One year after taking control of the Quetzal Container Terminal, the Guatemalan Public Ministry has ordered the end of the intervention process into the company.
Elperiodico.com.gt reports that "...The courts´s ruling was issued on Thursday, April 15 after a year and a few days of validity of the measure for the TCQ, a company which in the opinion of the prosecutors office was constituted in 2012 as an emerging corporation "to simulate a contract of usufruct" with the state-owned Empresa Portuaria Quetzal (EPQ)."
"When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed."
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 Superintendency of Banks has taken over administrative and operational control of FPB BANK, after it was linked to the corruption case in Brazil known as "Lava Jato" ('Operation Car Wash' in English).
From a statement issued by the Superintendent of Banks:
Through Resolution SBP-0022-2017 issued by the Superintendency of Banks of Panama, orders have been given for the seizure of administrative and operational control of FPB BANK, INC., effective from three thirty meridian time (3:30 pm) on Friday, tenth (10) February this year, based on the provisions of Article 131 of the Banking Law.
The Public Prosecutor and the CICIG have denounced cooptation of the state through a network of corruption headed by Pérez Molina and Roxana Baldetti and arrest warrants have been issued including for very high level entrepreneurs.
Among the employers that the CICIG has linked to this case are Flavio Montenegro, president and manager of Banco G & T Continental, Adolfo Fernando Peña of Banrural, Enrique Castellanos, general manager of Claro, and Alvaro Mayorga Giron, former president of the CACIF, among others.
The Public Prosecutor in Guatemala has taken control of Terminal de Contenedores Quetzal, in order to audit the company and decide on the future of the concession.
From a statement issued by the Public Ministry of Guatemala:
The Public Prosecutor and the Head of the Public Ministry, Thelma Aldana, revealed at a press conference, that the Court of Forfeiture had been asked to take control of Terminal de Contenedores Quetzal –TCQ-, a request which was ruled on favorably.
"We have requested the takeover from the Judge for Forfeiture and appointed an auditor, and the judicial petition was ruled on favourably.The intervention will be headed by lawyer Alexander Aizenstatd, who now has possession in order to start his duties," the Attorney General said. He also explained that on July 11, 2012 the contract between Terminal de Puerto Quetzal and TCQ was finalised, the latter is a corporation, which was incorporated emergently in order to simulate a usufruct contract.
Amid the controversy generated by the Panama Papers, the Financial Action Task Force in Latin America has recognized the efforts made by the country in issues of transparency.
From a statement issued by the Latin American Financial Action Task Force (GAFILAT):
"... Relationship of the current situation with the Evaluation of Panama:
Panama is a member of GAFILAT and as such will be evaluated in the context of the Fourth Round of Mutual Evaluations next year (2017), based on the schedule of assessments approved by the body. Recently. Panama has made considerable efforts to improve its AML / CFT system, which included the modification of its legal system, it has been recognized by FATF; It is important to note that these measures will be the subject of the next assessment to be made on that country.
The Public Ministry of Guatemala has announced that its investigations have shown that a network of illicit laundering of money and other assets operated in the port terminal.
Consideration is being given to canceling the contract with the concessionaire Container Terminal Spanish Quetzal after the denouncement that it paid bribes to Perez Molina for the award of the terminal.
Among the factors hindering the fight against money laundering, are the existence of bearer share corporations, a lack of collaboration among government agencies, and a weak judicial system susceptible to corruption and favoritism.
From the report by the US State Department:
Panama’s strategic geographic location; dollarized economy; status as a regional financial, trade, and logistics center; and lax regulatory system make it an attractive target for money launderers. Money laundered in Panama is believed to come in large part from the proceeds of drug trafficking due to the country’s location along major drug trafficking routes. Tax evasion, financial fraud, and corruption also are believed to be major sources of illicit funds.
The figure is an estimate made by the Intelligence Directorate in Costa Rica released by the US State Department, along with information that indicates a rise in criminal organizations based in the country, and little capacity to combat them.
Money laundering is a criminal activity that handles amounts that are difficult to measure. For example, the report "Illicit Financial Flows from Developing Countries: 2004-2013" by Global Financial Integrity says that during the aforementioned 10 year period, the flow of illicit money from Costa Rica exceeded $11 billion, that is about $1.1 billion a year.
The counter reform of the Public Procurement Act prohibits hiring companies whose representatives have been convicted of crimes against public administration, money laundering or terrorism.
Panamanian authorities are still in the process of reversing the amendments made to the Public Procurement Act 22 during the government of Ricardo Martinelli, such as the "abbreviated tenders" or "less pressing contracts".
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.
The Administrative Office of Seized Properties in Honduras will be responsible for overseeing the continued operations of the companies seized from Continental Group.
The Executive ordered the Administrative Office of Seized Property (OABI by its initials in Spanish) to be responsible for seeing that companies seized from the group continue to operate as normally as possible.
The CICIG has shown that in practice the private financing of candidates and political parties is anonymous, unlimited and uncontrolled, and that 25% of it comes from drug trafficking.
From the introduction of a report by the International Commission Against Impunity in Guatemala (CICIG), "FINANCING OF POLITICS IN GUATEMALA"
The relationship between money and politics is a problematic topic that has been addressed both in the field of philosophy and political science, aS well as in public debate. In the academic world, this issue has been addressed in arguments that show how detrimental it is to the social and political order that the same people and groups that concentrate economic power also concentrate political power, and therefore what is sought and prefered are institutional designs which contribute to keeping the two spheres separate. However, both in societies with consolidated democracies and countries in the process of democratizing, the decisive influence of groups with economic power has been maintained or increased.
The National Association of Private Enterprise in El Salvador has declared that "money laundering is enabling Alba Petróleos to dabble in various production and commercial activities in the country."
According to an article in Elsalvador.com "The Executive Director of the ANEP, Arnoldo Jimenez said that this development ‘is part of a whole scheme of money laundering, diversion of funds and corruption that exists behind Alba ', referring to 'how Alba and el Frente (FMLN) are gaining economic control through political power'. "