Peru is among the most challenging jurisdictions for corporate compliance globally
Article 2 minute read

Peru is among the most challenging jurisdictions for corporate compliance globally

24 August 2018

While Peru is not the most complex jurisdiction for compliance in Latin America, global trends shaping legislation around the world are making it harder for businesses to be compliant in this country.

Peru is one of the world’s most challenging countries for corporate compliance, according to TMF Group’s Compliance Complexity Index which ranks 84 jurisdictions based on the difficulty of adhering to local business regulations and associated issues; such as the time it takes to set up companies and meet local reporting requirements.

It may become even more complex in Peru as the country develops new legislation to strengthen compliance standards. Peru ranked 14th, while the UAE is the most complex jurisdiction globally. 

The world’s most complex countries for corporate compliance are:

  1. UAE
  2. Qatar
  3. China
  4. Argentina
  5. Malaysia
  6. Lebanon
  7. Brazil
  8. Vietnam
  9. Poland
  10. Uruguay

Comparing Peru to other Latin American countries in the region, only Argentina (4), Brazil (7), and Uruguay (10) were found to be more complex. 

Peru’s relatively high position this year underscores the government’s efforts to toughen compliance protocols. Laws like Legislative Decree 1352 (approved last year), a modification of Law 30424 of 2016, which regulates the administrative responsibility of legal entities for active transnational bribery, has complicated compliance in the country.

In addition to extending Law 30424 to hold legal entities responsible for the bribery of public functionaries, Legislative Decree 1352 also prioritized the implementation of a demanding compliance program for companies operating in Peru.

TMF Peru Managing Director Esteban Hilgert said, “By exempting companies with a rigorous corporate governance structures that comply with government standards from bribery charges, the government fosters the creation of those structures at a corporate level.”

Nevertheless, Hilgert does not expect these measures to improve Peru’s standing regarding compliance complexity, “Considering the changes in the works, it wouldn’t be surprising to see Peru move up in next year’s CCI rankings as companies begin to feel the effects of upcoming regulations.”

Throughout the world, corporate compliance has become both more transparent and more complicated at the same time. Regulations differ from country to country making the global complexity landscape hard to navigate.  

The increasing corporate compliance complexity in Peru will make it harder for multinational companies to set up businesses in the country. TMF Group has the local knowledge to help you identify and face any challenge or opportunity for your business. Learn more about TMF Peru.

Download the 2018 Compliance Complexity Index here.

Questions? Make an enquiry with us today.

Don’t let complexity hold you back - find out how our corporate secretarial services help companies of all sizes reach even greater heights.

Written by

Raimundo Diaz

Head of Americas

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