Paraguay Background

In 2021, the American Bar Association Rule of Law Initiative (ABA ROLI) began working in Paraguay on a regional program, Countering the Financing of Terrorism in South America, with an aim to improve the capacity of the governments, financial sector, and civil society in the Tri-Border Area (TBA) of Paraguay, Argentina, and Brazil to effectively counter the financing of terrorism (CFT) and money laundering (ML) in the TBA of the region. Then in 2022, ABA ROLI began a complementary program, Raising Awareness on Countering the Financing of Terrorism in the Tri-Border Area, dedicated to raising public awareness on the risks associated with unknowing involvement in these crimes. Both programs are funded by the US Department of State Bureau of Counterterrorism.

The TBA of South America encompassing Paraguay, Argentina, and Brazil is considered a hub for criminal activities for terrorist financing networks. Their broad range of large-scale criminal schemes include trafficking of arms and drugs, smuggling of goods and money laundering. Terrorist groups engage in illicit activity in the TBA, carry out transactions with criminals from the region, and obtain funding from criminal organizations operating in the TBA. Despite expressing a political commitment to combat ML and CFT by adopting the United Nations Security Council Resolutions’ obligations and Financial Action Task Force recommendations, the governments in the TBA are still facing challenges in deterring crime and establishing state authority in the region.

The CFT program in South America works closely with central and local government agencies and financial and non-financial entities—such as Paraguay’s National Secretariat for the Prevention of Money or Asset Laundering or Asset Forfeiture (Spanish, La Secretaría de Prevención de Lavado de Dinero o Bienes – SEPRELAD) —on AML and CFT obligations.

ABA ROLI’s Raising Public Awareness program on AML, CFT, and Transnational Organized Crime program collaborates closely with the Financial Intelligence Units of Argentina, Brazil, and Paraguay—in addition to the communication departments of the criminal justice sector and financial institutions—to develop the technical aspects of communication campaigns and strategies.

Following the program’s launch in 2022, a comprehensive survey was conducted to gain insights into citizens’ perceptions of illicit activities within their communities. This initial step aimed to assess the region within the program’s framework. The survey engaged 902 participants from Ciudad del Este, Asunción, and Greater Asunción in Paraguay; as well as Foz de Iguaçu (Brazil) and Puerto Iguazú (Argentina)—including households, business owners, and regular shoppers in Ciudad del Este.

These results provide a valuable overview of the population’s understanding and attitude towards money laundering and financing of terrorism, which allows the program to better understand the current context and plan the implementation of its activities. For example, ABA ROLI created a public awareness campaign, “See the Signs” (see Spanish and Portuguese webpages), on money laundering and financing of terrorism. The campaign aims to illustrate how daily activities can inadvertently contribute to criminal endeavors, with the goal of reducing involuntary participation. Notably, the campaign is expected to reach over 10 million people.