The discourse around U.S. aid cuts contributed to an investigation into 17 former USAID implementers by the Bicameral Commission of Inquiry, or CBI for its acronym in Spanish, to assess if these organizations engaged in money laundering. As of July 2025, though the CBI's efforts did not find there to be any illegal action conducted by these organizations, efforts to discredit Paraguayan civil society continue.
Date: 7/25
Region: Latin America & Caribbean
Country: Paraguay
Topic: Governance & Rights
Policy Lens: Democracy & Governance
Entry Type: Secondary Effect
Additional Context: According to EU SEE, as part of a coordinated effort to repress foreign-funded civil society organizations, the CBI for the "Investigation of Punishable Acts of Money Laundering, Against State Property, Smuggling and Other Related Crimes" was established in 2024. One of the three major issues to be investigated was the potential money laundering linked to alleged political financing through civil society organizations.
In February 2025, members of this commission began requesting records from various civil society organizations, 17 of which had received funding from USAID. These organizations voiced apprehension due to the sensitive and confidential information. Information shared by these organizations to the CBI was subsequently published publicly.
The final report from the CBI was submitted in July 2025 claiming that it was impossible to establish the punishable offense of political financing, due to the claimed withholding of information by these organizations.
Source: EU SEE