Consequences of Financial Crimes in Paraguay Intensify

Asunción, Paraguay has climbed to fourth place in the Global Organized Crime Index 2023, a biannual study by the Swiss-based nongovernmental organization Global Initiative Against Transnational Organized Crime. The data reveals an increase in crime rate in Paraguay, reaching 7.52 points compared to the 6.70 recorded in 2021.

Shift from Transit Country to Emerging Source of Cocaine

The report highlights that Paraguay has shifted from being a transit country to an emerging source of cocaine, with an estimated flow of almost 200 tons per year, mainly from Bolivia and Peru. The increase in seizures of cocaine paste indicates more processing in the country.

• Cocaine Trafficking Methods: Cocaine trafficking evades land controls by using air and sea routes, with various criminals, including politicians and agricultural workers, participating in the trade.
• Bribery and Violence: Elites can be bribed to protect drug traffickers, leading to a significant increase in violence and homicides in Paraguay.

Paraguay’s Role in Regional Crime

The country is also a key trafficking point for cannabis destined for Brazil, according to the index. The influence of foreign criminal groups in the marijuana trade is expanding, with Paraguay serving as a distribution center for synthetic drugs headed for Argentina and Brazil.

• Arms Trafficking: Paraguay is a regional epicenter for arms trafficking and hosts Brazilian gang operations.
• Counterfeit Products: The country serves as a major destination for counterfeit products in South America and is a significant source of illegal tobacco trade, particularly in the Tri-Border area with Brazil and Argentina.

Global Response Needed

“The convergence of criminal actors such as the PCC [Brazil’s First Capital Command], the ‘Ndrangheta [Calabrian mafia], as well as Colombian and Mexican criminal groups, put Paraguay on the map as a prominent distribution center,” Juan Martens, researcher at the National University of Pilar and INECIP-Paraguay, said.

Combating Organized Crime in Paraguay

The flow of cocaine into Paraguay is significant, with Interior Minister Enrique Riera stating that organized crime has advanced technology, unlimited financial resources, and operational capabilities. The flow comes from northern countries and enters through 1,500 clandestine airstrips, mainly in Chaco, Canindeyú, Itapúa, and Misiones.

• Seizures and Intelligence: The U.S., Colombia, and Brazil have identified the Paraguayan Chaco as a crucial point in Latin American drug trafficking. Criminal organizations store cocaine in Paraguay before transporting it by road to Paraguayan ports.
• Global Response: Experts believe that a collaborative response at the global level is necessary due to the transnational nature of organized crime.