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$file = <FILE>;

local $/ = undef;  
$file = <FILE>;

$file = join("", <FILE>);

foreach $this_paragraph (@paras) { 
  ....
}

foreach my $this_paragraph (@paras) {
  my @split_para = split(/:/, $this_paragraph);
...
    print $this_paragraph;
  }
}

foreach my $this_paragraph (@paras) {
  if( $this_paragraph =~ /^$KWD:/s ) { 
...
    # This works if the paragraph looks like 'KEYWORD: ...'
  }
}

foreach my $this_paragraph (@paras) {
  if( $this_paragraph =~ /:$KWD\b/s ) { 
...
    # This works if the paragraph looks like '.... :KEYWORD ...'
  }
}