In this gritty border town known as a haven for drug smugglers, arms dealers and counterfeiters, stacks of money change hands in the open on every corner and thousands of people each day stream across Friendship Bridge into Ciudad del Este. They carry packages on their backs, in wheelbarrows or on carts, and border police stop few. Such chaotic scenes give life to the city's reputation of lawlessness and U.S. officials' description of the tri-border area where Paraguay, Brazil and Argentina meet as a key South American point for Islamic terrorist fund raising to the tune of $100 million a...