The response from Tabesa and the finance ministry was disproportionately hostile. That may be linked to a much-delayed in-country review of illicit activities that is being conducted by Gafilat, the regional affiliate of the international Financial Action Task Force (FATF).
- The contraband cigarette trade is expanding the influence of Brazilian crime gangs in Paraguay.
- Reports of tax evasion and money-laundering in the sector will draw renewed scrutiny of high-level corruption.
- Failure to implement transparency measures will deter legitimate inward investment.