The management of waste electrical and electronic equipment (WEEE) leads to an environmental as well as to a resource profusion problem in Peru. Thus, the issues are lack of financial support, limited economic capacity and lack of commitment to complex recycling regulations, and the release of hazardous substances from electrical and electronic equipment (EEEs). The environment and people involved have to deal with the exposure of POPs, such as Brominated Flame Retardants (PBDEs), and heavy metals such as mercury and copper. WEEE requires an effective regulatory framework for the management of recycling facilities, which challenges the Peruvian recycling system. Particularly, the Basel and Stockholm Conventions provide regulations and guidelines at the international level. Among Latin American countries, the Peruvian government is one of the few, which have introduced comprehensive legislative measures for the management of WEEE. However, the progress of formalization the WEEE system is limited to a certain extent in Lima. Therefore, the handling, treatment and disposal of LCD monitors are analysed by the Material Flow Analysis (MFA), showing strengths and weaknesses of the Peruvian WEEE management framework. The MFA also demonstrates the environmental impact assessment of the monitors by the informal sector. The evaluation of MFA with the provision of three different scenarios provides the following solutions for the problem. Firstly, the enhancement of awareness-raising campaigns has to be supported, secondly, the population needs to be attracted to the collection and recycling process by the donations of lottery tickets, thirdly, the inclusion of the informal sector is necessary to improve the formalization of the system, fourthly, a reuse culture as a new economic niche should be implemented to encourage people involved in the informal sector and ultimately, product based recycling fees should be implemented for additional financial support for the management of WEEE.