Paraguay’s Ongoing Battle with Organized Crime

Overview

Paraguay is facing a daunting challenge related to organized crime, which has infiltrated various aspects of society, including politics, governance, economy, and social protection. The country’s weak institutional framework, corruption, and poor leadership have created an environment that makes it difficult to effectively address these issues.

Criminal Actors

Mafia-Style Groups

Clan Rotela: A dominant group controlling a significant portion of the drug trade in Paraguay.
Foreign Criminal Actors: Individuals from Brazil (PCC and CV), China, and Hezbollah-linked individuals also operate in the country, engaging in various illicit activities such as:
- Cocaine trafficking
- Arms smuggling
- Money laundering
- People trafficking

Leadership and Governance

State officials at all levels are actively involved in organized crime, including high-profile government officials who facilitate or directly participate in illicit operations.
Corruption is widespread, with scandals involving ministers, members of Congress, and even presidents.

Institutional Weaknesses

Paraguay has passed laws to tackle organized crime, but they are not effectively implemented due to institutional weaknesses and a corrupt judiciary. Law-enforcement agencies are compromised by corruption, compromising government strategies and security operations.

Prisons and Criminal Justice

Prisons in Paraguay are overcrowded and abusive, facilitating the development of crime organizations.
Efforts to improve transparency and accountability have been met with institutional weaknesses and a corrupt judiciary.

Economic and Financial Environment

Paraguay has one of the highest risks of money laundering and terrorist financing in the region. Legitimate businesses are used as fronts for money laundering and other illicit activities, despite positive steps taken to improve risk-management systems for banks and financial institutions.

Civil society organizations are active and have successfully campaigned for laws to tackle organized crime-related issues.
However, threats and attacks against journalists and media workers hinder press freedom, while the country still lacks efficient mechanisms to support victims of slavery.

Conclusion

Paraguay’s ongoing battle with organized crime is a complex issue that requires a comprehensive approach to address its root causes. While there have been some positive steps taken to improve transparency and accountability, much work remains to be done to tackle corruption and institutional weaknesses.