Financial Crime World

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Paraguay Sees Decline in Money Laundering Risk Index: A Promising Trend for the Region

Improved Anti-Money Laundering Efforts

In 2023, Paraguay’s money laundering and terrorist financing risk index dropped to 5.07, marking a significant decline from its previous year’s score of 6.4. This downward trend has been consistent since at least 2017, with the country steadily decreasing its risk level over the years.

What is the Basel AML Index?

The Basel AML Index is a composite indicator that measures the risk of money laundering and terrorist financing in different countries. It takes into account 16 distinct indicators related to corruption, financial standards, political disclosure, and rule of law to assess each country’s vulnerability to these illicit activities.

Sources of Data

The data used for the Basel AML Index is sourced from publicly available sources such as:

  • Financial Action Task Force (FATF)
  • Transparency International
  • World Bank
  • World Economic Forum

Paraguay’s Progress in Combating Money Laundering

Paraguay’s improvement in its risk index is a positive development not only for the country itself but also for the region. As one of the lowest-risk countries in Latin America, Paraguay sets an example for other nations to follow in their efforts to prevent and combat financial crimes.

What’s Next?

However, it remains essential for Paraguay to continue working on addressing the remaining vulnerabilities identified by the Basel AML Index. By maintaining its momentum and focusing on further improvements, the country can solidify its position as a leader in combating financial crimes in Latin America.

Key Takeaways

  • Paraguay’s money laundering risk index dropped to 5.07 in 2023, marking a significant decline from its previous year’s score of 6.4.
  • The country has consistently decreased its risk level since at least 2017.
  • Paraguay is now ranked among the lowest-risk countries in Latin America according to the Basel AML Index.
  • The country should continue working on addressing remaining vulnerabilities identified by the Basel AML Index.