FINANCIAL CRIME IN PANAMA OUT OF CONTROL

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock

FATF SHOULD BRING BACK THE NCCT LIST, AND NAME THE REPUBLIC OF PANAMA

The Financial Action Task Force (FATF) no longer "names & shames" the jurisdictions where money laundering and terrorist financing run rampant, but I believe that it is time to return to that highly effective practice, and my first candidate is the Republic of Panama, where, in my humble opinion, financial crime, and especially money laundering and terrorist financing, are out of control.

 

Why Panama first and foremost ? Here are but a few of the red flags that I am aware of:

 

(1) Money laundering of criminal profits, especially those originating from Venezuela and Colombia, into and through major Panamanian banks, is widespread.

 

(2) Enforcement of the existing anti-money laundering laws is virtually non-existent.

 

(3) A number of prominent, and sanctioned, Latin American and Middle Eastern and terrorist groups are moving money through Panamanian banks; some even have permanent account relationships there. Funds from some groups are then transferred to Beirut, and others to offshore tax haven countries; some money even enters the United States, where it could forseeably fund terrorist actions.

 

(4) The Venezuelan air bridge, business jets transporting illicit bulk cash, and arriving regularly at Panamanian general aviation airports, operates without any serious interference from local law enforcement.

 

(5) Foreign nationals who are the victims of financial crime in Panama rarely obtain justice, through the corrupt criminal court system. The perpetrator's laundering of his illegally-acquired wealth, is never prosecuted in Panama.

 

(6) The involvement,  of Panamanian PEPs, including several at the ministerial level, in corrupt conduct, taints any serious efforts to reign in financial crime.

 

(7) The powerful Syrian Organized Crime cartel, which owns several banks, and has placed key people in most important government agencies, operates free of any government interference.

 

There are many more, I think it is high time to Bring back the NCCT List, and place Panama on it, so that US and EU banks can govern themselves accordingly.

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WILL THE UNITED STATES REQUIRE DISCLOSURE OF BENEFICIAL OWNERSHIP OF CORPORATIONS TO AVOID THE FRAUD AND MONEY LAUNDERING?

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock

WILL THE UNITED STATES NOW FINALLY REQUIRE DISCLOSURE OF BENEFICIAL OWNERSHIP OF CORPORATIONS ?

Bipartisan sponsors have introduced 2013 version of a previously-filed bill, now renamed the Incorporation Transparency and Law Enforcement Act of 2013*, which President Obama previously sought to pass, when he was a United States Senator.

The bill, if enacted into law, will seek to forever close the door on corporation secrecy in the fifty states.

In short, the bill's provisions:

(1) All newly-formed corporations in the United States would be required, at formation, to identify all their beneficial owners. This loophole ,in the corporation laws of the individual state, would no longer exist, due to this Federal legislation.

(2) There are penalties authorized for providing false information.

(3) Law enforcement agencies, with subpoenas or other legal process, could access this information on state government databases and files.

(4) Corporations bidding on Federal contracts would have to supply this information to the US Government.

(5) Regulated and publicly-traded corporations would be exempt.

The bill would bring the United States into full compliance with FATF standards regarding disclosure of beneficial ownership. It would certainly take a huge bite out of financial crime in the United States; pray for its passage.

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* There is a pdf version of the bill available on the website of bill co-sponsor, Senator Carl Levin. readers who wish to see the complete text can visit the Senator's website here, and scroll down to "Recent News" for the 1 August article. There is a link to the pdf there. if any reader has difficulty finding the bill, email me and I will send it to you.   miamicompliance@gmail.com

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LAWYERS, ACCOUNTANTS AND BANKERS WOULD BE HELD LIABLE FOR CRIMINAL ACTS OF CLIENTS

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA   ~Contributed & Written by Kenneth Rijock ~

FATF REPORT ON ATTORNEY MONEY LAUNDERING IS INSTRUCTIVE

The new Financial Action Task Force (FATF) report on attorney money laundering, titled Money Laundering and Terrorist Financing Vulnerabilities of Legal Professionals* contains many excellent examples of how lawyers, both knowingly and unwittingly, facilitate money laundering and terrorist financing.

The report's most valuable section discusses these issues:

(1) Misuse of trust accounts by clients and attorneys.

(2) Real property purchases.

(3) Creation of companies and trusts.

(4) Management of companies and trusts.

(5) Managing client affairs & making introductions.

(6) Use of litigation in furtherance of money laundering and terrorist financing.

(7) Use of specialized legal skills.

I recommend that you review this report if you are a compliance officer. It will explain a number of tactics used by lawyers for criminal organizations that you may not be aware of.

Note that the title includes all legal professionals, not just attorneys. Paralegal assistants often perform a large portion of routine legal tasks, and one must remember that some of them are instrumental in creating the schemes used to launder client money.

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*The report can be accessed here

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