Obligated subjects before SEPRELAD

The Secretariat of Prevention of Money or Asset Laundry (as its acronym in Spanish “SEPRELAD”), is a governmental entity constituted as a Financial Intelligence Unit (FIU) of the Republic of Paraguay. SEPRELAD is in charge of regulating the obligations, actions, and procedures designed to prevent the use of the financial system and other sectors of economic activity to carry out acts aimed at money laundering and terrorist financing.

SEPRELAD oversees the enforcement of Law No. 1015/97, “Which prevents and represses illegal acts intended to legitimize money or assets,” along with its amendments.

The Obligated Subjects (OS) under Paraguay’s legislation encompass banks, financial companies, insurance companies, exchange houses, securities companies and agencies (stock exchanges), investment companies, mandate companies, mutual and retirement fund managers, cooperatives, real estate companies, companies that exploit games of chance, non-profit organizations (OSL), pawnshops, governmental entities, non-financial activities and professions, as well as individuals or legal entities regularly engaged in financial intermediation, in the trade of jewelry, precious stones and metals, art objects and antiques, in philatelic or numismatic¹ investment, and those that carry out acts of commerce in general, which imply transfers of money or values, being these either formal or informal, under the provisions of this law. This enumeration provided is not exhaustive².

It should be noted that there is a gradation in sanctions depending on several factors that must be taken into account. Said circumstances contemplate the previous conduct of the obligated subject, the degree of responsibility or intentionality in the facts, among others³.

Through the years, SEPRELAD has issued resolutions to establish a prevention regulation in the area of money or asset laundering, financing of terrorism and proliferation of weapons of mass destruction, based on a risk management system for the different OS⁴ .

At Altra Legal we have extensive experience in preparing money laundering prevention procedures and manuals for subjects bound by Law No. 1015, especially in the automotive and financial sectors.

For more information on money laundering prevention, please contact Larissa Lacout llacout@altra.com.py

¹ Collect and classify stamps, envelopes and other postal documents, as well as from any time and country.

² Article 13 of Law No. 3783 / Modifies several articles of Law No. 1,015 / 97 “Which prevents and represses illegal acts intended to legitimize money or property”.

³ Article 25 of Law No. 1,015 / 97 “That prevents and suppresses illegal acts intended to legitimize money or property”.

⁴ For example, Resolution No. 70 of March 15, 2019 addressed to banks and financial companies supervised by the Superintendency of Banks of the Central Bank of Paraguay, Resolution No. 71 of March 15, 2019 addressed to the OS supervised by the Superintendency of Insurance of the Central Bank of Paraguay and others a little older such as Resolution No. 82 of March 6, 2017 addressed to the Financial Development Agency (AFD) and Resolution No. 85 of 25 March 2015 addressed to individuals or legal entities that are commercially engaged in the import, purchase, sale and consignment of motor vehicles for sale.