Financial Crime World

Paraguay’s Assessment in the Global Organized Crime Index (GOCI)

Resilience

Challenges in Leadership and Governance

  • Paraguay’s political leadership and governance remain major concerns, with actors from both main parties accused of forming an “impunity pact” to avoid investigation into corruption allegations.
  • The government has taken steps to improve transparency and accountability, including creating a transparency website and new Public Contracting Law.

Criminal Justice and Security

Systemic Issues in the Judicial System

  • Corruption and politicization are widespread within the judicial system, undermining public confidence and contributing to impunity for high-ranking officials.
  • Efforts to strengthen the judicial system specialized in organized crime and economic crimes have been made, but systemic issues persist.
  • The penitentiary system faces numerous challenges, including overpopulation, corruption, and the development of criminal groups inside prisons.

Economic and Financial Environment

High-Risk Country for Money Laundering and Terrorist Financing

  • Paraguay has a long-standing history of being a high-risk country for money laundering and terrorist financing.
  • Criminals are increasingly using Paraguay to launder illicit money through real estate, cattle ranches, and other assets.
  • The Tri-Border Area shared with Brazil and Argentina is a crucial hub for money laundering and a source of financing for criminal and terrorist networks.

Civil Society and Social Protection

Inadequate Support for Victims

  • Despite efforts to improve victim support and protection, several high-profile cases have demonstrated the government’s failure to protect victims and witnesses.
  • The quality of support for victims remains inadequate due to insufficient financial and human resources.

Conclusion

Paraguay faces significant challenges in addressing organized crime, including corruption, weak governance, and a lack of effective prevention efforts. Addressing these issues will be crucial for improving the country’s resilience and security.