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Peru president urges Congress to fast-track cooperatives bill

Peru's President Martín Vizcarra has called on the country's congress to approve the proposed cooperatives law before its last plenary session on June 15, SEMANAeconómica reported.

The bill advocates for the creation of a body linked to banking and insurance regulator SBS that will supervise savings and credit cooperatives.

According to Vizcarra, credit unions currently do not need authorization to start operations, leading to the likelihood of illegal operations and crimes such as money laundering. "If we want to fight against informality and money laundering we have to take concrete steps in all fields. No one can be excluded from inspection and control," the president said.

SBS earlier criticized a proposal by a congressional committee to establish a new entity to supervise savings and loans cooperatives, saying that this measure would create more bureaucracy and not facilitate oversight of the entities.

After intense debate on May 24, Congress sent the bill that will determine if SBS' powers will be extended back to the committee stage for further analysis.