Financial Crime World

Paraguay ECT Final Report

Executive Summary

The Economic Crimes Team (ECT) was established in Paraguay to support the government’s efforts to combat money laundering and terrorist financing. This report provides an overview of the team’s objectives, workplan, evaluation findings, and conclusions.

I. Introduction

The ECT was established in Paraguay to address the country’s weaknesses in combating money laundering and terrorist financing. The team worked with various government agencies, including SEPRELAD, to implement a comprehensive program aimed at strengthening the AML/CFT system.

II. Project Objectives and Workplan

The ECT’s workplan outlined four project objectives:

  • Increasing the effectiveness of SEPRELAD’s analysis and reporting
  • Improving AML/CFT case development and creating a financial crimes working group
  • Developing an asset forfeiture and recovery program
  • Improving the overall AML/CFT system in Paraguay

The workplan proposed capacity-building activities designed to support the government of Paraguay to address these challenges and bring Paraguay into greater compliance with the FATF recommendations.

III. Evaluation Findings and Conclusions

This section discusses the evaluation’s findings and conclusions for each of the ECT’s three evaluation questions:

EQ1: To what extent has the ECT achieved the four project objectives as defined in the Paraguay yearly workplans? In which areas was the ECT the most successful?

  • The ECT achieved the greatest degree of success with project objective 1 (increasing the effectiveness of SEPRELAD’s analysis and reporting), based on a consensus view among the counterparts, further supported by Advisors’ own assessments, that SEPRELAD’s analytical and reporting capacity significantly improved.
  • This was due to the ECT’s efforts in providing training and technical assistance to SEPRELAD staff.

EQ2: Which of the ECT’s project objectives in Paraguay have been sustained over time and why?

  • The evaluation found that project objective 1 (increasing the effectiveness of SEPRELAD’s analysis and reporting) has been sustained over time due to ongoing support from the ECT and other government agencies.
  • This is because the ECT continues to provide technical assistance and training to SEPRELAD staff, ensuring that their analytical and reporting capacity remains strong.

EQ3: Which of the ECT’s program objectives were not achieved and why?

  • The evaluation found that project objective 4 (improving the overall AML/CFT system in Paraguay) was not fully achieved due to limited resources and capacity within government agencies.
  • This is because the ECT’s efforts were focused on providing technical assistance and training, but the government agencies lacked the necessary resources and capacity to implement the recommendations.

IV. Conclusion

In conclusion, the ECT made significant progress in achieving its project objectives, particularly with regards to increasing the effectiveness of SEPRELAD’s analysis and reporting. While some areas for improvement remain, the evaluation highlights the importance of sustained support from international partners and government agencies to maintain progress in combating money laundering and terrorist financing.

Recommendations

Based on the findings and conclusions of this report, the following recommendations are made:

  • Continue to provide technical assistance and training to SEPRELAD staff to ensure that their analytical and reporting capacity remains strong.
  • Provide ongoing support to government agencies to help them build the necessary resources and capacity to implement AML/CFT recommendations.
  • Develop a comprehensive plan to address the remaining challenges in combating money laundering and terrorist financing.

References

  • FATF. (2019). The FATF Recommendations.
  • ECT. (2020). Paraguay Yearly Workplan.