The European Commission announced that the two Central American countries are on the list of nations with deficiencies in their anti-money laundering and anti-terrorist financing strategies.
Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama and Zimbabwe are the countries included in the list, the European Commission reported.
Among the activities susceptible to laundering are sales of gold and vehicles, the purchase and sale of real estate and electronic money transfers.
From a report entitled "Mutual Evaluation of Nicaragua October 2017", by the Financial Action Group of Latin America (Gafilat):
Key findings
Nicaragua has legal and regulatory provisions, as well as an institutional framework allowing combating, at a certain level, Money Laundering (ML) and Terrorist Financing (TF). The current legal framework in force has some deficiencies that limit the general system effectiveness.
Following the transfer by Abdul Waked of Gese's majority shareholding to Fundación Publicando Historia, the Editorial Group's access restrictions to the United States financial system have been lifted.
From a statement by the US ambassador in Panama:
I and my Embassy colleagues in Panama congratulate all parties involved in the successful effort to reestablish unfettered access to markets and the financial system of the United States on behalf of the newspapers of the La Estrella de Panama and El Siglo Editorial Group (GESE).
Panama and Nicaragua are among the ten countries in Latin America with the highest risk of money laundering, according to the Basel Institute of Governance.
The anti-money laundering index (AML) prepared by the Basel Institute of Governance places Panama in fourth place in the list of countries with the highest risk of money laundering and financing of terrorist activities in Latin America and the Caribbean.
The housing market, casinos, concert halls, and the livestock sector are all used to launder money in Central American countries.
Excerpted from the report "International Narcotics Control Strategy Report, Volume II, Money Laundering and Financial Crimes" by the US State Department:
Costa Rica Transnational criminal organizations continue to favor Costa Rica as a base to commit financial crimes due to its location and limited enforcement capability. Costa Rica’s government has attempted to strengthen the legal framework for supervision and enforcement; however, challenges remain in mitigating money laundering risks. Costa Rica is a transit point that is also increasingly used as an operations base for narcotics trafficking; and significant laundering of proceeds from illicit activities continues. Costa Rica should continue to close financial crimes legislative gaps and allocate resources for investigation and prosecution.
The Office of Foreign Assets Control has granted a license, until December 14, 2016, to access the US financial system, and allow the sale of the companies to be managed.
The license granted by the Office of Foreign Assets Control and the US Treasury Department (OFAC) is valid until December 14 this year and authorizes the companies Importadora Maduro, Maduro Internacional and Lindo & Maduro to make arrangements for them to be bought.
In order help keep the chain stores operating, the Office of Foreign Assets Control has authorized the breakdown of links to the ownership and control of Wisa Group.
The aim of these measures is to "protect the workforce", at Felix B. Maduro, Importadora Maduro, S.A. and MaduroInternational, S.A. Grupo Wisa, which can now start a process to disassociate themselves from Wisa, Abdul Waked and Mohamed Abdo Waked.
The Global Financial Integrity report notes that between 2004 and 2013 the flows of money from Costa Rica from laundering and other illicit sources increased by 10% compared to the period 2003-2012.
EDITORIAL
The report entitled "Illicit Financial Flows from Developing Countries: 2004-2013" by Global Financial Integrity, shows that during the 10 years in question, the flow of illicit money from Costa Rica exceeded $11 billion.
The most important international conference on issues of transparency will be held in Panama City from 1 to 4 December 2016.
From a statement issued by the Ministry of Foreign Affairs in Panama:
From December 1st to 4th 2016, Panama will host the 17th International Anti-Corruption Conference (IACC), the most important conference around the world in transparency issues.
Of the countries on the isthmus Costa Rica, Guatemala and Panama stand out as countries that are causing "great concern" in this matter.
From the report by the US State Department: "International Narcotics Control Strategy Report Volume II - Money Laundering and Financial Crimes" March 2015:
Costa Rica
Transnational criminal organizations increasingly favor Costa Rica as a base to commit financial crimes, including money laundering.
The Global Financial Integrity report places Costa Rica and Panama in positions 14 and 18 in the list of countries that moved the largest flows of illegal money in the world between 2003 and 2012.
EDITORIAL
The report entitled "Illicit Financial Flows from Developing Countries: 2003-2012" by Global Financial Integrity, said that between those years, the flow of illicit money in Costa Rica exceeded $94 billion, about $30 billion more than the amount accumulated between 2001 and 2011, according to reports from the same institution in mid-2013.
The Financial Action Task Group has removed Nicaragua from the list of countries that pose risks relating to money laundering and terrorist financing.
From a press release by The Financial Action Task Force (FATF):
Jurisdictions no Longer Subject to the FATF’s On-Going Global AML/CFT Compliance Process:
Nicaragua
The FATF welcomes Nicaragua’s significant progress in improving its AML/CFT regime and notes that Nicaragua has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in June 2011. Nicaragua is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Nicaragua will work with GAFILAT as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.
The two nations have been included in the list of countries with deficiencies in the fight against money laundering and terrorist financing.
The Financial Action Group, assigned to the Organization for Economic Cooperation and Development noted that Panama and Nicaragua are in breach of the recommendations that the agency provides to improve controls for preventing money laundering in the financial system.