Panama Lashes Out At Banking Criticisms

by Mike Godfrey, Tax-News.com, New York

29 October 2001

After the UK's Independent newspaper quoted offshore publisher David Marchant as saying: "If I wanted to launder money, the three domiciles that I would consider using are Panama, Nevis and Grenada," Panama's banking superintendent Delia Cardenas has written to the paper to protest.

" I was surprised and dismayed to read the article 'The sun goes down in tax-free paradise'," writes Ms Cardenas, "in which the scope, strength and sophistication of our system of banking supervision and regulation, as well as the drive and determination of our country to co-operate in the prevention of and fight against money laundering, is put in doubt. Specifically, the article states that Panama is considered to be an attractive jurisdiction to the underworld and that this country is extremely corrupt, with legislation which is not enforced at all."

"As you should be well aware, we have been receiving very high marks from the Financial Action Task Force (FATF), as well as other bodies with recognised expertise, authority and credibility in addressing money laundering issues, precisely because of our great efforts in this area. As a result, Panama is no longer included in the list of countries whose banking legislation is inadequate to fight against money laundering and other financial crimes; in addition, our country has demonstrated that, as a matter of state policy, it is committed to preventing its international banking centre from being used in criminal activities."

Indeed just last week Panama was complimented by US officials on its response to requests for information on terrorists - see elsewhere in today's Tax-News. There certainly used to be a problem, but perhaps Mr Marchant's slur is now unjustified?

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