Following intense debate in a May 24 session, Peru's Congress decided to send a bill that seeks to expand the supervisory powers of banking regulator SBS back to the committee stage for further analysis.
Congressman Héctor Becerril was the primary proponent of returning the bill to the economy and production committee for the second time, according to a Gestion report. The bill would give the SBS supervisory authority over Peru's more than 600 savings and loan cooperatives.
The failure to approve the bill is a setback for the SBS, which had recently urged Congress to pass the bill before June 1 in order to help it clamp down on perceived weaknesses in Peru's anti-money laundering controls.
A mission from the Latin American Financial Action Task Force that is currently evaluating the country's anti-money laundering protocols is due to conclude its visit on June 1, El Comercio reported previously.
SBS chief Socorro Heysen has said the bill's passage would help Peru avoid placement on an international blacklist and keep its investment risk rating from falling.
According to data from industry association Fenacrep, there are currently 671 savings and loan cooperatives in Peru, 520 of which are not supervised by any government agency. Heysen said these companies are often set up solely for money laundering purposes.
