Paraguay’s Struggle with Corruption and Organized Crime

Key Findings

The following findings highlight the significant challenges Paraguay faces in addressing corruption and organized crime.

• Corruption is widespread: Corruption is a pervasive issue in Paraguay, involving state officials at all levels.
• Organized crime groups are active: Various mafia-style groups operate in Paraguay, including foreign actors like the PCC and CV from Brazil, Chinese mafia-like organizations, and Hezbollah-linked actors.
• Lack of effective implementation of anti-organized crime laws: Despite having extradition treaties with almost every country in the Americas, Paraguay has failed to comply with a high-profile extradition request against a former president.
• Weak institutions and corruption within law-enforcement agencies: Corruption within the police, military, and penitentiary system compromises the effectiveness of government strategies and security operations.
• Extensive and porous borders facilitate criminal activities: The country’s extensive and porous borders are used by foreign and national criminal organizations to transit in and out of Paraguay.
• Money laundering and terrorist financing risks are high: Paraguay is assessed as having one of the highest risks of money laundering and terrorist financing in the region.
• Deep-seated corruption hinders economic regulatory capacity: Corruption within agencies responsible for economic regulatory measures hampers improvements in Paraguay’s economic regulatory capacity.

Recommendations

To address these challenges, we recommend the following:

1. Implement anti-organized crime laws effectively: Addressing corruption within law-enforcement agencies is crucial to enforcing anti-organized crime laws.
2. Enhance international cooperation: Strengthening partnerships with other countries can help combat organized crime and money laundering more effectively.
3. Improve border control and security: Enhancing the country’s borders will prevent criminal organizations from transiting in and out of Paraguay.
4. Strengthen economic regulatory capacity: Addressing corruption within agencies responsible for economic regulation is essential to improving Paraguay’s economic development.
5. Support civil society organizations: Encouraging transparency, accountability, and press freedom can help promote a more stable and secure environment.

By implementing these recommendations, Paraguay can better address its challenges related to organized crime, corruption, and money laundering, ultimately improving the country’s stability, security, and economic development.