Panama Praised For Speedy Response To Terrorist Attacks

by Amanda Banks, Tax-News.com, London

29 October 2001

Panama has been praised by US officials for its speedy and cooperative response to requests for information on suspected terrorist accounts, according to a report in the New York Times.

The jurisdiction has been trying to shake off a somewhat seedy image for some time, and was dismayed last year when it was blacklisted by the Financial Action Task Force, and branded as 'uncooperative' in the fight against money laundering, despite having toughened up the financial sector's regulatory system.

However, further banking reforms assured Panama's removal from the blacklist earlier this year, and the jurisdiction's speedy response to Swiss allegations that Saudi dissident Osama bin Laden may have laundered money there, has helped its reputation enormously.

The banking sector, which an unnamed diplomat in the NY Times described as having been 'dogged by a long history of neglect and indifference', immediately sprang into action, as the Executive Vice-President of the Banking Association explained: 'When the 11th happened, we immediately got in touch with all the banks and said terrorist activities are now on the front page,' said Mario de Diego. 'We always said we were committed to helping in this fight.'

Dalys Teran, the head of the country's financial analysis unit, said that no evidence of illegal activity has yet been turned up, although names and photographs of suspected terrorists and criminals had been posted by compliance officers in banks, and traces put on some transactions. 'Panama cannot afford to have a bad reputation,' Ms Teran explained. 'We are a service economy. You have to give service but with adequate controls. That is what we are doing.'

According to the financial analysis chief, the changes to the law have thrown up 25 cases of suspected money laundering which could go to prosecution. Under the old legislation, only 2 cases had been brought in the last 14 years.

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