On March 6th, 2019, the Secretariat of Prevention of Money Laundry (“SEPRELAD” as per its Spanish acronyms) issued the Administrative Order N° 56/19 (the “Order”). The Order provides the obligation of communicating the transferring of funds abroad related to acts of international commerce and will be in force on May 2nd,2019.
Through the Order, the SEPRELAD aims to provide with procedures to collaborate with the preemption of money laundry and terrorism financing.
It is provided that if someone wants to transfer funds to entities located abroad, in the context of international trade, it is necessary to confer an explicit authorization for the financial entity to inform to the Paraguayan Customs Authority (“DNA” as per its Spanish acronyms) about:
(i) Each transfer or remittance of funds conducted to entities of the financial system located abroad, to pay for the price of imported merchandise or merchandise that will be imported to Paraguay; and
(ii) The date scheduled for the dispatch.
In case that this authorization is not conferred, the entity of the Paraguayan financial system is obliged to abstain from conducting the requested transfer or remittance.
The entities of the financial system are authorized through the Order, to access on requirement, to the commercial invoices, proforma or any other document, in the repository of the SOFIA system, through the communications network of financial information of the Central Bank of Paraguay.
The DNA is obliged to inform to the SEPRELAD, to the Central Bank of Paraguay and to the entities of the financial system of Paraguay that are participating in the payment, in case that the import operation has not been conducted within the indicated term.
In case that the payment is not being conducted through a qualified entity of the financial system, the DNA is obliged to report to the Central Bank of Paraguay, to the financial entities that are participating in the operation in any percentage, and to the SEPRELAD, about the method of payments of the dispatch.