Paraguay
Last Updated: 09/06/2009
CENTRAL AUTHORITY FOR REPORTING
Secretaría de Prevención de Lavado de Dinero (SEPRELAD).
OTHER ANTI-MONEY LAUNDERING REGULATOR(S)
N/A.
ARE LAWYERS COVERED BY MONEY LAUNDERING LEGISLATION?
No, only the following entities are covered:
-
Banks;
-
Financial Entities;
-
Insurance Companies;
-
Exchange Houses;
-
Stock Exchange Houses and Agencies;
-
Investment companies;
-
Proxy Agencies;
-
Administrators of Mutual Investment and Pension Funds;
-
Credit and Consumers´ Cooperative;
-
Gaming houses;
-
Real State Companies;
-
Foundations and Non Governmental Organizations (NGO´s);
-
Pawnshops; and,
-
Any other individual or legal entity usually performing financial intermediation, commercialization of jewels, stones and precious metals; art objects, antiquities, or philatelic or numismatic investments.
LIST THE LAWS REGARDING ANTI-MONEY LAUNDERING, INDICATING WHICH LAWS ARE APPLICABLE TO LAWYERS.
ARE VISITING LAWYERS SUBJECT TO LOCAL LAWS REGARDING ANTI-MONEY LAUNDERING, AND, IF SO, TO WHAT EXTENT?
No, unless they perform an operation exceeding US$ 10.000 or its equivalent in another currency. However, it will be for the bank to inform the central authority for reporting and not the lawyer.
LIST ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS (FOR EXAMPLE, LAW SOCIETY OR BAR ASSOCIATION GUIDELINES) CURRENTLY IN PLACE.
There is no money laundering guidance for lawyers currently in place.
IS THE LAW SOCIETY/BAR ASSOCIATION INVOLVED IN SUPERVISING OR ENFORCING COMPLIANCE WITH ANTI-MONEY LAUNDERING REGULATIONS?
No.
DESCRIBE CLIENT DUE DILIGENCE REQUIREMENTS, INCLUDING WHEN IT MUST BE UNDERTAKEN BY LAWYERS.
N/A.
DOES YOUR COUNTRY FOLLOW A RISK-BASED APPROACH TO CLIENT DUE DILIGENCE BY LAWYERS?
No, a risk-based approach is not applied.
ARE THERE ENHANCED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, POLITICALLY EXPOSED PERSONS?
Only legal persons subject to the law can inform about suspicious operations.
ARE THERE SIMPLIFIED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, LISTED COMPANIES?
There are no simplified due diligence measures, but there are supplementary measures for listed companies who are subject to the Anti-Money Laundering Law.
ARE LAWYERS PERMITTED TO RELY ON THIRD PARTY DUE DILIGENCE? IF YES, PLEASE DESCRIBE.
N/A.
WHEN IS A LAWYER UNDER AN OBLIGATION TO REPORT SUSPICIOUS TRANSACTIONS?
The lawyer is only under the obligation to report suspicious transactions when he has been summoned to the courts to testify.
DOES ATTORNEY/CLIENT PRIVILEGE AND/OR DUTIES OF CONFIDENTIALITY PROVIDE A DEFENCE OR PARTIAL/TOTAL EXCEPTION TO THE REQUIREMENT TO REPORT SUSPICIOUS TRANSACTIONS?
The confidentiality provision only pertains to the legal persons subject to the law in relation to its clients or third parties. Banking secrecy prevails unless ruled otherwise by a Judge.
DOES LOCAL LAW PROVIDE ANY CRIMINAL AND/OR CIVIL INDEMNITY TO A LAWYER WHO HAS REPORTED A SUSPICIOUS TRANSACTION?
No.
ONCE A SUSPICIOUS TRANSACTION REPORT HAS BEEN FILED, IS A LAWYER ALLOWED TO PROCEED WITH THE LEGAL ADVICE/TRANSACTION, AND, IF SO, MUST CONSENT FROM AUTHORITIES BE OBTAINED FIRST?
The suspicious transaction can be filed by a lawyer. However, it is the Central Authority for Reporting (SEPRELAD), in light of any evidence, who shall decide whether to allow the transaction.
IS THERE A TIPPING-OFF PROHIBITION? IF YES, PLEASE DESCRIBE.
No.
DESCRIBE ANY RESTRICTIONS ON ACCEPTING A NEW CLIENT.
None.
ARE THERE ONGOING MONITORING REQUIREMENTS FOR EXISTING CLIENTS? IF YES, PLEASE DESCRIBE.
Not from the lawyer’s perspective.
DESCRIBE ANY OTHER WAYS IN WHICH LAWYERS ARE AFFECTED BY ANTI-MONEY LAUNDERING LEGISLATION.
According to the US Department of State report, the enactment of a new Criminal Code in mid-2009 will create certain anti-money laundering offenses to which the lawyer should be aware of.
HAVE LAWYERS IN YOUR JURISDICTION BEEN IMPLICATED IN MONEY LAUNDERING, INCLUDING ANY TYPE OF COMPLAINT, ARREST OR PROSECUTION?
No.
HAS THE FINANCIAL ACTION TASK FORCE (FATF) CONDUCTED A MUTUAL EVALUATION OF THIS COUNTRY, AND, IF SO, WHAT WERE THE FINDINGS CONCERNING LAWYERS’ COMPLIANCE WITH THE FATF 40+9 RECOMMENDATIONS?
Paraguay is a member of GAFISUD, who released a mutual evaluation report in 2007.
Information provided by:
Mr Luis Breuer
Ms María Antonia Gwynn
Berkemeyer Attorneys and Counselors
Edificio Jacaranda
4th Floor
Benjamín Constant 835
Asunción
Paraguay
General Email: Web.Site@berke.com.py
General Website: www.berke.com.py