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U.S. Pressure Angers Panama Banks


Bankers and some Government officials here are angered by what they see as the Bush Administration’s efforts to make Panamanian banks practice a higher level of scrutiny than is required of banks in the United States to prevent the laundering of illegal-drug profits.

At issue is the interpretation of a new law-enforcement agreement between the United States and Panama, signed recently after the Bush Administration threatened to withhold some economic aid.

Panamanian bankers and banking officials contend that the accord substantially broadens the interpretation of what constitutes money laundering and increases their obligation to detect it. Defining Dirty Money

“In a conventional sense, money laundering is bringing in cash to deposit, and, in that way, clean it,” said Ruben Carles, the Comptroller General in the Government of President Guillermo Endara and a former private banker.

More : query.nytimes.com



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