Peru was declared top dollar counterfeiting country in the world, WebProNews reported Thursday.

According to reports, a 13-year-old boy was arrested during a raid in Lima's outskirts. The Police colonel said that they were stunned by the skill of the boy in dollar counterfeiting.

Beloit Daily News reported that the boy even demonstrated his technique for the police after he was arrested because he had a sack of $700,000 fake US dollars and euros, which he had admittedly received from a co-conspirator.

The boy led the police to a squat house where he and many others perform their detailed work in counterfeiting currencies.

The U.S. Secret Service claimed that because of Peru's cheap criminal labor and less effective law enforcement, it has overtaken Columbia from the top spot of being a bogus bill producer.

It can be noted that the Service opened a permanent office in Lima last 2012, its fourth in Latina America because of which Peru's police have managed to arrest 50 people involved in dollar counterfeiting.

Unlike other counterfeiters, who use sophisticated inkjet printers, Peruvian fake money producers rely on skillful hands to finish the details on the bills.

"They use offset, huge machines that are used for regular printing of newspapers, or flyers," a Secret Service officer said. "Once a note is printed they will throw five people (on it) and do little things, little touches that add to the quality."

The Service estimated the amount of bogus money bills they have seized from Peruvian counterfeiters and it amounted to $103 million.

The fake US dollar bills are reportedly sent to the United States, but are also delivered to nearby countries such as Venezuela, Ecuador, and Argentina, Chief of the Peruvian Police's Fraud Division Col. Segundo Portocarrero said.

Portocarrero also mentioned that Peru only became attracted to US Dollar counterfeiting because of the constant interference of the US with Colombian politics through drug interdiction.

"[Counterfeiting] is more profitable than cocaine," one of the investigators on Pontocarrero's team said.

Meanwhile, investigators had stated that counterfeiters earn up to $20,000 in real money for every $100,000 fake money they produce for their expenses.