Country Reports on Terrorism 2013 - Peru

Overview: The Shining Path (Sendero Luminoso or SL) remained a significant threat to Peru's internal security, although its numbers have shrunk considerably from its peak in the early 1990s when it numbered between 7,500 and 10,000 combatants in its ranks. By the end of 2013, the SL consisted of a single active faction with an estimated 300 to 500 fighters. Its area of activity and influence was largely confined to the special military emergency zone known as the Apurimac, Ene, and Mantaro River Valley (VRAEM), a remote and rugged region slightly larger than Switzerland that accounts for over half of the cocaine produced in Peru. The SL sustained itself through its involvement in drug production, narcotics trafficking, and extortion of "revolutionary taxes" from others involved in the drug trade. It continued to use Maoist philosophy to justify its illegal activities. The SL faction that previously operated in the Upper Huallaga Valley (UHV) collapsed following the capture of its leader, Florindo Flores Hala, better known as Comrade Artemio, in February 2012. Artemio was the sole remaining member of the SL's historic Central Committee from the 1980s and 1990s that had not already been convicted or killed.

On August 10, an operation conducted by a joint military-police task force in the VRAEM resulted in the deaths of two of the SL's top leaders, Alejandro Borda Casafranca (also known as Comrade Alipio) and Martin Quispe Palomino (also known as Comrade Gabriel). Alipio was the SL's number two overall leader and widely recognized as its most capable and dangerous field commander. Gabriel occupied a spot on SL's Central Committee and was the brother of the faction's supreme leader, Victor Quispe Palomino (also known as Comrade Jose).

The demise of Alipio and Gabriel was the biggest blow sustained by the SL since the capture of SL's then-national leader, Comrade Feliciano, in 1999. The organization remains dangerous, however, and could reunite as it has done in the past after sustaining hard blows.

The joint operation that claimed the lives of Alipio and Gabriel was conducted in accordance with a new Peruvian government strategy that emphasizes intelligence and unity of command in combatting the SL. The successful operation also demonstrated the increasing ability of security forces to plan and execute complex missions and the willingness of military and police forces to work together. The government's new strategy, announced by President Humala in July, also stresses gaining control of territory in the VRAEM at the lowest cost in human lives. Three soldiers were killed in the VRAEM in 2013, a significant reduction from the 19 members of the security forces who lost their lives in armed confrontations with the SL in 2012.

There was some evidence to suggest declining popular support for the SL among the general population in the VRAEM. For example, the SL appeared to have made a crucial error on July 23 when one of its units, led by Alipio, set fire to heavy construction machinery being used to pave a highway linking the VRAEM with the city of Ayacucho. This was a project long sought by the local population as a means of improving their lives and reducing their isolation. The US$5 million in equipment losses sustained by the company building the highway caused it to pull out of the project, which cost many local employees their jobs and possibly created a one-year delay in connecting local farmers to markets for their products. Thousands of residents in the VRAEM subsequently participated in a government-organized "Peace March" on August 18 in Pichari, the region's unofficial capital.

The Movement for Amnesty and Fundamental Rights, a Shining Path political front organization founded in 2009, actively sought to increase its influence, particularly on university campuses and in undeveloped areas where the state had a minimal presence. The organization made a particular effort to attract support among agricultural workers and to penetrate teachers unions and university faculties. It also played an active role provoking opposition to development projects.

2013 Terrorist Incidents: According to the Government of Peru, the SL carried out 49 terrorist acts, a noticeable decline from the 87 reported acts it committed in 2012. The SL has not conducted any major operations against Peruvian security forces since Alipio and Gabriel were killed in August, except for repeated sniper fire at military outposts in the central VRAEM, particularly Union Mantaro. In addition to the July 23 incident mentioned above, notable SL action included:

• In March, the SL destroyed four cellular phone towers in the VRAEM. These actions likely reflected SL's desire to cut communication services in the special emergency zone that could be used by security forces to pinpoint the location of their rebel columns.

• On April 5, SL snipers fired on an Army counterterrorism base in the district of Echaratein the Department of Cusco, killed one soldier and wounded another.

• On June 5, a column of 23 armed SL fighters took over a worksite of Consorcio Vila Quinua in Ayacucho's Huanta province, seizing communication equipment, food, and medicine.

• On November 26, SL snipers killed a solder at the Union Mantaro counterterrorism base in Junin's Satipo province in the VRAEM.

Legislation, Law Enforcement, and Border Security: Peru has passed a variety of laws specifically designed to counter terrorism during the past three decades. In 2013, Peru passed two related laws (Law 29988 and Law 30076) which banned the hiring and/or rehiring within Peru's educational system of anyone convicted on terrorism charges. Congress also passed Law 30077, the Law against Organized Crime, which expanded the government's authority to conduct electronic eavesdropping against suspected terrorists. In January, Congress passed Law 29979, which established criteria to compensate victims of terrorism.

Peru has steadily improved its ability to detect, deter, and respond to terrorist incidents in the 21 years since police captured the SL's founder and chief ideologue, Abimael Guzman. Improved cooperation and information-sharing between specialized police and military counterterrorism units played a major role in the takedown of Alipio and Gabriel in August.

President Humala continued reauthorizing 60-day states of emergency in the VRAEM and the UHV emergency zones, giving the armed forces and police additional authority to maintain public order.

Immigration authorities collected no biometrics information from visitors. Citizens of neighboring countries were allowed to travel to Peru by land using only national identification cards. There was no visa requirement for citizens from Mexico and most countries in Western, Central, and Eastern Europe. Peruvian immigration used a database called "Movimiento Migratorio" at seven points of entry to track entries and exits of travelers, but the database was limited to Interpol and a local database that tracks outstanding warrants. Peruvian immigration did not have access to passenger name recognition data or a terrorist watch list.

Apart from the August 10 security force operation that resulted in the deaths of Alipio and Gabriel, the most significant law enforcement actions against the Shining Path this year included:

• In April, counterterrorism police disbanded a financial ring suspected of laundering more than US $150 million for SL.

• On June 7, Comrade Artemio, the long-time leader of the SL faction in the UHV, was given a life sentence for the crimes of aggravated terrorism, narcotics trafficking, and money laundering.

• On July 14, former Congresswoman Nancy Obregon was arrested and charged with terrorism. Obregon was detained with more than 20 other people, including two of her siblings, for alleged ties to the Shining Path and international drug rings. She is awaiting trial on charges of having planned cocaine shipments from the Huallaga Valley to Bolivia.

• On December 9, a joint military-police task force captured Alezander Fabian Huaman, alias "Hector," the last of Comrade Artemio's lieutenants still at large. Hector was charged with trying to reconstitute the SL in the UHV following Artemio's capture in February 2012.

• SL founder and leader Abimael Guzman and key accomplices remained in prison serving life sentences stemming from crimes committed in the 1980s and 1990s.

Political will to counter terrorism in Peru exists at all levels. Cooperation between specialized police and military counterterrorism units has improved, as evidenced by the operation that killed SL leaders Alipio and Gabriel. Relations between the military and the Peruvian National Police in general, however, were characterized by competition and mistrust. Interagency cooperation between senior-level policy planners and operators on the ground also remained a problem, as did the high rate of turnover among senior security leaders.

The government also continued to be hampered by resource constraints, corruption, and a lack of training. New recruits to the security forces were often sent to emergency zones with inadequate training, and were poorly equipped to fight battles in a dense jungle environment. Corruption was endemic within both the judiciary and security forces, although President Humala has declared eliminating corruption a pillar of his administration. Existing laws are adequate, but there was a lack of full and timely implementation.

Peru continued to participate in the U.S. Department of State's Antiterrorism Assistance (ATA) program. ATA delivered courses designed to manage critical incidents, increase awareness among law enforcement leadership of the potential threat from terrorism, and prevent terrorist misuse of the internet and digital media.

Countering the Financing of Terrorism: Peru is a member of the Financial Action Task Force on Money Laundering in South America (GAFISUD), a Financial Action Task Force-style regional body. In 2013, the Government of Peru made significant strides in the implementation of the National Plan to Combat Money Laundering and Terrorist Financing.

In 2013, the Financial Intelligence Unit (FIU) received new powers to freeze bank accounts in cases suspected of links with terrorist financing within 24 hours of a judge's request without the prerequisite of a criminal case being filed. This is an important advancement, especially with respect to enforcing UNSCR sanctions. The FIU has requested a complementary bill to provide more legal clarity in the implementation of this new power. The Executive announced that a bill had been submitted to Congress.

Additionally, in August, a new implementing regulation was passed that allows the Peruvian Customs and Tax Authority (SUNAT) to seize cash holdings above US $30,000 from individuals crossing the border. SUNAT is required to immediately inform the FIU of any seizure, and the owners of the seized currency have 72 hours to submit evidence to the FIU that the cash is of licit origin. Additionally, the FIU can now initiate investigations on suspicious electronic transactions over US $10,000.

For further information on money laundering and financial crimes, see the 2014 International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.

Countering Radicalization to Violence and Violent Extremism: The Government of Peru has publicly noted the importance of heavily investing in the VRAEM as a means of breaking the symbiotic relationship that has existed for years between the VRAEM's residents and SL. In 2013, the Government of Peru more than doubled the civilian budget for social and economic development. The increased funds are being used to pave roads, provide basic health and education services, and establish a greater state presence.

The official position of the National Penitentiary Institute is that prison is meant to rehabilitate and reintegrate prisoners, especially terrorists. A psychological evaluation is required of incarcerated terrorists before parole can be granted. Many observers have expressed concern that the program is ineffective and that many convicted terrorists are not rehabilitated, but instead choose to rejoin SL upon release.