Peru

People

Peru is a source and destination country for human trafficking, with the main driver being domestic demand. Despite efforts to combat this, COVID-19 restrictions have made it more difficult to identify and prevent trafficking, leading to new forms of exploitation using digital technology. Criminal networks are targeting vulnerable Venezuelans, paying for their transportation, lodging and living expenses to force them into prostitution and pay quotas. Women and children, particularly indigenous people, are the most frequent victims. Corruption among officials exacerbates this criminal market. Trafficking is more common in areas near illegal mining operations. Tourists from the US and Europe also contribute to the problem, exploiting victims in popular tourist areas such as Cuzco, Lima and the Peruvian Amazon.

Peru is also a destination and transit country for human smuggling, particularly for people from Venezuela, Haiti, and African and Asian countries, and for those seeking to reach North America. There are reports of illegal transportation of Venezuelans across the border from Ecuador to Peru. The smuggling of people is facilitated by drivers linked to land transport companies, particularly in the city of Tumbes and the region of Madre de Dios. Criminal networks include police officers and migration officials who work at control points across the border and facilitate illegal activities. The current political situation in Peru may subject smuggled individuals to extortion, scams and thefts as they try to move closer to their connecting points.

Extortion and protection racketeering is a prevalent criminal market in Peru, affecting various industries, including public transport, construction and commerce. Criminal groups use a range of tactics, including ‘security quotas’ and predatory loans, to extort businesses and individuals. These practices have increased during the economic recovery following the COVID-19 pandemic. While law enforcement agencies have dismantled several criminal groups and arrested their members, the Peruvian National Police received more extortion complaints in 2022 compared to 2021, indicating that the issue remains a notable concern.

Trade

Peru remains a transit country for arms trafficking, with weapons from the US and Mexico being transported through Peru to Ecuador and then on to Colombia. This illicit arms trade is supported by organized criminal groups across the country, particularly in relation to cocaine production. The profits from the market benefit domestic actors, with weapons such as pistols, revolvers and breech loading shotguns being sold on the black market. Despite an increase in violence associated with criminal activities throughout the country, there is a lack of regional policies to address the magnitude and scope of the problem, and the police’s capacity to investigate this market is very limited. The border between Peru and Ecuador continues to play an important role for arms traffickers aiming to exchange arms between the two countries. Weapons and ammunition arriving in Ecuador from Peru also reach guerilla and armed groups active in Colombia.

Counterfeit goods are a significant problem in Peru, with the trade estimated to be worth hundreds of millions of dollars. Healthcare products, particularly medicines, are a major concern, with almost a quarter of medicines sold in Peru being counterfeits. The COVID-19 pandemic has also benefited the counterfeit goods market, with authorities conducting operations to prevent the entrance of counterfeit pharmaceutical products that could endanger patients’ health. Additionally, integration with transnational groups in border areas has enabled them to trade and traffic counterfeit goods to neighbouring countries. There is no evidence to suggest that the illicit trade in excise goods is prevalent in Peru.

Environment

Illegal activities such as logging, mining and wildlife trade continue to fuel deforestation and threaten indigenous communities in Peru. Logging is the most common flora crime, associated with other crimes such as drug trafficking and illegal mining. Deforestation in Peru hit historic levels during the COVID-19 pandemic, with most of the timber trade being illegal, generating hundreds of millions of dollars for trafficking networks. Criminal actors exploit legislative grey areas, manipulate paperwork and avoid control points to sell directly to local markets or smuggle wood to neighbouring countries. Effectively addressing this crime is challenging due to the country’s extensive territory.

In recent years, wildlife trafficking has experienced an upsurge in Peru, with thousands of live animals being seized by law enforcement every year. The illegal trade of shark fins at the Ecuador-Peru border remains problematic, with destinations including the US, Europe and Asia. Indigenous people in the Amazon region capture animals and sell them to middlemen, who then sell them to retailers in local markets, or to international collectors. The most trafficked species in Peru are birds, small primates, larger animals, such as the Andean bear, vicuñas, monkeys and various cats. Animal parts, reptiles and amphibians are also part of this illicit trade. Wildlife is sold in local markets without adequate social awareness of the negative impact, and low-paid officers often accept bribes to provide protection and permit the transport of illegally sourced animals.

Illegal gold mining is a pervasive criminal activity in Peru, with annual profits reaching billions of dollars, making it more lucrative than the country’s cocaine trade. A fifth of Peru’s gold exports are of illegal origin, and criminal actors charge miners for escorting machinery, chemicals and gold in exchange for ‘peace and security’ in their domains. Most criminal groups involved in illegal mining are family-based networks, where corruption is rampant, with officers and prosecutors facilitating impunity. Regions with prevalent illegal mining also have a high incidence of human trafficking, particularly for sexual labour exploitation. Smuggling of illegally mined gold into other countries has become more profitable in recent years, further increasing concerns.

Drugs

Peruvian drug mafias mainly export opium, as they lack the laboratories needed to process it into heroin. Nevertheless, opium cultivation is on the rise in Peru, with opium latex being transported from the three different regions: Piura, Cajamarca and Amazonas, to Ecuador. The opium market is expanding to other regions, such as La Libertad, Junin, Cusco and Lima. Domestic actors profit from cultivating opium and micro-commercializing heroin. However, there are currently few economic or geographic incentives to develop this market since coca cultivation is still highly profitable.

Despite law enforcement measures to decrease coca plantations, Peru remains a significant source country for cocaine. The COVID-19 pandemic and falling coffee prices have increased coca cultivation. Operations that destroy coca crops only displace the trade into other territories. In recent years, there has been a surge in demand for and production of cocaine, with international demand rising and production increasing. Serbian mafias have displaced Mexican and Colombian mafias as the actors controlling the market in Peru, with the Shining Path providing security for crops in the VRAEM region (Valley of the Apurímac, Ene and Mantaro Rivers). Cocaine produced in Peru is almost exclusively transported to the international market, through various international shipment routes.

Peru has become an important producer of marijuana, particularly in the Huanuco region, which has been a major source for neighbouring Bolivia and Chile. The VRAEM region, where remnants of the Shining Path and cocaine traffickers operate, has also seen an increase in marijuana plantations. While the cultivation, transport and sale of medical cannabis is legal in Peru, most reported cases of marijuana seizures in the country are related to micro-drug commercialization. Small criminal networks serve local demand for cannabis in Peru.

Peru is also a source country for most of the supplies used to make synthetic drugs, which are then sent to Paraguay. Loose criminal networks tend to be involved in synthetic drug seizures in Peru, and there has been a surge in the use of these drugs among young partygoers, particularly in Lima. Popular drugs include 25I-NBOME and 2CB, known as ‘pink cocaine/wax’, from Colombia. Domestic actors who transport and micro-commercialize the drugs profit from the synthetic drug market, with some possible involvement from foreign nationals.

Cyber Crimes

Peru has recently been targeted by international organized crime groups in cyber-attacks aimed at intelligence services and critical infrastructure. Military forces have also been attacked, resulting in leaked classified information. However, there is limited transparency regarding the presence and scale of cyber-dependent crimes in Peru. The lack of strong technological capabilities in the financial system and state institutions creates a fertile ground for these crimes to flourish. The Peruvian government has not made a public statement on the recent attacks, raising concerns about its ability to handle the institutional and technological challenges of cybercrime.

Financial Crimes

Financial crimes are on the rise, including online scams, such as phishing and computer fraud, which have seen exponential growth in recent years. Phishing attempts are frequently made through email or social media messaging, while tax evasion remains a prevalent issue for the country. The Peruvian government has also identified numerous instances of irregular activity related to embezzlement during the COVID-19 pandemic. However, there is currently no evidence linking these acts to organized crime.

Criminal Actors

The presence of criminal networks is a major problem in Peru, particularly in Lima and the Constitutional Province of Callao, where they engage in the micro-commercialization of drugs, robberies, extortion, human trafficking and flora crimes. These networks also use tactics such as hiring paramilitaries to maintain control over their criminal markets. Additionally, they work in connection with international mafias, particularly those from Serbia, Colombia and Mexico, to process and transport cocaine to Lima and border regions. Some of these groups also have ties to criminal activity within local jails.

Crime organizations are deeply embedded in the state, and most official investigations into crime groups find some level of complicity from law enforcement agencies, politicians and even judges. Peruvian police officers have been accused of providing security during the transportation of illicit goods, including illegally sourced animals and timber, as well as providing protection to criminals. The COVID-19 pandemic has exacerbated corruption in several parts of the country.

Many criminal groups in Peru are small and operate locally. Mafia-style groups have significant control over certain regions, such as Loreto and Ucayali, where they primarily engage in timber trafficking, and the VRAEM area, which is controlled by drug traffickers and the Shining Path guerrilla group. Other criminal groups operate throughout Peru, controlling territories and infiltrating state structures while outsourcing some of the resources they need.

Peru is also home to several foreign criminal groups that engage in drug trafficking and other illicit activities. Balkan mafias, for example, are strong in the country and are responsible for trafficking cocaine from Peru to Europe, with the help of local drug traffickers. Venezuelan networks engage in human trafficking operations that aim to sexually exploit their victims, while other prominent foreign criminal groups include the Italian mafia, and Colombian, Mexican and Ecuadorian cartels. These foreign criminals rely on local actors to cultivate coca leaves and transport cocaine throughout the country.

The collaboration of companies with criminal actors in Peru is fundamental in certain criminal markets. In the illegal trade of gold, for example, criminal groups rely on legal businesses within the mining industry, as well as local businesses. These companies are key players in the illicit supply chain, as they buy a notable amount of gold from illegal miners for considerably reduced prices. Due to deficient oversight, businesses can sell and export illegal gold, covering its origin through fake transactions and documents. Similarly, in the case of illegal logging, legal transport companies are employed to move the products and are provided with fake documentation of the woods’ origin. These companies use individuals with financial difficulties to cash cheques for criminal organizations.

Leadership and governance

Peru’s political landscape has been plagued by instability, with the current president facing widespread opposition and criticism following her appointment. The lack of democratic legitimacy in the executive and legislative branches of the government has led to protests and calls for all politicians to step down. Peru’s political leadership appears to be ineffective at all levels, with weak capacity to control and prevent illegal markets from flourishing. While some policies to combat organized crime have been approved, there is no political or professional will to effectively tackle a culture of illegality that has permeated Peruvian society. Peru’s judiciary has demonstrated impressive levels of independence and resilience in high-profile cases, making it possible to investigate and prosecute a number of very high-level politicians. However, this seems not to be a deterrent to corruption in the country, as numerous political elites have faced allegations of corruption and human rights violations. Furthermore, access to information in Peru is fairly good, although there is still no independent appeals body in place.

Peru is actively engaging in international cooperation efforts to combat corruption and organized crime. The country has also entered into several extradition treaties, and compliance with these procedures are generally observed. The country has ratified and entered into force all relevant treaties and conventions pertaining to organized crime. Peru has also implemented various national policies and laws to address organized crime, drug trafficking, terrorism and other criminal activities. However, many of these laws are not adequately enforced, and criminal procedures tend to be weak and slow.

Criminal justice and security

The judicial system in Peru is slow and lacks trustworthiness in relation to organized crime cases that are not high-profile. Judicial notices take a long time to be delivered to all parties involved. In recent years, Peru has established the Superior Courts of Justice specialized in Crimes of Organized Crime and Corruption of Officials. This comprises seven specialized criminal courts, four permanent appeal courts, and three transitional courts specifically addressing organized crime and corruption cases. Peru’s prisons are overcrowded, a substantial problem across the country.

Budget cuts and transfers of officers to other departments have raised concerns of political retaliation and weakened investigations into corruption and organized crime. Despite these challenges, Peru’s national policy has resulted in the dismantling of several mafia-style groups involved in contract killings, kidnappings, extortion and trafficking across the country. However, the international community and civil organizations have reported instances of excessive use of force by the police during mass protests. Police effectiveness in crime prevention and control is minimal, with budget constraints limiting their ability to make progress in combatting organized crime and drug trafficking.

Organized groups have taken control of Peru’s northern border with Ecuador and southern borders with Bolivia and Chile, targeting Venezuelans, minors and Peruvians for human smuggling activities. Despite the presence of minefields and heat-sensing cameras on the Chilean border to Peru, smugglers have been able to transport foreign nationals using fraudulent documentation. Peru’s strategic location for the cocaine trade, due to its suitability for coca leaf cultivation and vast ungoverned areas, enables groups such as the Shining Path and drug trafficking clans to flourish. The country’s border with Bolivia and Brazil provides access to Brazil’s growing domestic cocaine market and international shipping routes, with authorities reporting an increase in cocaine production in border areas. The Napo River has been particularly affected by illicit activities, including drug trafficking and mining.

Economic and financial environment

Peru is considered to have a low risk of money laundering and terrorist financing. The country has made significant improvements in recent years with regards to money laundering prevention, including the approval of the National Plan. However, despite adequate legal frameworks and policies on money laundering, there is a need to prioritize investigations and increase resources to strengthen the operational and management capacity of the Public Prosecutor’s Office.

The informal economy in Peru has grown and become more prevalent in multiple economic sectors. Peru also has some of the highest taxes in the South American region, which incentivizes criminal markets to smuggle goods. Organized crime is particularly prevalent on the north coast of Peru, where it has emerged in parallel with economic growth. Companies of all sizes have been victims of extortion, especially in public transport, construction and commerce. This phenomenon has spread through several cities, from Callao to Tumbes. The police have been combatting extortion through ‘mega-operations’ that involve all law enforcement entities.

Civil society and social protection

Peru recognizes human trafficking and migrant smuggling as crimes against human dignity and provides means to compensate victims. However, support services for LGBTQ+ and male victims have remained limited. Peru’s national legislation offers protection to witnesses, victims and collaborators involved in organized crime investigations, including police protection, change of address and personal data protection. Nevertheless, criminal organizations have been known to kill protected witnesses.

The Ministry of Interior in Peru has introduced a Guide for the Prevention of Organized Crime, aimed at reinforcing the fight against criminal organizations and promoting citizen safety. However, the effectiveness of initiatives to prevent crime is hindered by sporadic implementation, lack of inter-institutional coordination and limited resources.

Journalists in Peru face judicial harassment, physical and verbal abuse by political activists, and inadequate protection despite press freedom guarantees. Environmental defenders have been killed by actors linked to drug trafficking, illegal logging and mining, leading to human rights abuses. Non-state actors reporting on corruption and criminal organizations in remote areas face violence and even death. The political turmoil and violent demonstrations since the impeachment of former president Pedro Castillo have raised concerns about potential human rights abuses in the country. Limited access to public information and inadequate protection for journalists, who face intimidation and abuse, compound the situation.