PARAGUAY: UNCTC VISIT LENDS MOMENTUM TO KEY

UNCLAS ASUNCION 000730

SIPDIS

SIPDIS

USUN FOR ELIZABETH WILCOX AND CAROLYN WILSON; IO/PSC FOR
BETSY FITZGERALD; S/CT FOR ERIC ROSAND

E.O. 12958: N/A
TAGS: PREL PTER KCRM PA
SUBJECT: PARAGUAY: UNCTC VISIT LENDS MOMENTUM TO KEY
LEGISLATION

REF: ASUNCION 698


1. Summary. The visit by UNCTC Executive Director Javier
Ruperez has lent new momentum to prospects for key
legislation that will satisfy Paraguay's counterterror
obligations. Upon conclusion of his trip, Ruperez ventured
that we are at "the beginning of the end" in terms of
Paraguay's prospects for adopting the necessary legislation.
Post shares Ruperez' assessment that prospects for adoption
are better now than ever. Key Congressmen are engaged and a
media campaign on the ills of money laundering is in full
swing. Ruperez delivered a clear message regarding
Paraguay's obligations and key Paraguayan interlocutors
committed themselves to action. At the end, though, the key
will be follow-up. We have heard these promises before. It
is essential that the UNCTC remain engaged reminding Paraguay
of its commitments and the need for prompt action. End
Summary.

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Taking his Message to All Sectors
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2. In the course of his visit to Paraguay 7/10-7/14, UNCTC
Executive Director Ruperez met with a wide range of officials
from Vice President Castiglioni and several Ministers,
including FM Rachid and Minister of Industry and Commerce
Raul Vera, to the President of the Supreme Court and key
Congressmen, including the new President of the Congress and
leaders of several of the political parties. He also met
with members of the private sector, including business
leaders and representatives of the Banking Association, civil
society, including several NGOs, and the press. He
consistently delivered the same message: Paraguay has assumed
certain obligations to counter terrorism and it is past time
for it to meet those obligations by adopting and implementing
the necessary legislation.

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Paraguayan Interlocutors Commit to Action
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3. All of the governmental interlocutors with whom Ruperez
met assured him of Paraguay's commitment to meet those
obligations. Many also appealed for assistance particularly
in the form of training to implement legislation. Sen. Bader
Rachid, the President of the Legal Code Reform Commission,
explained that he had agreed to incorporate language
addressing money laundering and terrorism in the bills his
commission is preparing for Congressional review later this
year. Ruperez expressed satisfaction with the draft bill
that Rachid shared with him. Ruperez also met with the Sen.
Gonzalez Quintana, the new President of the Senate, and
several of the leaders of other political parties, who
similarly expressed support for adopting necessary
legislation. Supreme Court President Torres Kirmser and
Fiscal General Ruben Candia expressed concern about a nascent
violent leftist movement in the interior and tied this to the
need to adopt proper legislation to meet this threat. The
business community took on board the need for the AML and CT
legislation. Recalling abuses under Stroessner, however, the
NGOs with whom he met expressed some concern about prospects
the government would abuse the authorities it would acquire
by virtue of this legislation. Ruperez' activities were
covered by the press.

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Beginning of the End?
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4. In his closing meeting with A/DCM, Ruperez surmised we
may be at the beginning of the end in terms of Paraguay's
efforts to meet its obligations. Rachid is looking to wrap
of the work of the Penal Commission in the coming weeks.
This Commission is about to conclude its work drafting a bill
that establishes money laundering and terrorism as crimes and
cites the penalties that apply. The work of the Procedural
Commission, however, is still some months from concluding.
It will include the procedures investigators and prosecutors
can embrace in investigating these serious crimes.
Separately, bills that create the institutions at the center
of efforts to combat money laundering and terrorist financing
will also have to be adopted. Rachid and his counterpart on

the Penal Code Reform Commission have pledged to support
these last bills. Ruperez said that he would be prepared to
consider providing training once these bills are adopted.


5. Comment. We share Ruperez' optimism with a healthy dose
of caution. Prospects are better now than ever, but much
work remains and several potential obstacles could still
emerge. While two key Senators are pushing bills that
contain provisions to meet Paraguay's counter terror
obligations, those bills will be weighty and could spur some
lengthy debate. Also, once we get to October, if the bills
are not adopted by then, they may well get pushed off until
next year, as Congress becomes almost singularly focused on
budget discussions at that point. Ruperez' visit was
important on both a substantive and symbolic level for
reminding Paraguay of its international obligations. To
reach closure on this issue, however, follow up on the part
of the UNCTC will be essential either in the form of a follow
up visit and/or the requirement that Paraguay deliver a
report on its efforts by a certain date -- i.e. September 30.
End Comment.


6. Post thanks Department's Caroline Croft (WHA/BSC),Betsy
Fitzgerald (IO/PSC) and Eric Rosand (S/CT) and USUN's Carolyn
Wilson and Elizabeth Wilcox for making this visit happen.
This well timed, well-executed trip has lent new momentum to
post's own efforts to get this legislation adopted advancing
in the process a major USG counterterror objective.




CASON