The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) yesterday announced that it has brought sanctions to bear against Panama’s Waked organisation for alleged money laundering.

In a lengthy statement, the US DOT’s office makes detailed allegations in relation to a group it names as the ‘Waked Money Laundering Organization’ and its alleged leaders, Nidal Ahmed Waked Hatum and Abdul Mohamed Waked Fares. [Nidal Waked has since been arrested-Ed].

It further states that these two individuals have been identified as Specially Designated Narcotics Traffickers under the Foreign Narcotics Kingpin Designation Act (Kingpin Act).

In addition, its states that the Office of Foreign Assets Control has also targeted six associates and 68 companies which it has tied to the alleged drug money laundering network, including Grupo Wisa, S.A., Vida Panama (Zona Libre) S.A., and Balboa Bank & Trust.

PRESIDENT WAKED DENIES ACCUSATIONS

However, TRBusiness has also received a short formal statement from Grupo Wisa President Abdul Waked, in an email copied to Grupo Wisa’s Vice President of Corporate Affairs Juna Luis Correa, Nelson Padua, Marketing Director and Matthieu Castillon du Perron, Corporate Vice President.

The open statement (prepared for all media) contains a complete denial of all the alleged accusations of money laundering cited by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).

Abdul Waked said: “We wish to inform the public that these accusations are false and unfounded and we have instructed our lawyers to provide full cooperation with the Public Ministry, so this lamentable confusion is cleared as soon as possible.”

 

MULTIPLE ALLEGATIONS

The OFAC also claims that Panamanian-Colombian-Spanish national Waked Hatum and Panamanian-Lebanese-Colombian national Waked Fares co-led the so-called ‘Waked MLO’.

 

It futher alleges that this organisation 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 organizations.

Following yesterday’s action, all assets of these individuals and entities that are under the jurisdiction of the United States or in the control of US persons are now frozen, with all US persons generally prohibited from engaging in transactions with them.

Commenting on this action, John E. Smith, Acting OFAC Director said: “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.

VERY DETAILED ACTION

“We look forward to working jointly with the Panamanian authorities to protect the Panamanian and US financial systems from abuse by narcotics traffickers and other illicit actors.”

The US Department of the Treasury adds that in addition, the OFAC action has also designated six Panama-based associates for providing material support and/or acting on behalf of the alleged money laundering.

It lists these individuals and their responsibilities as follows: Gazy Waked Hatum, Ali Waked Hatum, and Jalal Waked Hatum – brothers of Waked Hatum who manage Waked Hatum’s import/export, retail, and real estate businesses; Mohamed Abdo Waked Darwich, Waked Fares’ son, who manages Waked Fares’ duty free retail and real estate development operations; and two attorneys, Norman Douglas Castro Montoto and Lucia Touzard Romo, who are said to engage in various roles in several Waked-related companies.

In addition, the very detailed action also targets ‘principal Panama-based companies’ who are said to be used to laundering drug and other illicit proceeds.

 

LA RIVIERA RETAIL IS PROMINENTLY MENTIONED…

It names these as the following: Vida Panama (Zona Libre) SA, an import/export company in Panama’s Colon Free Trade Zone; Grupo Wisa S.A., 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; Soho Panama SA and related entities, including a luxury mall and real estate development in downtown Panama City; and Balboa Bank & Trust, a Panamanian bank; and the Strategic Investors Group Inc., a holding company that owns and controls Balboa Bank & Trust as well as two other financial services companies.

The OFAC says Balboa Bank & Trust was used to launder narcotics and other illicit proceeds for multiple international criminal organizations.

It adds that this latest action has been conducted in coordination with the Drug Enforcement Administration, Customs and Border Protection, and the Miami Division of the Federal Bureau of Investigation. In addition, the Panamanian authorities ‘have been informed of this designation and Panamanian and US authorities will coordinate going forward’.

 

[This story has been updated to include the written response to the OFAC’s allegations against the Grupo Wisa organisation].