Saturday, October 31, 2020

Panama banking watchdog seizes bank with shady links

-

Panama’s Bank Superintendent (SBP) ordered the  takeover of AllBank, Corp as of 3 pm on Monday, September 9, four days after  Banco del Orinoco,  another bank belonging to the main shareholder of AllBank, was intervened in Curaçao, and closed its  doors after reports of non-compliance with the Capital Legitimation and Terrorist  Financing System.

The president of the Board of Directors of AllBank in Panama is the Venezuelan banker Víctor Vargas Irausquín, who leads the holding Grupo Financiero Banco Occidental de Discount (BOD), owner of Banco del Orinoco.

Curaçao has been listed as one of the countries with the highest money laundering alert, according to the 2019 International Narcotics Control Strategy Report of the US State Department

“One of the banks owned by the main shareholder of AllBank, Corp, in the jurisdiction of Curaçao, (Banco del Orinoco, NV) where a quarter of the bank’s liquid assets is placed and also provides custody services for a third party part of the investments in securities that are part of the productive assets of Allbank,

- Advertisement -

Corp., was intervened on September 5 by the Centrale Bank van Curacao in Sint Maarten (CBCS), which results in the Bank Orinoco NV not being able to continue lending its regular services, it will not be able to offer new services, nor to attract

Related: IMF tells Panama it need to do more to fight money laundering

clients and it will not be able to fulfill its debts, the reason why at the moment all its assets will be frozen “, said a Superintendency statement.

It also notes “a big  weakness in the health of the loan portfolio”, “fragile management of the Corporate Governance”, a business model that becomes unfeasible “and” the uncertainty generated by access to Allbank’s assets, as well as potential contagion effects that derive from the situation of the banking group in Curacao ” would jeopardize the interests of depositors.

The SBPsays  that the takeover does not represent a risk of contagion for the Panamanian Banking System since there is no connection between AllBank and other banks in the country

- Advertisement -

MUST READ

Actress Lori Loughlin begins 2-month prison sentence for role in college admissions scam

Actress Lori Loughlin reported to a federal prison in Northern California on Friday to start a two-month sentence for her role in a massive...

FirstEnergy fires CEO, other executives over Ohio bribery scandal

FirstEnergy Corp. has fired its CEO amid multiple federal investigations related to an Ohio nuclear bailout law passed year. The Akron-based utility company announced in a...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Malta’s regulator fines Lombard Bank $397,000 over money laundering breaches

Lombard Bank has been fined €340,058 for breaching anti-money laundering obligations by the Financial Intelligence Analysis Unit. The breaches were identified by the FIAU in...

Former Jacksonville City Council members set for sentencing in fraud case

Former Jacksonville City Council members Katrina Brown and Reggie Brown are scheduled to be in federal court Tuesday to begin a hearing on their...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks