Country Reports on Terrorism 2015 - Paraguay

Overview: In 2015, 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. Additionally, the Armed Peasant Association (ACA), a splinter group of former EPP members reportedly expelled from the group over disciplinary issues in 2014, continued to operate in the Northern Departments as well. The ACA has a similar agenda and is currently believed to consist of six to eight members. Paraguayan authorities reported that most of the group's leadership was eliminated in a November 16 Paraguayan Joint Task Force operation. EPP/ACA activity consisted largely of isolated attacks on remote police and army posts, or against ranchers and peasants accused of collaborating with Paraguayan security services. Ranchers and ranch workers in northeastern Paraguay, including members of the Mennonite community, claimed the EPP frequently threatened both their livelihoods and personal security.

2015 Terrorist Incidents: The EPP and ACA conducted several high profile operations involving kidnapping, killings, and sabotage that received significant press coverage.

• In January, the EPP allegedly killed two long-time resident German nationals in Azotey, Concepcion Department.

• In February, the EPP allegedly attacked four police stations in Arroyito, Kuruzu de Hierro, and Yvy Yau, Concepcion Department.

• In March, the EPP allegedly killed three farmers in Tacuati, San Pedro Department.

• In July, the EPP allegedly killed five Paraguayan National Police (PNP) officers in Santa Rosa del Aguaray and Jaguarete Forest, San Pedro Department.

• In August, the EPP allegedly killed a ranch manager and kidnapped ranch employees in Tacuati, San Pedro Department.

• In August, the EPP claimed responsibility for the kidnapping of a Mennonite in Tacuati, San Pedro Department. He was believed to still be held by the EPP at year's end. Additionally, the EPP continues to hold police officer Edelio Morinigo, who was taken captive in April 2014.

• In August, the EPP allegedly destroyed a power line tower using an improvised explosive device (IED) in Tacuati, San Pedro Department.

• In September, the EPP claimed responsibility for killing two ranchers in Santa Rosa del Aguaray, San Pedro Department.

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 continued to operate jointly in 2015 in the San Pedro, Concepcion, and Amambay departments, with limited success.

The Tri-Border region of Argentina, Brazil, and Paraguay continued to serve as a suspected funding source for terrorist groups, as 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 materiel.

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. Its financial intelligence unit, Secretaria de Prevención de Lavado de Dinero o Bienes, is a member of the Egmont Group. Paraguay has both counterterrorism financing legislation and the ability to freeze without delay and confiscate terrorist assets. There were no terrorism financing convictions or actions to freeze in 2015.

Paraguay requires the collection of data for wire transfers. Significant quantities of money are laundered through businesses or moved in cash. The Paraguayan government registers and has reporting requirements for non-governmental organizations (NGOs) (including non-profits), and requires NGOs to set up internal monitoring and training regimes to guard against criminal or terrorism financing.

For further information on money laundering and financial crimes, see the 2016 International Narcotics Control Strategy Report (INCSR), Volume II, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.

International and Regional Cooperation: Paraguay collaborated with Argentina and Brazil on border protection initiatives, regional exchanges, and discussions on counterterrorism and law enforcement projects. In 2015, there were working-level meetings between the Paraguayan and Brazilian Federal/Civil Police to increase cooperation. At the second meeting in November, some officers cited investigative successes through the unprecedented sharing of leads and criminal intelligence between the two services. Paraguay served as the 2015 Chair of the Organization of American States' Inter-American Committee Against Terrorism.