|1. Legal System and Related Institutional Measures|
|Criminalization of Money Laundering|
R.1 – PC
R.2 – PC
Amend the legislation to include all the categories of serious offenses listed by the FATF as predicate offenses of ML.
Amend the CC to (1) include all the ML conducts in line with the Palermo Convention; (2) allow proving that property is the proceeds of crime without the need for a conviction of a predicate offence; (3) criminalize “conspiracy”, “facilitation” and “counseling” to commit ML; (4) re-categorize the offence of ML as a crime (as opposed to a misdemeanor); and (5) raise the range of sanctions to make them effective, proportional and dissuasive, relative to other serious offences in the CC.
|Criminalization of Terrorist|
SR.II – NC
The offence of FT should be criminalized in keeping with the requirements of the offence as set out in the SFT Convention.
|Confiscation, freezing, and seizing of proceeds of crime|
R.3 – PC
Amend the CC to: (1) allow for the forfeiture of property of corresponding value; and (2) allow for initial applications to seize property subject to forfeiture to be made ex-parte or without prior notice.
Allocate more resources to improving the conditions of the registries of property. Speed up the informatization of the data bases, improve the facilities where records are held, reduce the costs to registration, increase public awareness on the benefits of registration, and amend appropriate laws to sanction failures to register relevant acts and information.
|Freezing of funds used for terrorist financing|
SR.III – NC
Put in place a system for freezing of terrorist assets ex parte and without delay, including (1) a mechanism for reviewing and giving effect to, if appropriate, the actions initiated under freezing mechanisms of other countries; recognizing and reviewing terrorist lists of other countries and giving effect to those lists if appropriate; and (2) Clear guidance on implementation to financial institutions and other persons or entities that may be holding targeted funds or other assets concerning their obligations in taking action under freezing mechanisms.
Put in place procedures to examine and give effect to the actions initiated under the freezing mechanisms of other jurisdictions.
|The Financial Intelligence Unit and its functions|
R.26 – PC
Strengthen financial analysis capacity of UAF staff and the processing of STRs.
Provide the UAF has adequate resources and autonomy to allow its staff to focus on their core mission;
|Law enforcement, prosecution and other competent authorities|
R.27 – NC
R.28 – C
Develop a training program of training focused on operative investigations and the coordination of the law enforcement agencies.
Develop a program at the national level for specialized training for judges, focusing on the interpretation of evidence in ML and FT cases, and on the autonomy of these offences.
|Cross Border Declaration or disclosure|
SR IX – NC
Take measures to apply an effective control on the cross-border cash transport. SEPRELAD should coordinate with customs and police authorities for an effective implementation of the measures of its Resolution No. 61.
|2. Preventive Measures: Financial Institutions|
|Risk of money laundering or terrorist financing|
|Customer due diligence, including enhanced or reduced measures|
R.5 – NC
R.6 – NC
R.7 – NC
R.8 – PC
Establish, through law, a prohibition for financial institutions (FI) to opening anonymous accounts or accounts in fictitious names; and an obligation to identify and undertake customer due diligence (CDD) measures, including for the beneficial owner when establishing the business relationship.
Establish through law, regulation, or other enforceable means (OEM) clear requirements for FI to conduct adequate and enhanced CDD measures on legal arrangements; relationships with money remitters; and higher risk categories of customer, business relationships, or transactions.
Establish requirements for FI to: reject opening an account when unable to complete CDD and to consider making a STR; consider terminating the relationship and making a STR when the relationship has commenced and the FI is unable to complete the CDD; and 6) maintain up-to-date customer records.
Establish requirements for insurance companies under the SIS to apply CDD measures on existing customers on the basis of materiality and risk and to conduct due diligence on such relationships at appropriate times.
Establish through law, regulation, or OEM clear requirements for FI to have appropriate risk management systems to deal with PEPs in line with R.6.
Establish clear requirements for FI to deal with correspondent relationships.
Establish clear requirements for FI under the INCOOP to deal with non face-to-face transactions and new technologies.
|Third parties and introduced business|
R.9 – N/A
|Financial institution secrecy or confidentiality|
R.4 – PC
Establish formal mechanisms and/or effective measures for competent authorities to share information, without the need of a court order.
|Record keeping and wire transfer rules|
R.10 – PC
SR.VII – NC
Establish a legal obligation for recordkeeping for FI to maintain and retain all customer records and business correspondence for at least five years after the business relationship is ended, or longer period, if requested by the competent authorities, and to make the data available to competent authorities.
Modify existing resolution for FI under the SIB in line with SR.VII and monitor compliance.
|Monitoring of transactions and relationships|
R.11 – NC
R.21 – NC
Establish clear requirements for FI to comply with R.11.
Establish clear requirements for FI to comply with R.21.
|Suspicious transaction reports and other reporting|
R.13 – PC
R.14 – C
R.19 – NC
R.25 – NC
SR.IV – NC
Define the term “financial institutions” and expand the list of FI in line with the Assessment Methodology.
Modify the existing legal obligation to establish the requirement for financial institutions to report directly to the SEPRELAD.
Consider implementing a currency reporting requirement in line with R.19.
Establish a legal obligation for FI to report to the FIU transactions suspected or linked to terrorism in line with SR. IV.
Provide guidance to FI to improve their AML/CFT procedures.
Establish communication standards and a feedback mechanism.
|Internal controls, compliance, audit and foreign branches|
R.15 – PC
R. 22 – NC
Establish clear requirements for FI, including for money remitters, to develop and maintain adequate programs against ML and FT, including internal controls, screening procedures, compliance officers, independent audit, and training in line with R.15.
Establish clear requirements for branches and subsidiaries of FI to pay particular attention to transactions from some countries in line with R.22.
R.18 – LC
Clearly prohibit the establishment of shell banks in Paraguay.
|Supervisory and oversight system–competent authorities and SROs Role, functions, duties and powers (including sanctions)|
R.17 – NC
R.23 – NC
R.29 – NC
Ensure that effective, proportionate and dissuasive administrative sanctions are available to the competent supervisory authorities in line with R.17.
Designate a competent authority to regulate and supervise money remitters on AML/CFT matters.
Establish explicit and clear measures to prevent criminals or their associates from owning or controlling a FI.
Establish explicit fit and proper measures for directors and senior management of FI.
Establish a direct obligation that empowers the SIB, the SIS, the CNV, and the INCOOP to supervise and sanction FI on AML matters.
Strengthen the SIB, the SIS, the CNV, and the INCOOP overall supervisory process to effectively address AML/CFT matters.
|Money value transfer services|
SR.VI – NC
Designate a supervisory body responsible for the licensing, regulation and supervision of money or value transfer service (MVTS) operators.
Investigate and monitor informal MVTS systems.
|3. Preventive Measures: Non-Financial Businesses and Professions|
|Customer due diligence and record-keeping|
R.12 – NC
All DNFBPs should be made subject to CDD and record-keeping requirements.
Ensure the application of CDD by DNFBPs with respect to politically exposed persons, in the case of the use of new technologies, and in the case of reliance on intermediaries or third parties.
|Suspicious transaction reporting|
R.16 – NC
Lawyers and other independent legal professionals should be required to report suspicions.
The recommendations made regarding R.13, 14, 15, and 21 should also apply to DNFBPs.
|Regulation, supervision, monitoring, and sanctions|
R.24 – NC
R.25 – NC
Supervisory authorities should be specifically charged with the AML/CFT regulation and supervision of all DNFBPs.
Establish guidelines to help DNFBPs implement and comply with AML/CFT requirements. The FIU could be assigned the role of establishing such guidelines.
|Other non-financial businesses and professions|
R.20 – NC
Extend CDD requirements to pawnbrokers and identify other non-financial businesses and professions that may be vulnerable and consider extending AML/CFT requirements to them.
Apply measures to provide greater incentive for developing modern and secure transaction techniques.
|4. Legal Persons and Arrangements & Nonprofit Organizations|
|Legal Persons–Access to beneficial ownership and control information|
R.33 – NC
Introduce mechanisms to provide transparency regarding the beneficial owners and controllers of legal persons.
Adopt measures to allow competent authorities to obtain or have access in a timely fashion to adequate, accurate, and current information on beneficial ownership and control of legal persons.
|Legal Arrangements-Access to beneficial ownership and control information|
R.34 – NC
Adopt measures to prevent the unlawful use of trusts in relation to money laundering by ensuring that commercial, trust and other laws require adequate transparency concerning the ownership and control of trusts.
Adopt measures that may allow competent authorities to obtain or have access in a timely fashion to adequate, accurate, and current information on beneficial ownership and control of legal persons.
SR.VIII – NC
Implement adequate measures in line with the FATF requirement. In particular: (1) carry out a comprehensive domestic review of the non-profit sector; (2) adopt the necessary measures to protect this sector from terrorist financing through outreach and effective oversight; and (3) implement effective domestic co-operation and information-sharing mechanisms among competent authorities that hold information on non-profit organizations.
|5. National and International Cooperation|
|National cooperation and coordination|
R.31 – NC
Establish formal and informal mechanisms to support cooperation and coordination at policy-making and operational levels among the various law enforcement authorities, the UAF, and other competent authorities involved in combating ML/FT.
Establish mechanisms to facilitate consultation between competent authorities, the financial sector and other sectors (including all DNFBPs) on implementation of the AML/CFT laws, regulations, guidelines or other measures.
|The Conventions and UN Special Resolutions|
R.35 – PC
SR.I – NC
Amend the AML Law and enact CFT legislation to fully cover the ML and TF offences and thus completely implement the Vienna, Palermo and Terrorist Financing Conventions.
Implement the UNSC Resolutions by developing and executing the necessary procedures and mechanisms.
|Mutual Legal Assistance|
R.36 – PC
R.37 – LC
R.38 – NC
SR.V – NC
Establish specific provision for applying provisional measures at the request of a foreign country for search, seizure and confiscation.
Consider establishing an asset forfeiture fund, as well as arrangements for coordinating seizure or confiscation actions with other countries and to share confiscated assets with other countries which participated in coordinated action.
R.39 – PC
R.37 – LC
SR.V – NC
Consider enhancing procedures to ensure that extradition requests are not unduly delayed and provide for alternative simplified procedures for extradition on a case-by-case basis.
Establish statistical tools in order to have the ability to provide an accurate accounting of extradition requests received and sent
|Other Forms of Cooperation|
R. 40 – PC
SR.V – NC
Consider establishing operational task forces at an early stage of investigations at regional level of criminal matters involving the proceeds of crime, money laundering and terrorist financing.
|6. Other Issues|
|Resources & Statistics|
R.30 – NC
R.32 – NC
Conduct a review of the effectiveness of the cooperation and coordination systems for AML/CFT in the short term and thereafter on a regular basis. Statistics should be updated and maintained in line with the recommendations in Rec. 32.
|Other relevant AML/CFT measures or issues|
|General framework – structural issues|