"Inconsistencies" in Panamanian Finance Company

Supposedly only 12 loan transactions have been recorded in the four years that Pronto Cash has been operating.

Friday, March 30, 2012

According to an article in Panamaamerica.com: "The Ministry of Trade and Industry (MTI) announced yesterday that it has not yet completed the audit which it is carrying out on the lender Pronto Cash, but said they have found several inconsistencies in the operations of the company which is also being investigated by the Attorney General and the Superintendent of Banks for allegedly taking funds illegally."

"A senior official source at the MTI, the institution which regulates financial activity in the country, reported that among the inconsistencies found is that Pronto Cash has supposedly only recorded only 12 loan transactions in its four years of operations. These are 12 loans made out to alleged customers, including their own employees, according to information from the MTI. "

"This is the first time we have encountered a case as strange as this in the MTI", said the source consulted.

"Meanwhile, the Superintendency of Banks in Panama confirmed that it has sent a report on the finance company Pronto Cash to the Public Prosecutor to decide whether there are grounds to open a criminal investigation."

More on this topic

Non-banking Correspondents in Panama

May 2012

Non-banking companies have been allowed to provide financial services on behalf of established banks.

The preamble to the Agreement states that "the hiring out by banks of customer service networks for the provision of certain services and operations on its behalf, known as non-banking correspondents, has been an effective channel with which a greater depth of financial services has been reached, allowing banks to operate in places where they do not have branches or ATMs and reduce transaction costs without incurring excessive risk.”

Financial Company Pronto Cash in Panama Closes

April 2012

The company has been under investigation for issuing customers a "financial card" that allowed them to deposit money by electronic means.

The Ministry of Trade and Industry (MITI) through the Directorate of Financial Enterprises, has ordered the closure of the finance company Pronto Cash after having cancelled its operating permit. The agency also fined the company $10,000 on 1st April.

Warnings in Panama Over Financial Fraud

April 2012

The Superintendency of Banks in Panama is keeping a list containing names of companies that are not authorized to perform private banking or trust activities.

Current investigations into the company Pronto Cash has brought to the fore the risk of financial fraud by companies which are not controlled by the Superintendency of Banks.

Panamanian Finance Company Investigated

March 2012

The Financial company Pronto Cash has issued a MasterCard card that operates similarly to a debit card, allowing payments to be made electronically, without stating its origin.

An article by Rafael Berrocal in Panamaamerica.com.pa reviews the payment system used by Pronto Cash, noting that "the collection of deposits is reserved for formal cooperative banks, and any other system is considered illegal, according to the financial regulators the MICI and the Superintendency of Banks."

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