ABA ROLI Works Toward Building Stronger Institutions in Paraguay related to Anti-Money Laundering and Countering the Financing of Terrorism

The American Bar Association Rule of Law Initiative (ABA ROLI), in collaboration with implementing partners K2 Integrity and GovRisk, worked with the Paraguayan Secretariat for the Prevention of Money Laundering and Asset Forfeiture (SEPRELAD) to organize a series of impactful training sessions for anti-money laundering (AML) and countering the financing of terrorism (CFT) supervisors from several public institutions. With 58 participants from various institutions, these sessions took place from March 7 to 10, 2023 and occurred as part of the ABA ROLI’s Countering the Financing of Terrorism in South America Program. The sessions’ primary objective was to strengthen the supervisory government institutions responsible for overseeing obligated entities in their anti-money laundering efforts. Obligated entities are individuals or entities, such as financial institutions, which are legally required to comply with AML regulations and actively participate in efforts to prevent money laundering and terrorism financing.  

The workshop critically focused on, among other topics, the adoption of a risk-based approach to supervision. The event aimed at enhancing the supervision of financial and non-financial institutions in combating money laundering and terrorism financing. Participants engaged in in-depth discussions on topics such as terrorism risk analysis, targeted financial sanctions enforcement, and effective supervisory strategies.

Renowned international consultants Alejandro Montesdeoca and Farida Paredes shared their expertise through informative sessions. Montesdeoca, who previously contributed to the Financial Action Task Force on Money Laundering (FATF) in Latin America, and Paredes, the current head of the Financial Intelligence Unit of Peru, provided valuable insights and guidance.

Representatives from SEPRELAD, the Supreme Court of Justice, the Superintendency of Banks, the Superintendency of Insurance, the National Institute of Cooperatives, the National Gambling Commission, and the Electoral Justice actively participated in the training sessions. They had the unique opportunity to learn from the expertise of these consultants.

SEPRELAD plays a vital role in overseeing entities such as real estate agencies, automotive businesses, and non-profit organizations. Their responsibility lies in ensuring compliance with the legal provisions for anti-money laundering and countering the financing of terrorism.

José Canesa, a senior inspector in the Supervision and Regulations Directorate of SEPRELAD, acknowledged the immense value of international supervision examples. He emphasized the potential benefits for Paraguay in implementing computerized monitoring tools and robust control mechanisms already employed in other countries. Canesa conducts inspections nationwide, with a particular focus on high-risk border departments such as Alto Paraná (which shares a border with Argentina and Brazil), Itapúa, and Canindeyú. The insights gained from the training have provided valuable perspectives on areas for improvement to enhance the efficiency of their supervisory efforts, according to Canesa.

“...Knowing and being aware of the computer tools used in other countries that we could implement in our own was phenomenal.”

José Canesa
Senior Inspector, Supervision and Regulations Directorate of SEPRELAD

The training program also included presentations from each Paraguayan supervisory entity, during which they shared their respective supervision procedures, tools, and control mechanisms. Canesa highlighted the enriching experience of listening to the experiences of other institutions and recognizing their strengths and weaknesses. This allowed for the identification of areas for improvement and the adoption of effective approaches to enhance their work.

Canesa stressed the importance of implementing the lessons learned in the medium and long term to strengthen Paraguay's system for preventing money laundering and countering the financing of terrorism. He expressed enthusiasm about the prospect of adopting computer tools utilized in other countries, stating that "knowing and being aware of the computer tools used in other countries that we could implement in our own was phenomenal."