Country Reports on Terrorism 2014 - Paraguay

Overview: In 2014, the Government of Paraguay continued to cooperate with the United States on counterterrorism matters, and the U.S. Department of State's Antiterrorism Assistance program contributed to building Paraguay's counterterrorism law enforcement capacity. Paraguay continued to face challenges of ineffective immigration, customs, and law enforcement controls along its porous borders, particularly the Tri-Border Area (TBA) with Argentina and Brazil. Illicit activities within the TBA remained potential funding sources for terrorist organizations, most notably Hizballah.

Since 2008, persons claiming to be part of the Paraguayan People's Army (EPP) – an internal criminal group dedicated to a socialist revolution in Paraguay – have been active in the northern departments of Concepcion and San Pedro. The group has been involved in violence designed to intimidate the population and government. The Government of Paraguay believes the EPP to be a small, decentralized group of 20 to 100 members. In September, former EPP members – reportedly expelled from the group over disciplinary issues – created the Armed Peasant Association (ACA). The ACA has similar leftist pursuits and is believed to consist of 13 members. EPP/ACA activity consisted largely of isolated attacks occurring on remote police and army posts, or against ranchers and peasants accused of collaborating with Paraguayan security services.

2014 Terrorist Incidents: The EPP conducted two high profile kidnappings, which received significant press coverage:

• In April, EPP members kidnapped a Paraguayan teenager who was released after 267 days in captivity on December 25, after his family reportedly paid a US $500,000 ransom.

• In July, EPP members kidnapped a police official who was believed to still be held by the EPP at year's end.

Legislation, Law Enforcement, and Border Security: Paraguay pursued individuals suspected of terrorist crimes under laws passed in 2010 and 2011. The Paraguayan government continued to make use of a 2013 counterterrorism law that allows for the domestic deployment of the Paraguayan military to counter internal or external threats. Counterterrorism functions are handled by the Paraguayan National Police Secretariat for the Prevention and Investigation of Terrorism. Military forces and police officials operated jointly in 2014 in the San Pedro, Concepcion, and Amambay departments, with limited success.

Few steps were taken to address security issues at land border crossings, particularly with respect to the large and generally unprotected borders with Argentina and Brazil. The minimal police and military presence along these borders allowed for a largely unregulated flow of people, contraband, and money. Paraguay's efforts to provide more effective law enforcement and border security were hampered by a lack of interagency cooperation and information sharing, as well as pervasive corruption within security, border control, and judicial institutions.

Paraguay continued to participate in the Department of State's Antiterrorism Assistance program, which provided instruction and resources to assist Paraguay to build its capacity to secure borders and ports of entry to prevent the transit of terrorists and material.

Countering the Financing of Terrorism: Paraguay is a member of the Financial Action Task Force of Latin America, a Financial Action Task Force (FATF)-style regional body, and is a member of the Egmont Group, a global association of financial intelligence units. Paraguay has both counterterrorist financing legislation and the ability to freeze and confiscate terrorist assets without delay, although there were no terrorist financing convictions or actions to freeze in 2014.

Paraguay requires the collection of data for wire transfers. Paraguay has porous borders that have facilitated a wide variety of illicit activities, however. There is a lack of concerted law enforcement efforts to implement their laws. Significant quantities of money are laundered through businesses or moved in cash. Paraguay does not monitor non-profit organizations to prevent criminal misuse or terrorist financing.

For further information on money laundering and financial crimes, see the 2014 International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.

Regional and International Cooperation: Paraguay collaborated with Brazil and Argentina in border protection initiatives, regional exchanges, and discussions on counterterrorism and law enforcement projects. In February, Paraguay was named Vice-President of the OAS Inter-American Committee Against Terrorism.