Financial Crimes in Paraguay: A Growing Concern
Paraguay, a country with a GDP of USD 809,553.46 million and a population of approximately 214,129,928, is struggling to combat various types of financial crimes that are affecting its economy.
Types of Financial Crimes in Paraguay
The following are some of the types of financial crimes that are prevalent in Paraguay:
- Human Trafficking: This involves coercion, deception, abduction or fraud for exploitation purposes, regardless of victim consent. (Assessment score: 5.92-0.16)
- Illicit Activity Involving Migrant Entry, Smuggling and Trafficking: This is also a concern in Paraguay, with an assessment score of 4.97
- Migrant Smuggling: 3.67
- Organised Crime Financing: 5.20
- Terrorism Financing: 2.75-0.42
- Other Financial Crimes: 3.67
Government Transparency and Accountability
Government transparency and accountability in Paraguay is assessed at 3.00-0.42, indicating that the government’s oversight mechanisms are not effective enough to prevent state collusion in illicit activities.
International Cooperation
International cooperation is also a concern in Paraguay, with an assessment score of 4.50-0.17, suggesting that Paraguay’s supranational structures and processes for interacting, making policies and implementing responses to organised crime are inadequate.
National Policies and Laws
National policies and laws have a score of 4.75-0.00, indicating a strong legal framework in place but no evidence of its effectiveness.
Judicial System and Detention
The judicial system and detention is assessed at 2.92-0.41, suggesting that the judiciary’s power to enforce judgments on OC-related cases is limited.
Law Enforcement
Law enforcement has a score of 4.17-0.08, indicating that the government’s ability to investigate, gather intelligence and protect against organised crime is effective but not optimal.
Territorial Integrity
Territorial integrity has a score of 5.00-0.00, suggesting that Paraguay can control its physical and cyber territory and infrastructure effectively against OC activities.
Anti-Money Laundering
Anti-money laundering is assessed at 4.08-0.00, indicating that Paraguay’s ability to implement measures to combat money laundering and other related threats to the integrity of its financial system is effective but not optimal.
Economic Regulatory Capacity
Economic regulatory capacity has a score of 3.58-0.17, suggesting that Paraguay can control and regulate transactions (national and international) for trade to thrive within the rule of law but with limitations.
Victim and Witness Support
Victim and witness support is assessed at 2.83-0.09, indicating that assistance provided to victims of various forms of organised crime is limited.
Non-State Actors
Non-state actors have a score of 2.75-0.42, suggesting that non-state actors are not allowed to engage in OC responses effectively and their roles as watchdogs to governments are also limited.
Challenges in Combating Financial Crimes
Paraguay’s ability to combat financial crimes is hampered by inadequate government transparency and accountability, international cooperation, national policies and laws, judicial system and detention, law enforcement, territorial integrity, anti-money laundering, economic regulatory capacity, and victim and witness support.