Supreme Decree No. 092-2017-PCM Approving the National Policy on Integrity and the Fight against Corruption

4 NORMAS LEGALES Thursday, September 14, 2017 / El Peruano LEGISLATIVE BRANCH CONGRESS OF THE REPUBLIC LAW Nº 30658 THE PRESIDENT OF THE REPUBLIC WHEREAS: THE CONGRESS OF THE REPUBLIC; Has enacted the following Law: LAW THAT DECLARES OF NATIONAL INTEREST THE INTERNATIONAL FAIR OF SPECIALTY COFFEES OF PERU (FICAFÉ) Article 1. Declaration of national interest The International Fair of Specialty Coffees of Peru (FICAFÉ) is declared of national interest. Article 2. Promotional activities The Ministry of Agriculture and Irrigation, the Ministry of Foreign Trade and Tourism, the Ministry of Culture, regional governments, local governments, and private institutions, in a coordinated manner and according to their competencies, promote activities oriented towards the realization of the International Fair of Specialty Coffees of Peru (FICAFÉ). Communicate to the President of the Republic for its promulgation. In Lima, on the eighth day of the month of September of two thousand seventeen. LUIS GALARRETA VELARDE President of the Congress of the Republic MAURICIO MULDER BEDOYA Third Vice President of the Congress of the Republic TO THE PRESIDENT OF THE REPUBLIC THEREFORE: I order that this be published and complied with. Given in the Government House, in Lima, on the thirteenth day of the month of September of the year two thousand seventeen. PEDRO PABLO KUCZYNSKI GODARD President of the Republic FERNANDO ZAVALA LOMBARDI President of the Council of Ministers 1565315-1 EXECUTIVE BRANCH PRESIDENCY OF THE COUNCIL OF MINISTERS Supreme Decree that approves the National Policy on Integrity and the Fight against Corruption SUPREME DECREE Nº 092-2017-PCM THE PRESIDENT OF THE REPUBLIC CONSIDERING: That the fight against corruption is a constitutional mandate derived from articles 39, 41, and 44 of the Political Constitution of Peru, which has been reaffirmed in the National Agreement signed on July 22, 2002, which establishes as State Policy the affirmation of an efficient and transparent State (policy 24), as well as the promotion of ethics and transparency and the eradication of corruption in all its forms (policy 26); That article 55 of the Political Constitution of Peru establishes that treaties celebrated by the State and in force form part of national law; That the Peruvian State, through Supreme Decree Nº 012-97-RE, ratifies the Inter-American Convention against Corruption, and through Supreme Decree Nº 075-2004-RE ratifies the United Nations Convention against Corruption; likewise, Peru has committed to the execution of the Sustainable Development Goals of the United Nations Organization, among which stands out “Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels” (goal 16), which has as goals to substantially reduce corruption and bribery in all its forms, and create effective, accountable and transparent institutions at all levels. That, through Supreme Decree N° 054-2011- PCM, the Bicentennial Plan: Peru towards 2021 is approved, which establishes in strategic axis 3 on the State and Governance, the fight against corruption at all levels of government, as well as to promote mechanisms of citizen participation in public decisions, strengthening their oversight capacity and guaranteeing the transparency of public information and accountability in all instances of government; That, various norms referring to the fight against corruption and the promotion of integrity have been approved, which set certain policy guidelines in the fight against corruption, such as Law N° 27806 – Law on Transparency and Access to Public Information, Law N° 27815 – Law of the Code of Ethics, Supreme Decree Nº 046-2013-PCM which approves the Anti-Corruption Strategy of the Executive Power, Law N° 29976 - Law that creates the High-Level Anti-Corruption Commission; Law N° 30650 by which the imprescriptibility of crimes against Public Administration or against the State's Patrimony is declared, among others; That, it is necessary to consolidate the efforts developed in a National Policy on Integrity and the Fight against Corruption, in order to orient, through general and specific guidelines, the actions and strategies deployed by the State through the management instrument that configures the National Plan on Integrity and the Fight against Corruption, as well as those plans or management instruments connected to the national policy; That, numeral 3 of article 118 of the Political Constitution of Peru, establishes that it is an attribute of the President of the Republic to direct the general policy of the Government; That, numeral 1 of article 4 of Law Nº 29158, Organic Law of the Executive Power, indicates as exclusive competencies of the Executive to design and supervise national policies, which are approved by Supreme Decree with the approving vote of the Council of Ministers; That, it is necessary to adopt a National Policy on Integrity and the Fight against Corruption that renews the State's commitment to eradicate corruption in all its instances, and likewise, order and integrate the decisions adopted in matters of prevention, detection and sanction of corruption. That, article 1 of Law N° 29976 creates the High-Level Anti-Corruption Commission with the object of articulating efforts, coordinating actions and proposing policies and plans to prevent and combat the country's corruption, El Peruano / Thursday, September 14, 2017 LEGAL NORMS 5 plans for the prevention and fight against corruption and the National Plan to Fight Against Corruption, among others. That, the High-Level Anti-Corruption Commission in its Twenty-Seventh Session held on February 13, 2017, adopts as a unanimous decision the approval of the proposal for the National Policy on Integrity and the Fight against Corruption, elaborated through a participatory process led by the General Coordination of the High-Level Anti-Corruption Commission, a proposal that was sent to the Executive Power for its respective evaluation and corresponding approval. In accordance with what is established in numeral 8 of article 118 of the Political Constitution of Peru, and numeral 3 of article 11 of Law Nº 29158, Organic Law of the Executive Power; and, With the approving vote of the Council of Ministers; DECREES: Article 1.- Approval of the National Policy on Integrity and the Fight against Corruption. Approve the National Policy on Integrity and the Fight against Corruption, which, as an Annex, forms an integral part of this Supreme Decree. Article 2.- Scope of Application. The National Policy on Integrity and the Fight against Corruption is mandatory for all entities of the different Powers of the State, Autonomous Constitutional Bodies and of the different levels of government, who must adapt their regulatory framework to this norm. It is also mandatory for the private sector and civil society, insofar as it is applicable to them and, in what is not, it serves as a guiding or orienting instrument. Article 3.- Implementation and execution of the National Policy on Integrity and the Fight against Corruption The State entities that are within the scope of application of the National Policy on Integrity and the Fight against Corruption, have the implementation and execution of the same, within the framework of their competencies. Article 4.- Coordination and articulation The State entities that are under the scope of this norm have the duty and obligation to coordinate and articulate with those entities that, in the exercise of their competencies and functions, are required to achieve the objectives that correspond to them, without prejudice to the coordination and articulation that corresponds to the High-Level Anti-Corruption Commission and the Presidency of the Council of Ministers, within the framework of their competencies and functions. Article 5.- Follow-up, monitoring and evaluation. The High-Level Anti-Corruption Commission through its General Coordination is responsible for carrying out the follow-up, monitoring and evaluation of the National Policy on Integrity and the Fight against Corruption and the National Plan on Integrity and the Fight against Corruption. The State entities that are under the scope of this norm have the duty and obligation to carry out the follow-up, monitoring and evaluation of the actions that, within the framework of the Policy and its Plan, within the framework of their competencies. The Regional Anti-Corruption Commissions collaborate and support the General Coordination of the High-Level Anti-Corruption Commission in the follow-up, monitoring and evaluation of the National Policy on Integrity and the Fight against Corruption, in their respective jurisdictions. Article 6.- Of the National Plan on Integrity and the Fight against Corruption. The National Policy on Integrity and the Fight against Corruption has a National Plan that is updated periodically every 4 years, developed by the High-Level Anti-Corruption Commission and approved by Supreme Decree. The National Plan on Integrity and the Fight against Corruption develops the objectives of the policy, specifying the actions, goals, indicators, deadlines and responsible entities for the implementation of the objectives and guidelines contained in the National Policy on Integrity and the Fight against Corruption. Article 7.- Budget and Financing. The implementation of the objectives, goals and guidelines of the National Policy on Integrity and the Fight against Corruption, as well as its National Plan is subject to the budgetary availability of the involved entities, in accordance with the Annual Budget Laws, without demanding additional resources from the Public Treasury. Article 8.- Publication. This Supreme Decree and its Annex are published in the Official Newspaper El Peruano, in the Portal of the Presidency of the Council of Ministers (http://www.pcm.gob.pe/), in the Institutional Portal of the High-Level Anti-Corruption Commission (http://can.pcm.gob.pe/) and in the Institutional Portal of the Ministry of Justice and Human Rights (http://www.minjus.gob.pe/). Article 9.- Refrendo. This Supreme Decree is refrended by the President of the Council of Ministers and the Minister of Justice and Human Rights. FINAL COMPLEMENTARY PROVISIONS First: Normative reference to the National Plan on Integrity and the Fight against Corruption.- From the entry into force of this Supreme Decree, understand that any normative reference to the National Plan to Fight against Corruption, refers to the National Plan on Integrity and the Fight against Corruption. Second: Elaboration of the proposal for the National Plan on Integrity and the Fight against Corruption.- The High-Level Anti-Corruption Commission, within a maximum period of fifty (50) business days, within the framework of its functions, will elaborate a proposal for the National Plan on Integrity and the Fight against Corruption that it will present to the Executive Power, which allows the articulation and coordination between entities for the implementation of the policy. COMPLEMENTARY DEROGATORY PROVISION Single: Derogation of literal 11 of article 2 Supreme Decree Nº 027-2007-PCM Literal 11 of article 2 of Supreme Decree N° 027-2007-PCM, Supreme Decree that defines and establishes the National Policies of mandatory compliance for the entities of the National Government, concerning policies in anti-corruption matters, is derogated. Given in the Government House, in Lima, on the thirteenth day of the month of September of the year two thousand seventeen. PEDRO PABLO KUCZYNSKI GODARD President of the Republic FERNANDO ZAVALA LOMBARDI President of the Council of Ministers María Soledad Pérez Tello Minister of Justice and Human Rights

6 LEGAL NORMS Thursday, September 14, 2017 / El Peruano NATIONAL POLICY ON INTEGRITY AND THE FIGHT AGAINST CORRUPTION High-Level Anti-Corruption Commission (CAN) General Coordination of the CAN Mónaco Passage Nº 171 - Urb. Prolongación Benavides – Santiago de Surco Lima – Peru Telephone: (511) 2197000 extension 7401 Internet: http://can.pcm.gob.pe The National Policy on Integrity and the Fight against Corruption has been approved by the Government of Peru through Supreme Decree N° …………, based on the proposal elaborated by the High-Level Anti-Corruption Commission (CAN). Index I. PRESENTATION II. LEGAL BASIS Normative Advances Delegation of Legislative Powers 2016 III. METHODOLOGY IV. DIAGNOSIS Introduction Definition of corruption Types of corruption Identification of actors Current state of corruption in Peru Situation on perception of corruption and governance Situation of mechanisms that promote public integrity Situation on sanction of corruption Causes and effects of Corruption Justification of the National Policy V. RELATED POLICIES Sustainable Development Goals National Agreement Bicentennial Plan: Peru towards 2021 National Policy for the Modernization of Public Management VI. POLICY OBJECTIVES I. AXIS 1: Preventive capacity of the State against acts of corruption II. AXIS 2: Identification and Risk Management III. AXIS 3: Sanctioning capacity of the State against acts of corruption VII. NATIONAL STANDARDS OF MANDATORY COMPLIANCE BIBLIOGRAPHY I. PRESENTATION Corruption is a phenomenon that affects the country's governance, trust in institutions and people's rights, it also has different manifestations and appears in a diverse manner in the social, political and economic scenario. Its negative effects reach even transcending borders, taking advantage of sophisticated criminal networks that exploit institutional weakness and vulnerable sectors to capture decision-making. Corruption, being a multidimensional phenomenon, occurs systematically, and at different levels and sectors of public administration, thus appearing in pre-decisional processes such as the improper financing of political groups in electoral campaigns; during decision-making, for example, in the design of public policies directed at particular interests, as a consequence of conflicts of interest and traffic of influences; and, in post-decisional processes, in public management affecting the efficient provision of public services. Although it is true, in recent decades the country has presented one of the highest economic growth rates in Latin America and in the world, this growth has not been efficiently exploited due to corruption schemes, making it difficult to sustain this growth. An example of this is the results obtained by Peru in the Corruption Perception Index of the year 2016, elaborated by Transparency International, in which we occupy position 101 of the 176 countries evaluated, a situation that implies a setback in relation to previous years. Likewise, in the last opinion poll carried out by INEI through the National Household Survey that covered the period between November 2016 and April 2017, 48.1% of those surveyed consider corruption as the main problem affecting the country, surpassing even citizen insecurity. Therefore, the main tool that States have to mitigate this phenomenon and its pernicious effects are public policies, originated from coordinated and articulated work between the main strategic actors. In light of the current situation that our country and the world are going through as a consequence of corruption, it is necessary to reaffirm the commitment of all strategic actors in the fight against corruption, adopting for this purpose, a national policy, which establishes the necessary framework to eradicate the causes and counteract the effects that this phenomenon produces. Therefore, the High-Level Anti-Corruption Commission as a space for coordination and articulation between the main public entities, the business sector and civil society, in compliance with its main function of proposing short, medium and long-term policies for the prevention and fight against corruption in an intersectoral and intergovernmental manner; elaborated and approved the present proposal for the National Policy on Integrity and the Fight against Corruption, which, being close to celebrating the bicentennial of our independence, is fundamental and urgent to achieve an integrated, inclusive and efficient State at the service of the citizen. Dr. Duberlí Apolinar Rodríguez Tineo President of the High-Level Anti-Corruption Commission II. LEGAL BASIS The Fight against Corruption is a constitutional mandate derived from articles 39º, 41º and 44º of our Magna Carta, as the Constitutional Tribunal has reaffirmed in various resolutions [1], explicitly stating that: “(…) the very combat against any form of corruption also enjoys constitutional protection.”; it is for this reason, that the Peruvian State has reaffirmed this commitment by signing and ratifying the main international instruments on the matter such as the Inter-American Convention against Corruption[2] (1996) and the United Nations Convention against Corruption [3] (2003), in which a set of measures are proposed to detect, investigate and sanction corrupt conduct, as well as the promotion of preventive actions and international cooperation. Thus, the Inter-American Convention against Corruption expresses that one of its purposes is that the States parties promote and strengthen the development of the necessary mechanisms to prevent, detect, sanction and eradicate corruption; in turn, the United Nations Convention against Corruption proposes a more concrete advance by stating that: “Each State Party, in accordance with the fundamental principles of its legal system, shall formulate and apply or maintain in force coordinated and effective policies against corruption”. On the other hand, Peru has reiterated its commitment to the fight against corruption in other international spaces such as the Organization for Economic Co-operation and Development (OECD), the Asia Pacific Economic Forum (APEC), the Community of Latin American and Caribbean States (CELAC), Summits of the Americas, among others, being that it has also committed to the execution of the Sustainable Development Goals of the United Nations Organization, which has within its goals to reduce corruption and bribery in all its forms and create effective, responsible and transparent institutions at all levels. The National Agreement of the year 2002 signed between public authorities, representatives of the main political organizations and civil society, is an initiative that sets a route for sustainable development over time, focused on defining, based on dialogue and consensus, State Policies; it is thus, that among the thirty-four policies established, within the category “Efficient, Transparent and Decentralized State”, the Twenty-Sixth Policy provides the following: “Promotion of ethics and transparency and eradication of corruption, money laundering, tax evasion and smuggling in all its forms.”. Likewise, through Supreme Decree Nº 054-2011-PCM the “Bicentennial Plan: Peru towards 2021” is approved which establishes as one of its national objectives to achieve a: “Democratic and decentralized State that functions with effectiveness, efficiency and articulated between its different sectors and the three levels of government at the service of citizenship and development, guaranteeing national security”, for which reason it has considered as a policy guideline for Governance: “Fight against corruption in the country, at all levels of government”. The Organic Law of the Executive Power – Law Nº 29158 constitutes the normative support for the elaboration of national policies, establishing in article 1 that these are approved by supreme decree with the vote of the Council of Ministers, and in numeral 2 of article 8 it specifies that the Executive Power has the function of: “Plan, regulate, direct, execute and evaluate national and sectoral policies in conformity with State policies”, limiting its article 17º that the Presidency of the Council of Ministers is responsible for the coordination of national and sectoral policies; likewise, Supreme Decree Nº 046-2013-PCM which approves the National Policy for the Modernization of Public Management establishes as one of its specific objectives: “Promote that public entities at the three levels of government have clear, measurable, achievable and consistent objectives with National and Sectoral Policies”, for which it incentivizes the articulation of national and sectoral public policies through the promotion of debate and citizen participation. Taking this into account, the High-Level Anti-Corruption Commission in accordance with the functions established in article 3º of Law Nº 29976, carried out through its General Coordination –attached to the Presidency of the Council of Ministers– the work of articulation for the elaboration of the “National Policy on Integrity and the Fight against Corruption”, which responds to the need for a policy that is in line with the advances in the fight against corruption at the international and national level in recent years, added to the fact that it must be adapted to the parameters of Law Nº 29158 – Organic Law of the Executive Power related to the definition of objectives, content of public policy, guidelines, among others. Therefore, the “National Policy on Integrity and the Fight against Corruption” is a State policy that encompasses all levels of government and public actors, constituting a guide and orientation for the private sector. It is inscribed in the legal framework and the set of norms on the matter, respecting the treaties, agreements and international conventions ratified by Peru related to the fight against corruption. Normative Advances For this purpose, the adaptation of the legislation in penal matters to international standards has been carried out. Among the main adaptations made we have:

• The modification of article 2 of the Penal Code through Law N° 30076 with the purpose of introducing the figure of “value confiscation”, which allows confiscating a value equivalent to the of the ga

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