Financial Crime World

Financial Crimes Regulations in Paraguay Under Scrutiny

Paraguay’s regulatory framework for combating financial crimes has come under evaluation by a team of experts from the Financial Action Task Force (FATF). The assessment, conducted using the 2012 FATF Recommendations and the 2013 Methodology, has highlighted areas where improvement is needed.

Inconsistent Compliance with International Standards

While Paraguay has made significant progress in strengthening its anti-money laundering (AML) and counter-terrorist financing (CTF) measures, there are still weaknesses that need to be addressed. The country’s compliance with international standards is inconsistent in certain areas, according to the evaluation.

Weaknesses in AML/CTF Regulations

  • Inadequate implementation: Certain institutions, such as banks and other financial entities, have not fully implemented the required measures to prevent money laundering and terrorist financing.
  • Good understanding of risks: However, the Paraguayan authorities have demonstrated a good understanding of the risks associated with financial crimes.

Need for Improvement in Customer Due Diligence

The report highlights the need for Paraguay to improve its customer due diligence procedures, particularly in the areas of:

  • Politically exposed persons (PEPs): The country needs to enhance its ability to identify and manage PEPs.
  • Beneficial ownership: Paraguay must also improve its capacity to determine the beneficial owners of entities.

Enhancing Capacity for Investigation and Prosecution

The report emphasizes the need for Paraguay to enhance its capacity to investigate and prosecute complex financial crimes. This includes:

  • Investigative capabilities: The country needs to strengthen its investigative capabilities to effectively tackle financial crimes.
  • Prosecutorial expertise: Additionally, Paraguay must ensure that its prosecutors have the necessary expertise to handle complex financial crime cases.

Key Findings and Priority Actions

The FATF has reviewed and endorsed the findings of this evaluation, which are outlined in the report’s Executive Summary. The report identifies key findings and priority actions that Paraguay must take to improve its regulatory framework for combating financial crimes.