PARAGUAY Law and Practice Contributed by: Juan Fiorio, Alejandra Corrales and Jean Saavedra, Fiorio, Cardozo & Alvarado
• sworn statement certifying that the individual is not disqualified from holding such a posi - tion and satisfies the relevant eligibility criteria as per Article 36, Law No 861/96 and Article 18, Law No 2794/05; • certificate issued by the Public Records Office stating that the individual has not been declared bankrupt or requested a meeting of creditors; • certificate confirming the individual is not under interdiction; • criminal record certificate issued by the Judi - ciary; and • certificate of tax compliance, or an authenti - cated copy thereof; The documents must be submitted within a maximum of ten working days. The Superintendency of Banks will have a period of ten working days to object to the designation of the directors, starting from the day after the receipt of the communication. If a board mem - ber becomes ineligible to hold such a position in accordance with the relevant eligibility criteria, the Superintendency of Banks may enforce their removal at any time. 4.3 Remuneration Requirements Regarding the compensation policy of the entity, according to Resolution No 16, Act 04, dated 20 January 2022, it is the responsibility of the board of directors to oversee the general implementa - tion of the remuneration system by management across the entity. This oversight and implemen - tation may be delegated to a compensation committee, but this does not imply the delega - tion of responsibility. The compensation policy for the board of direc - tors must be approved by the general assembly of shareholders.
The board of directors or the compensation committee, as applicable, must annually review the compensation plans, their processes and outcomes, and assess whether the remuneration system implemented in the entity is creating the desired incentives to manage the risks associ - ated with that system. The board of directors must approve the compensation of the members of the executive team and oversee the devel - opment and functioning of policies, as well as the compensation systems and related control processes. For employees in control functions (ie, risk, com - pliance, and internal audit), remuneration must be determined independently of any super - vised business line, and performance measures should primarily be based on the achievement of their own objectives to avoid compromising their independence. In Paraguay, Law No 1015/97 regulates the obli - gations, actions, and procedures to prevent and impede the use of the financial system for acts aimed at legitimising money or assets that come, directly or indirectly, from criminal activities. This law imposes the obligation on financial enti - ties to identify, register, and verifiably ascertain the identity of clients, whether regular or not, at the moment of establishing business relation - ships, as well as of individuals who intend to conduct transactions with the entities. Additionally, all operations of every client must be clearly and accurately identified and regis - tered, and the records must be maintained for 5. AML/KYC 5.1 AML and CFT Requirements
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