Political finance

General

How are political parties and politicians funded in your jurisdiction?

According to Law No. 28,094 (the Law on Political Organisations), political parties receive financing from the public sector only if they obtain representation in Congress, and political organisations are allowed to receive financing from the private sector, provided that it does not come from a prohibited source.

Registration of interests

Must parties and politicians register or otherwise declare their interests? What interests, other than travel, hospitality and gifts, must be declared?

All income or contributions must be paid through the banking system and controlled by the National Office of Electoral Processes (ONPE).

According to the Law on Political Organisations, both political parties and politicians must declare their interests. Therefore, political parties, regional or departmental bodies, and political organisations of provincial and district scope must present to the Peruvian Tax Authority, every six months from the beginning of the fiscal year, a report detailing all their financial transactions. Likewise, the Peruvian Tax Authority may require from the political parties a list of contributions, which must specify the amount of each contribution, and, where appropriate, the names and addresses of the persons who have donated them.

Contributions to political parties and officials

Are political contributions or other disbursements to parties and political officials limited or regulated? How?

According to the Law on Political Organisations, the verification and external control of the financial activity of political parties, regional or departmental bodies and provincial and district political organisations is exclusively the responsibility of the ONPE, through the Peruvian Tax Authority.

In addition, each political party must implement a system of internal control to ensure the proper use and accounting of the acts and documents from which rights and obligations of economic content are derived, according to the statutes of each political party.

According to Law No. 30,414 which modifies Law No. 28,094 (the Law on Political Organisations) and incorporates article 42 that regulates prohibited conduct in political promotion, a political organisation, in the framework of an electoral process, cannot promise or offer money, gifts or other inducements of an economic nature - unless such was part of its electoral promotion, in which case it should not exceed 0.5 per cent of the tax unit. Misconduct will be sanctioned by the ONPE with a fine of 100 times the tax unit within a period no longer than 30 days.

Also, on 27 August 2019, Law No. 30,997 was published, incorporating new crimes related to contributions to political parties into the Criminal Code:

  • Crime of prohibited financing of political organisations (article 359-A of the Criminal Code) - refers to penalising a person who directly or indirectly requests, accepts, delivers or receives a contribution, donation or any other type of benefit from a source of financing prohibited by law, knowing or being required to know its origin, for the benefit of a political organisation or electoral alliance, registered or in the process of registration.
  • Distortion of information on contributions to, and income and expenses of, political organisations (article 359-B of the Criminal Code) - this type of crime is limited to the situation where the treasurer, campaign manager, legal representative or a member of the political organisation, with full knowledge, provided false information in the reports on contributions and income received, or in those referring to the actual expenses of the electoral campaign, or in the annual financial information.
  • Sources of financing prohibited by law (article 359-C of the Criminal Code) - describes the illegal sources of financing that come from:
    • any public-law entity or company owned by the state, other than direct or indirect public financing to political organisations;
    • anonymous monetary contributions in excess of two tax units;
    • individuals with an enforceable sentence, or with a mandate of preventive detention in force, for crimes against public administration, illicit drug trafficking, illegal mining, illegal logging, trafficking in persons, money laundering or terrorism; and
    • national or foreign legal persons sanctioned criminally or administratively in the country or abroad for the commission of a crime, or who have been sanctioned in accordance with the provisions of Law No. 30,424.
Sources of funding for political campaigns

Describe how political campaigns for legislative positions and executive offices are financed.

Political campaigns for public office are financed by the public sector, as long as the political parties that are campaigning obtain representation in Congress. In that regard the state will allocate the equivalent of 0.1 per cent of the tax unit for each vote cast.

These funds are granted from the general budget and are received by the political parties to be used in training and research activities during the five-year period following the election, as well as for their ordinary operating expenses.

All political parties can receive private financing through:

  • quotas and monetary contributions from their members;
  • income from any additional business activities and the returns from their own assets. These may not exceed 30 tax units per year, if the contributors cannot be identified;
  • income from other contributions under the terms and conditions provided for in the Law on Political Organisations;
  • interest on loans owned by them;
  • legacies they receive; and
  • in general, any benefit in cash or in kind they obtain.
Lobbyist participation in fundraising and electioneering

Describe whether registration as a lobbyist triggers any special restrictions or disclosure requirements with respect to candidate fundraising.

There is currently no regulation on the information that the registry must contain or the reports that the interest manager must provide.

Independent expenditure and coordination

How is parallel political campaigning independent of a candidate or party regulated?

Parallel political campaigning independent of candidates or political parties is not regulated in Peru.