On 17 July 2020, after a joint effort with the National Institute of Cooperatives ("Incoop"), SEPRELAD issued Resolution 156/20, repealing Resolution 370/11, which had been in force for more than 10 years, restructuring the regulations on the prevention of asset laundering applicable to entities in the cooperative sector involved in attracting savings and granting loans in Paraguay.
Thus, savings and loans cooperatives, which constitute an important segment of the financial sector in Paraguay, must now implement a comprehensive system for the prevention of asset laundering that covers the entire entity, even if some process was delegated to third parties, based on a system of administration and management of risks related to asset laundering. The methodologies and procedures for identifying, evaluating and mitigating these risks must be developed by the entities themselves, also taking into account SEPRELAD's National Risk Assessment and its updates, and the risks must be evaluated every two years, and the methodology used for this purpose must be verified at least every four years.
Policies and procedures for the prevention of asset laundering must be set out in a manual, which in turn must be complemented by a code of ethics with the principles and ethical values to be observed by the entity in the development of its business.
Among other things, the money laundering prevention policies and procedures must include the burden of carrying out verification or due diligence of each of its partners, of identifying the final beneficiaries of the transactions, and of recording them accurately. The verification or due diligence process must also be carried out with regard to the management and control bodies of the entity, as well as with regard to suppliers for purchases from US$50,000, and other contractors in operations of the indicated amount. Records must be kept for at least five years, and technological tools may be used.
To implement the program, which is the responsibility of the institutions' Administration Council, among other things, cooperatives must have a compliance officer and an Anti-Money Laundering Committee, and carry out internal and external audits. All unusual operations must be reported to SEPRELAD within 24 hours of the Administration Council's qualification as such.
The process of verifying partners, administrative and control bodies, suppliers and other contractors may be delegated to third parties.
The supervision of compliance with the obligations that the new regulations impose on cooperatives is responsibility of Incoop.