. 29038, Law that incorporates the Financial Intelligence Unit of Peru into the Superintendency of Banking, Insurance and Private Pension Fund Administrators.

Article 2.-Definitions and abbreviations

a) Freezing: administrative measure of a preventive nature issued by the UIF-Peru, which prohibits the transfer, conversion, disposal or movement of funds or other assets that are owned or controlled, in whole or jointly, directly or indirectly, by the designated persons or entities; as well as funds or other assets derived or generated from funds or other assets that belong to or are controlled by the designated persons or entities, and the funds or other assets of persons or entities acting on their behalf or under the direction of the designated persons or entities until revoked by decision of the Judicial Power in cases linked to the financing of terrorism. The administrative freezing measure does not generate the loss of the property right over the affected funds or other assets.

b) UNSC: United Nations Security Council.

c) Financing of terrorism: crime typified in article 4-A of Decree Law No. 25475 and its amending norms.

d) Funds or other assets: any asset, including but not limited to, financial assets, economic resources, goods of all types, tangible or intangible, movable and immovable, however acquired, and legal documents or instruments evidencing ownership or participation in such funds or other assets. Funds include, without the enumeration being exhaustive, cash, securities and financial instruments, funds in savings accounts and checking accounts, deposits, drafts, transfers of national and/or foreign funds, jewels and precious metals, among others, in custody, safe deposit boxes and their contents, contributions without pension purpose, contributions or deposits in savings and credit cooperatives, credit rights; investment insurance, participation quotas in mutual funds and/or investment funds, participation certificates in collective funds, physical or dematerialized securities by book-entry, including, without limitation, traveler's checks, bank checks, payment orders, shares, securities, bonds, bills of exchange, rights over letters of credit, interest, dividends or any other type of income generated by such funds or other assets.

e) Designated persons or entities: natural and legal persons designated by the 1267 and 1988 Committees of the UNSC, by virtue of Resolution 1267 (1999) and the resolutions succeeding it, that modify it or any other resolution that replaces it, as well as natural and legal persons designated by the country by virtue of Resolution 1373 (2001).

f) SBS: Superintendency of Banking, Insurance and Private Pension Fund Administrators.

g) Obligated subjects: natural or legal persons provided for in article 3 of Law No. 29038, Law that incorporates the UIF-Peru into the SBS, who are obligated to report suspicious operations to the UIF-Peru, as well as those on whom the obligation falls to execute the measure of freezing ordered by the UIF-Peru. h) UIF-Peru: Financial Intelligence Unit of Peru, specialized unit of the SBS.

CHAPTER II PROCEDURE FOR THE ADMINISTRATIVE FREEZING OF FUNDS OR OTHER ASSETS OF DESIGNATED PERSONS OR ENTITIES LINKED TO THE FINANCING OF TERRORISM, IN ACCORDANCE WITH RESOLUTION 1267 (1999) OF THE UNITED NATIONS SECURITY COUNCIL AND THE RESOLUTIONS SUCCEEDING IT

Article 3.- Communication of detected operations involving the designated persons or entities

The SBS, without prejudice to the publication and updating by the Ministry of Foreign Affairs referred to in Supreme Decree No. 016-2007-RE, publishes and updates without delay the lists of persons or entities designated by the UNSC, in accordance with Resolution 1267 (1999) and the resolutions succeeding it, through its website (www.sbs.gob.pe/UIF/).

Obligated subjects must permanently review the publication of the lists made by the SBS on its website and compare it with their records of operations and database of their clients, users and suppliers, if applicable, in order to identify any type of funds or other assets or any operation involving the persons or entities designated by the UNSC, in which case they must communicate it without delay to the UIF-Peru.

The sending of such communications by the obligated subjects is done through the means established by the SBS.

Article 4.- Administrative freezing of funds or other assets, ordered by the UIF-Peru

Once the UIF-Perú has received the communication from the obligated subjects, it shall, without delay, order the administrative freezing of the funds or other assets detected of the designated persons or entities; and it shall communicate the decision to the obligated subjects by official letter, ordering them to proceed to execute the ordered freezing, without prejudice to it initiating the corresponding financial analysis and investigation. Said official letter is sent to the email address registered with the UIF-Perú by the obligated subject and by physical means.

Article 5.- Execution of the administrative freezing of funds or other assets by the obligated subjects

The obligated subjects must proceed without delay to the administrative freezing of the funds or other assets once the official letter from the UIF-Perú is received; and, in the same manner, they must communicate by email and by physical means to the UIF-Perú the execution of the ordered freezing. This measure is maintained until its validation or revocation by the judicial authority.

Article 6.- Judicial validation or revocation of the administrative freezing of funds or other assets

The UIF-Perú, within a period of twenty-four (24) hours of the administrative measure of freezing of funds or other assets being ordered, shall report to the judge, who within the same term may validate or revoke said measure. Likewise, the UIF-Perú communicates the adopted measure to the Ministry

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Público and to the Public Attorney's Office Specialized in Terrorism Crimes, in order that they act within the framework of their competences.

Article 7.- Proposal for inclusion and exclusion of listed persons

The UIF-Perú requests monthly from the National Police of Peru, the Ministry of the Interior, the Ministry of Justice and Human Rights, the Public Ministry and the Judiciary, information they manage within the scope of their competence, on persons or entities allegedly linked to terrorism, collaboration with terrorism and the financing of terrorism.

Once the information is received, the UIF-Perú proceeds to its analysis, and if there are reasons or reasonable bases to determine that a person or entity meets the designation criteria stipulated by Resolution 1267 (1999) and the resolutions that succeed it, it communicates it without delay to the Ministry of Foreign Affairs, so that it acts within the framework of its competences before the UNSC.

Any person or entity, national or resident in the country, included in the lists or the family members, nationals or residents in the country, of the deceased who are included in the lists, may request their exclusion before the Office of the Ombudsperson of the UNSC and, if presented before the UIF-Perú, the latter transfers the request to the Ministry of Foreign Affairs, so that it acts within the framework of its competences before the UNSC.

The UIF-Perú, once it becomes aware of the removal by the UNSC of a person or entity included in its lists, proceeds without delay to communicate said information to the Court that validated the freezing measure, requesting that said decision be revoked; and to the Public Ministry, so that it acts within the framework of its competences.

CHAPTER III PROCEDURE FOR THE ADMINISTRATIVE FREEZING OF FUNDS OR OTHER ASSETS OF PERSONS OR ENTITIES, IN ACCORDANCE WITH RESOLUTION 1373 (2001) OF THE UNITED NATIONS SECURITY COUNCIL

Article 8.- Freezing of funds or other assets of persons or entities linked to terrorism, collaboration with terrorism and the financing of terrorism

In accordance with numeral 11 of article 3 of Law No. 27693, the UIF-Perú requests monthly from the National Police of Peru, the Ministry of the Interior, the Public Ministry and the Judiciary, information they manage within the scope of their competence, related to persons or entities allegedly linked to terrorism, collaboration with terrorism and the financing of terrorism to analyze it and, if applicable, orders without delay the administrative freezing of funds or other assets, as long as any of the following assumptions is met:

1. That they are under fiscal investigation or criminal proceedings in progress, in the country or abroad, as author, participant, facilitator of alleged crimes of terrorism, collaboration with terrorism or financing of terrorism.

2. That they have been the subject of a judicial resolution issued in the country or abroad, which individualizes them as author, participant of, or facilitator of the crimes of terrorism, collaboration with terrorism or financing of terrorism.

Article 9.- Communication to the subjects and procedure for the administrative freezing of funds or other assets

The UIF-Perú, once the administrative freezing of funds or other assets has been ordered, communicates it by official letter to the obligated subjects, ordering that they proceed without delay to execute it.

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Said official letter is sent to the email address registered with the UIF-Perú by the obligated subject and by physical means.

After receiving the communication, the obligated subjects must without delay review the records of operations and database of their clients, users and suppliers, if applicable, in order to identify any type of funds or other assets or any operation that involves the persons or entities on which the administrative freezing was ordered.

Article 10.- Execution of the administrative freezing of funds or other assets and judicial validation or revocation

The obligated subjects, once the review referred to in the previous article is completed, and if they detect funds or other assets of the persons or entities on which the administrative freezing was ordered, must execute it without delay, in accordance with the provisions of article 5 of this regulation. The UIF-Perú, for its part, acts in accordance with the provisions of article 6 of this regulation.

If the obligated subjects do not detect funds or other assets of the persons or entities with respect to which the administrative freezing was ordered, they must communicate the negative result to the UIF-Perú without delay, declaring that the ordered administrative freezing cannot be executed.

Article 11.- Cessation of the administrative freezing of funds or other assets

The UIF-Perú, once it has received information from the competent authorities regarding the cessation of any of the cases provided for in article 8 of this regulation, goes before the judge who validated the measure of administrative freezing of funds or other assets, requesting that said measure be rendered ineffective.

Once the freezing measure is rendered ineffective, the UIF-Perú proceeds to inform the obligated subject without delay so that it immediately proceeds with the cessation of the freezing.

SUBCHAPTER I MECHANISMS FOR COOPERATING WITH OTHER COUNTRIES REGARDING THE ADMINISTRATIVE FREEZING OF FUNDS OR OTHER ASSETS OF PERSONS OR ENTITIES DESIGNATED BY ANOTHER COUNTRY PURSUANT TO RESOLUTION 1373 (2001)

Article 12.- Administrative freezing of funds or other assets of persons or entities designated by another country pursuant to Resolution 1373 (2001)

The UIF-Perú receives duly substantiated requests for the administrative freezing of funds or other assets of persons or entities designated by other countries pursuant to Resolution 1373 (2001) of the UNSC. These requests must contain as much information as possible to fully identify the persons or entities, such as names and surnames, corporate name where applicable, nationality and address, as well as the basis for the requested measure; and must be accompanied by the respective documentation.

The UIF-Perú, after evaluating the basis sent by the requesting country, orders the administrative freezing of funds or other assets without delay and acts in accordance with the provisions of articles 6 and 9 of this regulation, with the obligated subjects being required to act in accordance with articles 9 and 10 of this regulation.

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Article 13.- Cessation of the administrative freezing of funds or other assets

The UIF-Perú receives duly substantiated requests for cessation of the administrative freezing from the requesting country and goes before the judge who validated the measure of administrative freezing of funds or other assets, requesting that said measure be rendered ineffective.

CHAPTER IV ACCESS TO FUNDS

Article 14.- The person or entity whose funds or other assets have been frozen has the right to request access to them before the competent instances, in order to cover basic or extraordinary expenses.

CHAPTER V SANCTIONS

Article 15.- Non-compliance by the obligated subjects with the obligations provided for in this regulation constitutes serious infractions, punishable in accordance with the Regulations on Infractions and Sanctions, approved by the SBS, in coordination with the respective supervisory bodies, as applicable.

FINAL PROVISION

Sole.- The freezing measure is based on the objective verification as to whether the affected person or entity was designated by the UNSC in the corresponding lists, in accordance with Chapter VII of the Charter of the United Nations and the UNSC Resolutions.

Article 2.- Incorporate the following serious infractions into Annex 1 referring to Common Infractions of the Regulations on Sanctions, approved by SBS Resolution No. 816-2005 and its amending norms:

• Fail to comply with the obligation to permanently review the publication of the lists made by the SBS on its website, of the persons or entities designated by the UNSC in accordance with Resolution 1267 (1999) and the resolutions succeeding it, and fail to compare these with their records of operations and databases of their clients, users and suppliers, where applicable, in order to identify any type of funds or other assets or any operation involving the persons or entities designated by the UNSC.

• Fail to comply with the obligation to communicate without delay to the UIF-Perú the funds or other assets detected of the persons or entities designated by the UNSC.

• Fail to comply with the obligation to review without delay the records of operations and databases of their clients, users and suppliers, where applicable, in order to identify any type of funds or other assets or any operation involving the persons or entities with respect to which the UIF-Perú orders administrative freezing.

• Fail to comply with the obligation to communicate without delay to the UIF-Perú the non-existence of funds or other assets of the persons or entities with respect to which the UIF-Perú orders administrative freezing.

• Fail to comply with the obligation to execute without delay the measure of administrative freezing of funds or other assets ordered by the UIF-Perú.

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Article 3.- Incorporate the following serious infractions into Annex 1 of the Regulations on Infractions and Sanctions in Matters of Prevention of Money Laundering and Financing of Terrorism, applicable to obligated subjects that do not have a supervisory body, approved by the Second Article of SBS Resolution No. 8930-2012 and its amending norms:

In relation to compliance with the Resolutions of the United Nations Security Council (UNSC)

• Fail to comply with the obligation to permanently review the publication of the lists made by the SBS on its website, of the persons or entities designated by the UNSC in accordance with Resolution 1267 (1999) and the resolutions succeeding it, and fail to compare these with its transaction records and databases of its clients, users and suppliers, as the case may be, in order to identify any type of funds or other assets or any transaction involving the persons or entities designated by the UNSC.

• Fail to comply with the obligation to communicate without delay to the UIF-Perú the funds or other assets detected of the persons or entities designated by the UNSC.

• Fail to comply with the obligation to review without delay the transaction records and databases of its clients, users and suppliers, as the case may be, in order to identify any type of funds or other assets or any transaction involving the persons or entities over which the UIF-Perú orders the administrative freezing.

• Fail to comply with the obligation to communicate without delay to the UIF-Perú the non-existence of funds or other assets of the persons or entities over which the UIF-Perú orders the administrative freezing.

• Fail to comply with the obligation to execute without delay the administrative freezing measure of funds or other assets ordered by the UIF-Perú.

Article 4.- Notification to the supervisory bodies

If in the exercise of its functions the UIF-Perú detects non-compliance with the obligations set forth in the norm approving Article 1 of this resolution, it shall communicate without delay to the supervisory bodies, so that they proceed in accordance with their competence, when applicable.

Article 5.- This Resolution enters into force on the day following its publication in the Official Gazette El Peruano, from which date Resolution SBS No. 12565-2009 approving the Guidelines for the dissemination of the Resolutions of the United Nations Security Council relating to the prevention and suppression of the financing of terrorism is repealed.

Register, communicate and publish.