On Oct. 10, the US Justice Department announced the seizure of more than $31 million in funds allegedly "connected to an international money laundering scheme run by a drug trafficking organization operated by members of the Sánchez-Paredes family," a Peruvian clan deemed by US law enforcement to be a drug trafficking organization (DTO). The funds were held in nine US banks, including Bank of America, Wells Fargo, and JPMorgan Chase, none of which have been charged with any wrongdoing. Additional moneys in three Peruvian bank accounts have also been frozen. The US Attorney's Office for the Southern District of New York found that the family was using its gold mining interests as a front for cocaine trafficking:

Colombia's President Juan Manuel Santos on Oct. 12—recognized in Latin America as Día de La Raza—issued an official apology to indigenous communities in the Amazon for deaths and destruction caused by the rubber boom beginning a century ago. From 1912 to 1929 the Peruvian firm Casa Arana, led by rubber baron Julio César Arana with British backing, exploited rubber near La Chorrera in what is now Colombia's Amazonas department. Up 100,000 people were killed and communities devastated in the operations, with indigenous rainforest dwellers forced into slave labor and slain or displaced if they resisted. The situation was brought to the world's attention following an investigation by British diplomat Roger Casement, who had previously documented similar atrocities in the Belgian Congo.

US Defense Secretary Leon Panetta, meeting with President Ollanta Humala in Lima Oct. 6, secured an agreement to re-negotiate Washington's 60-year-old defense cooperation pact with Peru. Panetta said updating the 1952 accord would "improve our ability to conduct joint activities, to do training and other exchanges. Ultimately that will help us deal with shared security challenges in the future." On the eve of the visit, the Department of Defense issued a press release broadly outlining new measures called for in the 2012 Western Hemisphere Defense Policy Statement—including plans to invite Peru to participate in a US program of Ministry of Defense Advisers (MODA), currently being pioneered in Afghanistan. "If Peru accepts, MODA will embed a technical expert in the Ministry of Defense for up to two years," the DoD statement said. "The expert will provide consistent technical advice on issues like budgeting, acquisition, procurement, planning and strategic planning." (Reuters, Oct. 7; Peruvian Times, Oct. 6; DoD press release, Oct. 5)

In an open letter Sept. 20, Human Rights Watch urged Peru's President Ollanta Humala to take steps to prevent the unlawful killing of protesters, noting growing incidents of deadly force. Local media report that at least 19 have died in protests over mineral projects since Humala took office last year. On the same day HRW issued the letter, National Police killed a protester at Barrick Gold's Pierina mine in Áncash region. The confrontation came as residents from Mareniyoc and other local villages pushed their way onto the company's property, prompting police guarding the entrance to open fire. Barrick temporarily suspend production at the mine following the clash, in which four campesinos were also injured.

On Oct. 1, the indigenous village of San Juan Bautista de Cañaris in Peru's northern region of Lambayeque announced the results of a consulta, or community consultation, on the proposed Cañariaco Norte open-pit copper mine, saying 1,896 members of the pueblo of some 4,000 voted by 95% to reject it. The results were immediately forwarded to the Energy and Mines Ministry (MINEM). Vancouver-based Candente Copper, which hopes to develop the project, issued a statement rejecting the consulta, saying the community had already approved the project in a "general assembly" held on July 8. The statement noted that the "general assembly" has been called for judicial authorities after Cristobal Barrios, the president of the Cañaris Campesino Community, had refused to convene it. The statement said the "general assembly" had been confirmed as "legally binding" by MINEM, and charged that Barrios had called the consulta "unilaterally" in violation of Peru's General Law of Campesino Communities (PDF). Cañaris community representatives, in turn, noted that more residents participated in the consulta than in the "general assembly," and insisted that the new vote represents the will of the community. (Marketwire Canada, Bloomberg, Oct. 2; El Comercio via Gato Encerrado, Diario Correo, Oct. 1)

Peru's Supreme Court on Sept. 26 ruled in favor of the Shipibo and Ese'Eja indigenous community of Tres Islas in the southern Amazon basin region of Madre de Dios, finding that the rainforest dwellers have the right to block a road that illegal miners and timber cutters use to enter their territory. Indigenous organizations hailed the ruling as an important precedent for peoples trying to halt mining, logging or oil drilling on their lands. "We think this will serve as an example for other indigenous groups to take their cases to the top court," said Jaime Tapullima Pashanase, president of the Ethnic Council of Kechwa Peoples of the Amazon (CEPKA). Added Julio Ibañez Moreno, a lawyer for Peru's trans-Amazonian alliance AIDESEP: "I consider this ruling very important for indigenous communities. This is an advance in terms of the rights they have been demanding."

Peru's coca crop increased by some 5.2% in 2011, according to the UN Office on Drugs and Crime (UNODC)—marking the sixth consecutive year that cultivation increased in the Andean nation. Some 64,400 hectares of coca cultivation were detected in satellite images, compared to the estimated 61,200 hectares cultivated in 2010. While the Upper Huallaga Valley and Apurímac-Ene River Valley (VRAE) continued to account for some 50% of Peru's illegal coca crop, the area under cultivation in these zones increased by only 1%. However, cultivation was up by over 40% in northern Peru, with the provinces of Putumayo and Bajo Amazonas (both in Loreto region) especially named—areas newly opened to cultivation, where the government carries out no eradication campaigns. "Drug traffickers are becoming more efficient," said Flavio Mirella, chief of UNODC's Peruvian office, during a presentation of the report in Lima. "Traffickers need less coca leaf to produce more cocaine. Routes of supply are diversifying and producing areas are getting closer to certain routes of exit" toward Bolivia and Brazil, he said. (Bloomberg, UNODC press release, Sept. 27; BBC News, Sept. 26*)

Peru's National Police Anti-Drug Directorate (DIRANDRO) claimed a blow against the resurgent Sendero Luminoso guerillas after intercepting a plane loaded with 350 kilograms (770 pounds) of cocaine in plastic-wrapped bricks when it landed at a clandestine airstrip in a jungle area of Oxapampa province, Pasco region, Sept. 18. The crew of the Bolivian-registered Cessna put up armed resistance before fleeing into the jungle. A manhunt to apprehend them is now underway. DIRANDRO said the cocaine  originated in the Apurímac-Ene-Mantaro River Valley (VRAEM), a jungle zone just south of Oxapampa where the "narcosenderista" brothers Víctor, Jorge and Martín Quispe Palomino—known by the respective code-names  "José," "'Raúl" and "Gabriel"—are said to control coca production. The cocaine was believed to have been brought to Oxapampa by back-pack along jungle trails, and was to be flown to Bolivia for re-export to Brazil in an operation overseen by wanted Bolivian kingpin William Rosales. (RIA-Novosti, La Republica, InfoSur Hoy, Peruvian Times, Reuters, Sept. 18)