Financial Crime World

CYBERSECURITY THREATS TO FINANCIAL CRIMES IN PARAGUAY ON THE RISE

Paraguay has climbed to fourth place among 193 United Nations member countries in the Global Organized Crime Index 2023, with a significant increase in crime rate reaching 7.52 points compared to 6.70 recorded in 2021.

Transforming from Transit Country to Emerging Source of Cocaine

The report highlights that Paraguay has transformed from a transit country to an emerging source of cocaine, with an estimated flow of almost 200 tons per year mainly from Bolivia and Peru. Drug trafficking evades land controls by using air and sea routes, involving various criminals including politicians and agricultural workers.

Key Trafficking Points in South America

  • Paraguay is a key trafficking point to Brazil, where foreign criminal groups are expanding their influence in the marijuana trade.
  • The country also functions as a distribution center for synthetic drugs destined for Argentina and Brazil.

Convergence of Criminal Actors

A researcher at the National University of Pilar and INECIP-Paraguay, Juan Martens, said that the convergence of criminal actors such as the Brazilian First Capital Command, Italian mafia, Colombian and Mexican groups put Paraguay on the map as a prominent distribution center.

Organized Crime Advancements

The country’s Interior Minister Enrique Riera stated that organized crime has advanced technology, unlimited financial resources, and significant operational capabilities. The flow of cocaine comes from northern countries and enters through 1,500 clandestine airstrips mainly located in Chaco, Canindeyú, Itapúa, and Misiones.

Regional Challenges

  • Paraguay serves as a major destination for counterfeit products in South America.
  • The country is also a significant source of illegal tobacco trade, particularly in the Tri-Border area with Brazil and Argentina.
  • Paraguay hosts Brazilian criminal gang operations and serves as an arms trafficking hub.

Combating Threats

To combat these threats, the government is looking into purchasing a shared radar system to improve airspace surveillance and protection. Authorities have also strengthened controls at ports and reestablished canine services.

Collaborative Response

A collaborative response from countries across the globe is necessary to tackle this transnational challenge. The U.S. Agency for International Development (USAID) has provided technical support to Paraguayan authorities, allowing them to assess violence and insecurity levels and the functioning of institutions in charge of dealing with these problems.

Effective Cooperation

As Martens said, “Organized crime is a challenge that crosses borders. It requires effective cooperation between countries from its beginnings in Bolivia, through Paraguay and Argentina, to possible destinations such as Europe or the United States.” A collaborative response at the global level is necessary to tackle this threat effectively.