Financial Crime World

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Paraguay’s Judicial System Fights Organized Crime, But Systemic Issues Persist

As Paraguay’s government continues to strengthen its judicial system to combat organized crime and economic crimes, systemic issues remain a major concern.

Challenges in Combating Organized Crime


Paraguay struggles to control areas with a strong criminal presence, including most of its physical borders with Brazil and areas controlled by the Paraguayan People’s Army. The country faces challenges in controlling the smuggling of gas and other goods across its border with Argentina, as well as drug trafficking flights coming from Bolivia.

Economic and Financial Environment


Paraguay’s economic regulatory environment is rife with organized crime, exemplified by instances of money laundering, state contractors accused of arms trafficking, and a lack of transparency in the state energy businesses. The increase in smuggled goods undermines formal economic sectors, as they pay taxes and customs duties.

Civil Society and Social Protection


Despite efforts to improve victim support and protection, several high-profile cases have demonstrated the government’s failure to protect victims and witnesses. New procedures have been implemented to screen children traveling alone for trafficking indicators, but many victims are forced to return home due to a lack of sufficient shelters.

  • The quality of support for victims, particularly in rural areas, remains inadequate due to insufficient financial and human resources.
  • The government’s approach to preventing organized crime has been unsuccessful, with a focus mainly on anti-drug operations.

Journalists and Human Rights Defenders


Journalists and media workers in Paraguay continue to face threats and attacks, with some journalists killed as a result. Public servants have perpetrated more than half of the attacks on journalists, indicating a deterioration of freedom of expression in recent years.

  • Media outlets remain concentrated in the hands of a few individuals, and community radio stations struggle to survive.
  • Human rights defenders in Paraguay have faced an increase in stigmatization and judicial persecution.

Despite international cooperation agreements expected to enhance the government’s capacity to fight crime, systemic issues persist. Corruption within the penitentiary system is widespread, with officials colluding with criminal leaders to provide privileges or help them escape. Paraguay’s law enforcement agencies have been accused of corruption and involvement in criminal activities, including drug trafficking and smuggling.

Constitutional guarantees of due process are poorly upheld, and cases such as killings by policemen have been covered up by the judiciary. The country’s struggle to control organized crime is further complicated by its national plan for cyber-security and a computer emergency response team to respond to cyber incidents, which has not yet resulted in significant security improvements.