Lima, 03 July 2013

S.B.S. Resolution No. 4034-2013

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators (a.i.)

WHEREAS:

That, within the framework of the provisions of article 3 of Law No. 27693, as 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 Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS), through the Financial Intelligence Unit of Peru (UIF-Peru), has the function and power to regulate -in coordination with the supervisory bodies of the obligated subjects- the general and specific guidelines, requirements, clarifications, sanctions and other aspects related to the prevention systems of the obligated subjects to report, in accordance with the scope of the provisions of the aforementioned Law and its Regulation;

That, article 9-A of Law No. 27693, incorporated by the fifth complementary amending provision of the aforementioned Legislative Decree No. 1106, establishes that notaries are under the supervision of the SBS, through the UIF-Peru, in matters of prevention of money laundering and terrorist financing; and by virtue thereof, through SBS Resolution No. 5709-2012, the “Special Rules for the Prevention of Money Laundering and Terrorist Financing applicable to Notaries” were approved;

That, it is necessary to adapt the aforementioned special rules to the new Forty Recommendations of the Financial Action Task Force - FATF, which establish international standards and promote the effective implementation of legal, regulatory and operational measures for the fight against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction;

That, likewise, it is necessary to amend certain articles of the special rules, in order to specify their application, reduce the thresholds for the registry of operations considering the risks to which the notarial sector is exposed and extend the deadline for their submission and, additionally, include the possibility of creating a centralized body for the prevention of money laundering and terrorist financing, in order to assist notaries in complying with their obligations within the current regulatory framework;

That, on the other hand, it is necessary to consolidate the annexes containing the formats of sworn statements of personal, employment and patrimonial background, to facilitate their submission;

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With the approval of the Financial Intelligence Unit of Peru and the Deputy Superintendency of Legal Advisory, and having complied with the dissemination period of the draft legal norms of a general nature referred to in article 14 of the Regulation that establishes provisions related to publicity, publication of regulatory drafts and dissemination of legal norms of a general nature, approved by Supreme Decree No. 001-2009-JUS;

In use of the powers conferred by Law No. 29038 and Law No. 26702, in accordance with Law No. 27693 and its amending norms;

RESOLVES:

Article One.- Amend literal o) of article 3, subparagraphs 8.2.1 and 8.6 of article 8, article 9, numerals 10.2.1 and 10.2.2 of subparagraph 10.2 and subparagraph 10.5 of article 10, article 11, subparagraph 14.1 of article 14, article 18 and article 22 of the Special Rules for the Prevention of Money Laundering and Terrorist Financing applicable to Notaries, approved by SBS Resolution No. 5709-2012, which are redrafted as follows:

“Article 3.- Definitions and abbreviations

(…)

o) Politically exposed persons (PEP): those natural persons, national or foreign, who in the last two (2) years perform or have performed prominent public functions or prominent functions in an international organization, whether in the national or foreign territory, and whose financial circumstances may be subject to public interest.”

“Article 8.- Customer knowledge, due diligence and market knowledge

(…)

8.2.1 In the case of natural persons:

(…)

i) Position, public function or prominent function performed or that has been performed in the last two (2) years, in Peru or abroad, indicating the name of the public body or international organization. In these cases, additionally, the name of their relatives up to the second degree of consanguinity, second of affinity and of the spouse or concubine will be required.

(…)

l) Names and surnames of the natural person represented, if applicable.

(…)

“8.6 The notary will apply a simplified due diligence regime in the customer knowledge procedure, when one of the parties in the act or contract acts on its own account and is a company of the financial system supervised by the SBS or a company supervised by the Superintendency of the Securities Market; in which case the form referred to in Annex No. 5 must be filled out only once for operations carried out in a calendar year. The minimum information required will be the following:

a) Name or corporate name.

b) Single Taxpayer Registry (RUC), if applicable.

c) Address, and if applicable, telephone.

d) Names and surnames and type and number of the identity document of the natural person representing the legal person.

e) The origin of the funds, goods or other assets involved in said transaction. When the notary's client is a company of the financial system supervised by the SBS or a company supervised by the Superintendency of the Securities Market and the operation is of

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release of a mortgage, movable security or other encumbrance constituted in its favor, having been cancelled by a third party who is not a client of said company, through any means of payment other than cash, must record said circumstance.”

“Article 9.- Knowledge of the worker

Knowledge of the worker implies that the notary must ensure that its workers have a high level of integrity.

The personal file of each worker that the notary must keep shall contain, at least, the following information:

1. Copy of the national identity document or, as the case may be, of the document legally established for the identification of foreigners.

2. Sworn statement of personal, employment and asset background.

3. Sworn statement of having become aware of and complying with the manual and code of conduct for the prevention of LA/FT.

4. Copy of the records or certificates that accredit the training referred to in article 6 of these special rules.

5. Sanctions for non-compliance with the internal rules for the prevention of LA/FT, imposed by the obligated subject, if applicable.

6. Others determined by the obligated subject or the SBS.

The file of each worker must be kept up to date and shall be available to the SBS, through the UIF-Perú, at the time it requests it, as well as during the supervision visits of the LA/FT prevention system.

It is the obligation of each worker to communicate to the notary, in writing –as a sworn statement–, any change regarding the information provided, within a maximum period that shall not exceed fifteen (15) days from the occurrence of the change for the updating of the worker's personal file.”

“Article 10.- Registry of operations (RO)

(…)

10.2 Of the thresholds subject to the RO

10.2.1 The Notary must keep and maintain updated a registry of the operations carried out by its clients, as indicated below:

TYPE OF OPERATION	INDIVIDUAL OPERATION	MULTIPLE OPERATIONS IN ONE MONTH
	Amount equal to or greater than US$ or its equivalent in national currency or other currencies, as the case may be	Amount equal to or greater than US$ or its equivalent in national currency or other currencies, as the case may be
1	Transfer or other act of disposal of real property for consideration or free of charge and/or mortgage security.	2,500.00	Not applicable
2	Transfer or other act of disposal of movable property for consideration or free of charge and/or security	2,500.00	10,000.00

movable.
3
Lease, usufruct, assignment for use, surface right and/or other act of Use and/or Enjoyment 2,500.00 10,000.00 4 In the case of incorporation of legal persons and/or corporate acts involving asset or economic movement, including capital increases, transfers for consideration or free of charge of shares, social participations or trademark(s), the Notary must register all operations.

10.2.2 Multiple operations are those individual operations that together equal or exceed US$ 10,000.00 (Ten thousand and 00/100 US dollars), or its equivalent in national currency or other currencies, as the case may be, when carried out by or for the benefit of the same person during one calendar month, in which case they shall be considered as a single operation.

(…)

10.5 With respect to the natural and legal persons that intervene in the operation, the identification of the person carrying out the operation (representative) must be recorded, as well as that of the person in whose name the operation is carried out (principal/owner) and of the person in whose favor the operation is carried out (beneficiary or acquirer). Likewise, as the case may be, the identification of the guarantor, surety, trustee or other person intervening in the operation, related to the person in whose name the operation is carried out, must be recorded.”

“Article 11.- Conservation and availability of the RO

11.1 The notary must record the operations in the RO on the day they have occurred. The RO shall be kept in chronological, precise and complete form.

11.2 The RO shall be conserved for ten (10) years, counted from the date on which the notarial public instrument was executed, using for such purpose computer, microfilming or similar means that are easily retrievable; there must be a backup copy that shall be available to the UIF-Perú and the Public Ministry within the periods established in the Law, and it has a confidential character, in accordance with article 12 of the Law and its amending rules.

11.3 The notary shall send the RO to the SBS, within thirty (30) calendar days following the close of each month, in the electronic medium and form that it establishes. Non-compliance with this obligation shall be communicated to the College of Notaries of the jurisdiction and to the Council of the Notariat.”

“Article 14.- Manual for the prevention of money laundering and terrorist financing

14.1 The notary, through its compliance officer, must approve and execute a manual for the prevention of LA/FT that shall contain the policies, mechanisms and procedures for the prevention and detection of LA/FT, as provided by the Law, its Regulation, these special rules and other provisions issued on the matter. The notary may take as reference Annex No. 3 “Model Manual for the Prevention of Money Laundering and Terrorist Financing”, in which the minimum information it must contain is set forth. Non-compliance with this obligation shall generate administrative liability.”

“Article 18.- Requirements of the compliance officer

18.1 The compliance officer must meet, at least, the following requirements:

a) Have a minimum work experience of one (1) year in activities inherent to the notarial function and/or in prevention of LA/FT, or else have knowledge of them, by reason of their professional practice, for an equal period, or experience for an equal period as an officer of

compliance or as a worker in the area under the charge of a compliance officer in another sector.

b) Not having been convicted for the commission of an intentional crime.

c) Not having been removed from public office or having been dismissed from it for serious misconduct.

d) Not having overdue debts for more than one hundred twenty (120) days in the financial system or in judicial collection, nor protest of documents in the last five (5) years, not clarified to the satisfaction of the SBS.

e) Not having been declared bankrupt.

f) Others established by the SBS.

The aforementioned requirements may be accredited with sworn statements.

18.2 On the communication of the designation of the compliance officer

The designation of the compliance officer must be communicated by the notary, by means of a letter addressed to the Deputy Superintendent of the UIF-Peru or another means determined by the SBS, in a confidential and reserved manner, within a period no greater than five (5) business days from the date of designation, attaching the documentation that accredits compliance with the requirements indicated in the preceding numeral and indicating at least the following information of the compliance officer:

a) Names and surnames.

b) Type and number of identity document.

c) Nationality.

d) Address of the notarial office.

e) Contact data [telephones, fax, email, others].

f) Indicate whether they will serve on an exclusive dedication basis or not.

g) Date of entry and position held. In the event that the notary is the compliance officer, they must indicate the date and number of the ministerial resolution of appointment as such and the date of commencement of the notarial function.

h) Number of workers that the notary has.

Changes in the referred information must be communicated by the notary to the UIF-Peru, within a period no greater than five (5) business days from the occurrence of the change.

18.3 The person designated as compliance officer may only be so for one obligated subject at a time.

18.4 The UIF-Peru will assign secret codes, both to the obligated subject and to the compliance officer, after verifying the documentation and information referred to in this article.

18.5 The requirements to be designated as compliance officer, established in numeral 18.1 of this article, must remain in force during the exercise of the position. If the compliance officer ceases to comply with any of said requirements, they must communicate it to the notary, in writing -with the character of a sworn statement- within a maximum period of five (5) business days from the occurrence of the fact. In this case, the notary must designate a new compliance officer who meets the aforementioned requirements, within a maximum period of five (5) business days counted from the communication of the compliance officer and proceed to communicate said designation to the UIF-Peru, in accordance with the provisions of numeral 18.2 of this article.

18.6 The removal of the compliance officer requires to be duly justified. The removal, as well as the reasons that support such measure must be communicated by the notary by means of a letter addressed to the Deputy Superintendent of the UIF-Peru or another means determined by the SBS, within the period of five (5) business days from the adoption of the decision.

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18.7 The vacancy situation of the compliance officer, due to removal or resignation, may not last more than thirty (30) calendar days, from the date of its occurrence.

18.8 In case of temporary absence of the compliance officer, the notary by means of a letter addressed to the Deputy Superintendent of the UIF-Peru, or another means determined by the SBS, within the period of five (5) business days from the occurrence of the temporary absence, will communicate the name of the worker who will replace them, attaching the supporting documentation referred to in this article and supporting the reasons that justify the measure. The notary may replace the compliance officer even if they have more than 20 workers, with a letter signed by the notary being sufficient for this purpose. The temporary absence may not last more than four (4) months.”

“Article 22.- Annexes

The following annexes form an integral part of these special norms:

Annex No. 1: Alert signals.

Annex No. 2: Registry of operations (RO).

Annex No. 3: Model manual for the prevention of money laundering and terrorist financing.

Annex 3-A: Sworn statement of receipt and knowledge of the manual for the prevention of money laundering and terrorist financing.

Annex 3-B: Sworn statement of personal, employment and asset background.

Annex No. 4: Model code of conduct for the prevention of money laundering and terrorist financing.

Annex 4-A: Sworn statement of receipt and knowledge of the code of conduct for the prevention of money laundering and terrorist financing.

Annex No. 5: Form of sworn statement of knowledge of the client.

Annex No. 6: Design of identification of unusual operations.”

Article Second.- Modify Annexes No. 2, 5 and 6 of the Special Norms for the Prevention of Money Laundering and Terrorist Financing applicable to Notaries, approved by Resolution SBS No. 5709-2012, which will be published on the electronic portal of the Superintendency of Banking, Insurance and Private Administrators of Pension Funds (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Third.- Modify numeral 4.2 of section IV “Prevention mechanisms in relation to the client and their workers”, as well as numerals 6.3 and 6.7 of section VI “Collaborators of the LA/FT prevention system” of Annex No. 3 of the Special Norms for the Prevention of Money Laundering and Terrorist Financing applicable to Notaries, approved by Resolution SBS No. 5709-2012, which are drafted as follows:

“IV. Prevention mechanisms in relation to the client and its workers

(…)

4.2 The obligated subject shall keep a personal file for each worker, with the information that each one provides, in accordance with article 9 of the Special Norms for the Prevention of Money Laundering and the Financing of Terrorism applicable to Notaries, for which it may use formats that contain at a minimum the information of Annexes 3-A, 3-B and 4-A of the aforementioned special norms.”

“VI. Collaborators of the LA/FT prevention system

(…)

6.3 The designation of the compliance officer does not exempt the notary or its workers from the obligation to apply the policies and procedures of the System for the Prevention of Money Laundering and the

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Financing of Terrorism. The requirements to be designated as compliance officer, established in article 18 of the Special Norms for the Prevention of Money Laundering and Financing of Terrorism applicable to Notaries, must remain in force during the exercise of the position. If the compliance officer ceases to comply with any of said requirements, they must communicate it to the notary, in writing –as a sworn statement– within a maximum period of five (5) business days from the occurrence of the fact. In this case, the notary must designate a new compliance officer who meets the aforementioned requirements, within a maximum period of five (5) business days counted from the communication of the compliance officer and proceed to communicate said designation to the UIF-Perú, in accordance with the provisions of the aforementioned norms.

(…)

6.7 The removal of the compliance officer requires being duly justified. The removal, as well as the reasons supporting such measure, shall be communicated by the notary, by means of a letter addressed to the Deputy Superintendent of the UIF-Perú or another means determined by the SBS, within a period of five (5) business days from the adoption of the decision.

The vacancy situation of the compliance officer, due to removal or resignation, may not last more than thirty (30) calendar days, from the date on which it occurs.”

Article Fourth.- Incorporate numeral 6.10 in section VI

“Collaborators of the LA/FT prevention system” of Annex No. 3 of the Special Norms for the Prevention of Money Laundering and the Financing of Terrorism applicable to Notaries, approved by Resolution SBS No. 5709-2012, which is drafted as follows:

“(…) 6.10 The UIF-Perú shall assign secret codes, both to the obligated subject and to the compliance officer, after verifying the documentation and information referred to in this article.

The requirements to be designated as compliance officer, established in the Special Norms for the Prevention of Money Laundering and the Financing of Terrorism applicable to Notaries, must remain in force during the exercise of the position. If the compliance officer ceases to comply with any of the requirements, they must communicate it in writing to the notary, as a sworn statement, in accordance with the period indicated in the aforementioned special norms. In this case, the notary must designate a new compliance officer who meets the requirements, in accordance with the procedure indicated in said special norms.”

Article Fifth.- Incorporate article 9-A to the Special Norms

for the Prevention of Money Laundering and the Financing of Terrorism applicable to Notaries, approved by Resolution SBS No. 5709-2012, which is drafted as follows:

“Article 9-A.- Centralized Organ for the Prevention of LA/FT (OCP LA/FT)

The Colleges of Notaries may integrate their members into a centralized management through a Centralized Organ for the Prevention of LA/FT (OCP LA/FT), which may have in its charge the analysis of the LA/FT risk in the exercise of the notarial function, being able for this to capture in a centralized manner the information contained in notarial public instruments (with the exception of wills), regardless of whether the signature process has concluded or not; the preparation of statistics on the prevention of LA/FT applicable to notaries; the programming, coordination and/or organization of training on the prevention and detection of LA/FT aimed mainly at notaries and their workers; the communication of updates in national legislation; dissemination of national and international lists referred to in this norm, news related to the crimes of LA/FT and related crimes, among others that keep its members and their personnel informed; propose possible alert signals, propose updates to the Manual or Code of Conduct on the prevention of LA/FT or models thereof, among other functions determined by the respective College of Notaries, taking into consideration the provisions of this article.

Notaries shall maintain the obligations of due diligence of the client and of the worker, detection of unusual operations; detection, evaluation and communication to the UIF-Perú of suspicious operations through the ROS; Registry of Operations (RO), among other obligations on the prevention and detection of LA/FT proper to the obligated subject, established in the Law, the Regulation and these special norms.”

Article Sixth.- Substitute Annexes 3-B, 3-C and 3-D of the Special Norms for the Prevention of Money Laundering and the Financing of Terrorism applicable to Notaries, approved by Resolution SBS No. 5709-2012, with Annex 3-B that forms an integral part of this Resolution, which shall be published on the electronic portal of the Superintendency of Banking, Insurance and Private Administrators of Pension Funds (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Seven.- Amend Article Two of SBS Resolution No. 5709-2012, which shall read as follows:

"Article Two.- From the effective date of this regulation until 30 September 2013, the notaries of the Province of Lima and the Constitutional Province of Callao must submit to the UIF-Peru the information recorded in the operations register (RO), only when it so requests. The RO corresponding to the month of October 2013 shall be submitted to the UIF-Peru within thirty (30) calendar days of the month of November 2013, and so on, in accordance with the structure, electronic medium, instructions and other aspects determined by the SBS.

The submission of the RO for the notaries of the other provinces of Peru shall be progressively, in accordance with the structure, electronic medium, instructions and other aspects determined by the SBS. Without prejudice to the foregoing, from the effective date of this regulation, notaries nationwide must keep and preserve the RO in chronological, accurate and complete form, and it shall be submitted to the UIF-Peru when it so requests."

Article Eight.- This resolution shall enter into force on the day following its publication in the Official Gazette El Peruano.

Register, communicate and publish.

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Pension Fund Administrators