The Financial Action Task Force of Latin America held its fourth simulation exercise in Lima, Peru to test implementation of targeted financial sanctions arising from potential matches against United Nations Security Council sanctions lists on terrorist financing and the proliferation of weapons of mass destruction, in line with Financial Action Task Force Recommendations 6 and 7. The drill for the first time included a fictitious match linked to the UN Security Council Resolution 1718 (2006) sanctions list applicable to the Democratic People's Republic of Korea. Conducted without prior notice, the exercise started from a fictional freezing of funds or assets and mapped the roles of key Peruvian AML/CFT/CPF authorities, including the Financial Intelligence Unit, the Superintendency of Banking, Insurance and Private Pension Fund Administrators, SUNARP and the judiciary, alongside obliged entities such as banks, virtual asset service providers, real estate firms and vehicle dealers. GAFILAT reported that the simulation identified Peruvian good practices and highlighted strengths and areas for improvement to strengthen preparedness for a real case.