Paraguay: Anti-Laundering Legislation - Implications of Law 6.446 / 19
The General Directorate of Persons and Legal Structures and Final Beneficiaries will enable an Administrative Registry for the persons and legal structures that operate in the Republic of Paraguay, and an Administrative Registry for the final beneficiaries of those persons or legal structures.
Due to the great importance that for the legal entities constituted in Paraguay represent the registries created by the Law, and the seriousness of the sanctions applicable in case of breaches of its provisions, this Law deserves a special highlight with respect to the other laws dictated in the framework of the fight against money laundering, corruption and organized crime.
For the reasons mentioned, we highlight the following aspects of the Law:
1. It obliges all legal entities incorporated in the country, whether they are limited liability companies, associations, foundations, etc., and legal structures such as trusts or investment funds.
3. In the Final Beneficiary Registry, the subjects bound by the Law must:
The Law provides that, when it is impossible to identify the Final Beneficiary, it will be presumed that the Final Beneficiary is the legal representative of the person or legal structure resident in Paraguay.
The provision of the required information will be carried out in all cases within the deadlines, forms and conditions established by the regulations and will have the character of an affidavit, without prejudice to the verification and other requirements by the enforcement authority.
Only once the breached obligation has been regularized, will the enforcement authority issue a certificate of compliance with the obligations set forth in this Law to carry out the suspended procedures again.
The sanctions established by the Law may also be applied to those who refuse to provide information or provide erroneous, false or incomplete information about the administrative record of the person and legal structure and the Final Beneficiary.
The consequences established for cases of breaches of the Law, as well as the established sanctions, will be applied progressively through a compliance calendar to be issued by the Ministry of Finance, granting a period of time necessary to make the relevant structural adjustments, as well as the previous and necessary training to the obliged subjects.
The subjects obliged by the Law must keep for the term of 5 (five) years the documents, files and correspondence that properly accredit or identify the Final Beneficiaries and all the documentation that supports the information required by the enforcement authority.
 Persons or entities that directly or indirectly possess a substantive participation or final control over the legal entity or legal structure or benefit from it within the limits defined by the Law.
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