PANAMA/USA. Grupo Wisa, the Panama-based travel retailer and part of the Waked organisation, has rejected US Treasury charges of money laundering against the group and said its lawyers will “fully cooperate” with the authorities to clarify this situation, write Martin Moodie and Lois Pasternak*.
Today (5 May US time), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced extensive sanctions again the Waked organisation, which controls Grupo Wisa (and its La Riviera brand).
In a statement, Grupo Wisa President Abdul Waked said: “We wish to communicate to the public that these accusations are false and unfounded and we have instructed our lawyers to fully cooperate with the Public Ministry so that this unfortunate confusion is clarified as soon as possible.”
In a press release, the US government division said: “Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the Waked Money Laundering Organization (Waked MLO) and its leaders, Nidal Ahmed Waked Hatum (Waked Hatum) and Abdul Mohamed Waked Fares (Waked Fares), as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).”
The Moodie Report has contacted Grupo Wisa and will bring you any further reaction as soon as possible in the interests of balance.
“All orders are on hold,” one leading supplier told The Moodie Report. “[There is] no interaction whatsoever. It is really serious.”
Suppliers contacted by Travel Markets Insider* said they were in shock and deeply concerned about the status of their business with Grupo Wisa, especially with orders waiting to ship from Miami.
“It is a mess and very bad for our industry,” commented a prominent Latin American travel retailer.
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“These accusations are false and unfounded” – Abdul Waked |
OFAC also targeted six Waked MLO associates and 68 companies, which it said were tied to the drug money laundering network, including Grupo Wisa, Vida Panama (Zona Libre), and Balboa Bank & Trust.
OFAC said Waked MLO uses trade-based money laundering schemes, such as false commercial invoicing; bulk cash smuggling; and other money laundering methods, to launder drug proceeds on behalf of multiple international drug traffickers and their organisations.
“As a result of today’s action, all assets of these individuals and entities that are under the jurisdiction of the United States or in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them.”
“This action exposes the Waked Money Laundering Organization and disrupts its ability to launder drug trafficking proceeds using trade-based methods, duty-free retail, real estate development, and financial services throughout the region,” said Acting OFAC Director John E. Smith.
“We look forward to working jointly with the Panamanian authorities to protect the Panamanian and U.S. financial systems from abuse by narcotics traffickers and other illicit actors.”
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The U.S. Department of the Treasury today announced the wide-ranging allegations and resultant sanctions |
The designations also target what the department described as the principal Panama-based companies used by the Waked MLO “to launder drug and other illicit proceeds”. These include Vida Panama (Zona Libre), an import/export company in Panama’s Colon Free Trade Zone; and Grupo Wisa, a holding company for businesses involved in real estate, construction, retail, hospitality, and media, including the La Riviera chain of duty free stores operating throughout Latin America.
Concurrent with this action, OFAC is issuing three general licences that authorise certain transactions and activities for limited periods of time with five entities owned or controlled by the Waked network: Soho Panama (Soho Mall Panama), a luxury mall in downtown Panama City; Plaza Milenio (Millennium Plaza) and Administracion Millenium Plaza, related to a hotel complex in Colon, Panama; and two Panamanian newspapers, La Estrella and El Siglo, which are owned by Grupo Wisa, S.A.
The first two general licences aim to assist with winding down transactions for a limited period of time by authorizing specific activities that would otherwise be prohibited. The third general licence is intended to allow both Panamanian newspapers to continue printing and operating by authorising specific activities that would otherwise be prohibited.
The US action was conducted in coordination with the Drug Enforcement Administration, Customs and Border Protection, and the Miami Division of the Federal Bureau of Investigation. The Panamanian authorities have been informed of this designation and Panamanian and US authorities will coordinate going forward.
Panamanian authorities issue statements
In light of today’s announcement, Panama’s Attorney General, Banking Superintendency, and Securities Market Superintendency have issued the following statements regarding immediate actions taken in Panama.
Kenia Porcell Diaz, Attorney General of Panama, said: “My office has launched an immediate investigation into the specific individuals and organizations named in the U.S. action. We are cooperating fully with U.S authorities in this matter, and we will ensure justice is served by the people of Panama. This investigation further strengthens our efforts and resolve to vigorously attack criminal activity in Panama so that the rule of law prevails.” ·
Gustavo Villa, Secretary General, Banking Superintendency of Panama, said: “As a result of the U.S. actions against the Waked Economic Group and in our overriding interest in protecting the best interest of depositors of Balboa Bank & Trust and its subsidiaries, the Superintendency of Banks of Panama (SBP) is seizing the administrative and operating control of the banking group. The SBP reiterates the stability and soundness of the Panamanian banking system.”
Marelissa Quintero de Stanziola, Securities Markets Superintendent of Panama, said: “In the interests of protecting the financial assets of investors in Panama’s securities market, we have assumed control of the brokerage house Balboa Securities Corp. This action, which is effective today, will allow brokerage activities to continue but under the oversight and secure control of the Superintendency.”
*Lois Pasternak is the Founder and Editor-in-Chief of Travel Markets Insider, a leading industry publication for travel retail in the Americas. The Moodie Davitt Report and Travel Markets Insider have a close, informal working relationship.
