OMM Newsroom
AnewZ reports that Paraguayan prosecutors found shredded documents while searching the brokerage division of failed digital bank Ueno. Footage released by the prosecutor’s office shows paper fragments that appear to be parts of due diligence reports and emails.
The raid, conducted on Monday, November 8, expanded an investigation launched on November 3 after the Central Bank of Paraguay took control of Ueno. Prosecutors have charged 27 bank officials and associates with breach of trust and attempted fraud.
Former Paraguayan President Santiago Peña and former Central Bank chief Carlos Carvallo have also been charged with breach of trust and administration for personal gain. Both are in pretrial detention and deny wrongdoing.
Carvallo ran the financial company that later became Ueno until 2023, when Peña appointed him head of the Central Bank. Peña was removed from the presidency on Friday, November 6.
Safe searched at property linked to Peña
Local media reported that prosecutors sought equipment to open a high-security safe found at a property linked to Peña. A separate investigative team searched his home in Asunción, the country’s capital.
On Monday, parliament confirmed economist Jorge Schreiner as the new head of the Central Bank. He was nominated by new President Pedro Alliana, who took office after his swearing-in ceremony. Former bank regulator Fernando Rivarola also joined the bank’s board. A warning Rivarola issued about Ueno in July later leaked to local media and triggered the crisis.
Schreiner told lawmakers that authorities had reacted late and that the Central Bank had failed to withstand political pressure. He said restoring trust in the bank would take time.
Ueno’s customers and assets under investigation
Ueno said it had three million customers, equivalent to about 60% of Paraguay’s adult population. The bank managed $800 million in public funds, including about $380 million belonging to the state pension and health fund. Millions of customers have faced difficulties accessing their money since the bank was taken over.
Prosecutors have sought assistance from the United States, Luxembourg and Argentina to trace assets linked to the bank. Carlos Enrique Junior, an adviser to brokerage firm Freex, said the authorities’ response would be crucial to limiting spillover effects on the financial sector and protecting confidence in it.
