Financial Crime World

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Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations in Paraguay

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Customer Due Diligence (CDD)

In Paraguay, Customer Due Diligence (CDD) is a mandatory requirement. It’s not a one-time process but rather required in multiple instances.

  • CDD involves verifying the identity of customers and assessing their risk profile.
  • This helps to prevent money laundering and other financial crimes.

Identity Verification

To verify customer identities, the following documents are considered as proof of identity:

  • ID Card
  • Passport
  • Driving License

Similarly, the following documents are considered as proof of address:

  • Utility bills
  • Bank statements
  • Government-issued documents

Timing of Verification

Identity verification should be applied in the following situations:

  • Onboarding a new customer
  • Handling transaction data above certain monetary thresholds
  • High-risk situations where an individual might represent above normal exposure of money laundering threats.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD) Measures

In Paraguay, there are no explicit regulations for PEPs. However, clients can utilize EDD measures for high-risk customers. Shufti Pro provides AML Screening services to help with this process.

Reliance on External Services

Clients can seek third-party services for fulfilling AML/KYC obligations. However, they remain liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.

Record Retention

Paraguay’s regulations require retaining data for not less than 5 years as part of AML and KYC obligations. If the information is processed, collected, or managed by a third-party, the client is liable to collect all necessary due diligence data without undue delay.