PARAGUAY LAW AND PRACTICE Contributed by: Manuel Arias, Carla Sosa, Martin Carlevaro, Milena Sljivich, Alexander Berkemeyer and Antonio Villa Berkemeyer, BKM - Berkemeyer
TEL) for telecommunications or the National Electricity Administration (ANDE) for energy projects. Environmental impact assessments may be required for projects that could significantly affect the environ - ment. Specific Considerations for Different Types of Investments Partnerships and joint ventures are generally treated the same as other forms of investment. The struc - ture of the partnership or joint venture must comply with Paraguayan corporate laws, and any agreements should be registered with the relevant authorities. While there is no specific regime for reviewing acquisi - tions by foreign governments or government-affiliat - ed entities, these investments may attract additional scrutiny, particularly in strategic sectors. The govern - ment may consider national security implications, especially if the investment involves critical infrastruc - ture or natural resources. Analyses Involved The potential economic benefits of the investment are considered, such as job creation, technology transfer and contribution to GDP growth. Although there is no formal national security review process, investments in strategic sectors may be evaluated for potential national security risks. Investors must ensure compli - ance with all relevant local laws, including corporate, tax, labour and environmental regulations. 7.3 Remedies and Commitments The relevant authority overseeing foreign investment in Paraguay is the MIC, along with other sector-spe - cific regulatory bodies. Types of Remedies or Commitments Environmental and social commitments will include adherence to specific environmental standards and practices, and the implementation of corporate social responsibility (CSR) initiatives that benefit the local community. Regular reporting to the relevant authori - ties on the progress and impact of the investment should be carried out, and local laws and regulations should be complied with, including those related to anti-corruption and fair competition.
Investments in telecommunications and media may be subject to additional scrutiny and specific condi - tions to ensure national security. Investments in the mining, oil and gas sectors may require adherence to stringent environmental regulations and commitments to local community development. Foreign investments in the banking and financial services sector may be subject to regulatory approval from the BCP and other financial regulatory bodies. 7.4 National Security Review Enforcement Paraguay does not generally require prior approval for most foreign investments. However, certain sec - tors may require specific licences or permits, such as telecommunications, banking and insurance. Law 642/95 on Telecommunications requires foreign inves - tors to obtain licences from CONATEL before operat - ing in the sector. Investments in sensitive areas such as national secu - rity, natural resources and public utilities may be sub - ject to additional scrutiny and require prior approval from relevant authorities. Law 294/93 on Environmen - tal Impact Assessments mandates that investments in natural resources undergo an environmental impact assessment and obtain approval from MADES. After the investment is made, the relevant authorities continue to monitor compliance with local laws and regulations. Law 1015/97 on the Prevention of Money Laundering requires ongoing compliance and report - ing by foreign investors to the Secretariat for the Pre - A challenge can be initiated by the relevant regulatory authority if there is evidence of non-compliance with legal requirements, national security concerns or vio - lations of anti-corruption laws. The process typically begins with an investigation and a formal notice to the foreign investor outlining the concerns. The ulti - mate decision-maker on such challenges is usually the MIC, in co-ordination with other relevant authori - ties. For example, Law 7548/2025 on the New Fiscal Incentives Regime for National and Foreign Invest - ment grants the MIC authority to make final decisions on investment-related challenges. In cases involving national security or significant public interest, higher vention of Money Laundering. Process for Challenging FDI
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