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Subject

The new Political Financing Law.

Significance

A new law has been passed to regulate the financing of political parties. The move aims to counter growing infiltration by narcotics gangs of Paraguay’s political system through introducing mechanisms requiring all candidates to reveal the source of financing of their individual campaigns.

Impacts

The new law will do little to improve citizens’ minimal trust in politicians.

The way in which it is implemented may see the law’s effectiveness further watered down.

Washington will continue to press Asuncion for progress on combating money-laundering and terrorism financing.

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