Paraguay’s Social Security Institute (IPS) has filed a criminal complaint for breach of trust and criminal association, targeted at the directors of Ueno Bank and any authorities of the Central Bank of Paraguay (BCP) involved in the placement of public pension funds belonging to the IPS in Ueno Bank.
The criminal complaint was submitted to the Specialised Unit for Economic Crimes and Anti-Corruption (UDEA) through its legal director, Attorney Pablo Morínigo, and seeks to hold those involved personally liable. The complaint was filed with UDEA, so that it can intervene and begin the fiscal investigation. For the IPS, this means exhausting all available legal actions to try to recover the public pension funds and pursuing criminal charges against those responsible, the IPS legal director stated.
Public pension funds and personal assets
Morínigo argued that criminal liability for these acts means that those responsible must use their personal assets to cover the consequences of the offences, should they be found guilty. This differs from other types of lawsuits, where the institution they represent typically pays, he added.
In that regard, he explained that this criminal complaint is separate from the proceedings underway at the Central Bank of Paraguay. The goal is for those responsible – the individuals who bear criminal responsibility, Morínigo specified – to not only face the legal consequences of their actions but also be held personally liable, stated the legal director.
Background to the Ueno Bank case
Ueno Bank, a rapidly expanding digital lender that reached nearly three million customers, entered formal resolution on 3 November 2026 after the Central Bank of Paraguay determined that its solvency ratio had fallen below half the required minimum. Between 2023 and 2026 the bank received substantial deposits and placements from public and pension entities. As of September 2026, funds from state agencies and entities held at Ueno stood at approximately ₲3,608,550,782,201 (about US$576.6 million) plus US$233.4 million.
Investigations allege that the bank carried out irregular credit operations with companies linked to its economic group, while public and pension funds, including those of the Social Security Institute (IPS), remained placed there. Former President Santiago Peña has been linked to decisions on the placement and renewal of such funds and to prior shareholding in Ueno Holding.
The collapse has prompted criminal charges against multiple individuals for offences including breach of trust, asset freezes, and ongoing fiscal inquiries.
