Organized Crime and Corruption in Paraguay: Key Concerns

Paraguay is facing significant challenges related to organized crime, corruption, and governance. This report highlights the main concerns and issues that need attention to effectively address these problems.

Criminal Actors

• Mafia-style groups: Several mafia-style groups operate within Paraguay’s prison system.
• Foreign actors: Groups like the PCC and CV from Brazil have a significant presence in the country’s criminal markets.

Corruption

• Widespread corruption: High-level officials are involved in all aspects of the functioning of criminal markets, including contraband and drug trafficking.
• Impunity for state actors: The judiciary lacks resources and coordination among its departments, allowing state actors to operate with impunity.
• Compromised law-enforcement agencies: Corruption within law-enforcement agencies undermines efforts to combat organized crime.

Poor Governance

• Scandals involving high-level officials: Executive and Treasury officials have been involved in scandals, illustrating the need for improved governance.
• Lack of accountability: Political leadership and governance issues contribute to a culture of impunity.

Money Laundering

• High risk of money laundering: Paraguay is assessed as having one of the highest risks of money laundering and terrorist financing in the region.
• Use of legitimate businesses: Criminal operators use legitimate businesses as fronts for money laundering, making it difficult to track illicit activities.

Civil Society

• Active organizations: Civil society organizations are active in Paraguay, but face challenges such as harassment and attacks.
• Obstacles to press freedom: The environment is not conducive to a free press, with civil society organizations facing obstacles in their efforts to expose wrongdoing.