Showing posts with label bank. Show all posts
Showing posts with label bank. Show all posts

Thursday, October 18, 2018

Europe Can't Get a Grip On Its Dirty Money, but Panama is Always to Blame


After reading the newspapers of International Consortium of Journalists, one would have the impression that Panama is the main launderer of the world.  However, funds of the transactions described in the Panama Papers story rarely used Panama banks and they are dwarfed by the trillions already being laundered in the European Union by its banks.




Europe Can't Get a Grip On Its Dirty Money

Though regulators are getting tougher, European banks are still too willing to overlook suspicious transactions by dodgy clients.


As another top Scandinavian bank faces money-laundering accusations, it’s clear that the rules are changing for European lenders under intense U.S. pressure. A closer scrutiny of clients with links to the former Soviet Union and other high-corruption regions is fast becoming a necessity. Though the motives behind the pressure can be questioned, the outcome is mostly positive for Europe. Its role as a haven for dirty money hasn’t fit its declared values well.
Helsinki-based Nordea Bank Abp, Scandinavia’s biggest bank, has been accused of laundering money for shell companies registered in Estonia and Lithuania and holding accounts with the notorious Estonian branch of Danske Bank A/S and Lithuania-based Ukio Bank. If this proves true, Nordea will be dragged into a laundering scandal that has rocked Danske. So will the Lithuanian banking system, which has so far skirted the kind of trouble suffered by its neighbors, Estonia and especially Latvia, caused by nefarious non-resident activities in their banking systems.
The accuser, Bill Browder, is a controversial figure. An investor who made a fortune in Russia and an early booster of President Vladimir Putin, he lost his Russian business to what he describes as a massive tax scam by well-connected officials. A Browder associate, Sergey Magnitsky, died in prison after trying to investigate it. Browder has since branded himself Putin’s “Enemy Number One” and lobbied successfully in multiple countries for the passage of “Magnitsky laws” sanctioning foreign human rights violators. His latest campaign involves tracking Russian dirty money, and he has played an important role in the Danske scandal.
Browder’s Russian experience and his singular focus on the Putin regime’s wrongdoing make him well-qualified for the job of revealing dodgy financial flows from Russia. But his example shows that, with a little determination, regulators could find out much more by themselves about money laundering, and not just by Russian actors. They know where to look, too.
In recent years, but especially in 2018, Europe has seen a growing number of high-profile money laundering cases involving banks. The most notable were listed in a report published by the ratings agency S&P on Tuesday, which points out that while laundering problems aren’t unique to Europe, the continent’s banks are “over-represented in such cases.” 
This year alone, Netherlands-based ING Bank agreed to pay $900 million to settle a Dutch probe into facilitating apparent bribes from a telecoms company with Russian roots to a government official in Uzbekistan; France’s Societe Generale SA was forced to pay $585 million after a French-U.S. probe into a Libyan bribery scheme; Pilatus Bank in Malta had its assets frozen for running a U.S. sanctions-busting scheme with Venezuela and Iran; in Estonia, Versobank, owned by secretive Ukrainian tycoon Vadim Ermolaev, was closed down overnight for providing laundry services to various post-Soviet players; in Latvia, ABLV was shut down after the U.S. cracked down on suspicious non-resident activities; and, again in the Netherlands, Rabobank paid $369 million for its role in hiding Mexican drug cartels’ cash. Then there’s Danske.
While the cases appear diverse and unrelated, there are three similarities most of them share. All of the banks except Societe Generale operate in countries that actively participate in tax competition and make it relatively easy for non-residents to do offshore business. In every case, the problem clients come from countries with high corruption. In most cases, U.S. involvement has played a critical role in policing the banks.
The latter isn’t necessarily a good thing. Extraterritorial U.S. sanctions are a naked power play that enjoys little support in Europe, as evidenced by recent EU efforts to save the 2015 nuclear deal with Iran. U.S.-Russia tensions also contribute to the heightened American attention to Russian transactions, an atmosphere that benefits Browder’s anti-Putin campaign. But Europe does have a lot to learn from the U.S. when it comes to tracking down suspicious transactions and making it impossible for banks to escape punishment.
The S&P report notes that Europe is learning, noting the success of the Dutch probe into ING and the German financial regulator’s appointment of an external auditor to supervise Deutsche Bank AG’s progress in fixing its anti-money laundering controls. In the Danske case, too, the national regulator appears to be on the ball.
That’s a start. Europe shouldn’t just bow to U.S. demands when fighting dirty money. If the EU wants to occupy the moral high ground given up by the U.S. during the Trump presidency, it cannot allow the European economy to serve as a comfortable destination for dirty money – whether post-Soviet, African or Latin American – as it has done for decades. This explains the recent European anti-money laundering push. It includes a  directive passed earlier this year that enhanced controls over digital currencies and other anonymous forms of payment and called for a united database of companies and their beneficial owners. The EU has also called for more powers in using supranational agencies to fight money-laundering, overcoming the reluctance of national regulators in the more offshore-friendly countries.
The current high-profile probes and fines won’t stop money-laundering, though. As long as shell companies can be set up – the S&P report singled out U.K.-registered limited liability partnerships as “a key conduit for financial crime” – the financial infrastructure will remain, if only in the shape of small banks that can fly under the radar. But a concerted effort to look in all the obvious places could shrink the dirty money flows considerably.

Wednesday, August 12, 2015

Regulators open to offers for Panama bank

The reorganization committee of Banco Universal started last week the process of sending letters to all general license banks to participate in the sale process of the company. Banco Universal was intervened by the regulators back in June 2015 and is one of the smallest banks of the Panamanian banking system.

The process of receiving proposals will be open for 20 days, said Gustavo Villa, secretary general of the Superintendency of Banks of Panama (SBP).  Those interested in acquiring the operations of Banco Universal  will have 20 days, starting August 10, to submit their bids.

In negotiating Banco Universal operations there are two possible scenarios: the purchase of the loan portfolio, or the purchase of portfolios, plus deposits.

Interested parties will have available a virtual data room with general information about the bank after signing a confidentiality agreement. They should express a non-binding offer at that time, and if they are interested or not to continue in the process.  The entire sale process is expected to last between 90 and 120 days.

BANCO UNIVERSAL, S.A. (under intervention)
FINANCIAL STATEMENTS (in thousands of dollars)



June 2015



LIQUID ASSETS
61,803.78
Local Deposits in Banks
22,763.98
At Sight
12,463.89
Timed Deposits
10,300.09
Foreign Deposits in Banks
31,053.59
At Sight
13,753.59
Timed Deposits
17,300.00
Minus Reserves
0.00
Local
0.00
Foreign
0.00
Others
7,986.21
LOANS
226,580.78
Local
230,685.62
Foreign
0.00
Minus Reserves
4,104.84
Local
4,104.84
Foreign
0.00
INVESTMENTS IN SECURITIES
40,148.80
Local
5,072.15
Foreign
35,079.65
Minus Reserves
3.00
Local
3.00
Foreign
0.00
OTHER ASSETS
32,278.07
Local
31,826.34
Foreign
451.73
TOTAL ASSETS
$360,811.42
DEPOSITS
306,704.08
Local
293,983.96
Government-owned
0.00
Of Individuals
285,107.40
At Sight
41,423.46
Timed Deposits
188,425.32
Savings
55,258.61
From Banks
8,876.56
At Sight
4,876.56
Timed Deposits
4,000.00
Foreign
12,720.12
Government-owned
0.00
From Individuals
0.00
At Sight
0.00
Timed Deposits
0.00
Savings
0.00
From Banks
12,720.12
At Sight
9,220.12
Timed Deposits
3,500.00
LIABILITIES
411.63
Local
411.63
Foreign
0.00
OTHER LIABILITIES
10,372.40
Local
10,345.12
Foreign
27.28
EQUITY
$43,323.31
Capital
32,450.98
Capital Reserves
0.00
Other Reserves
8,178.94
Dynamic Reserves
2,022.04
Other Reserves
6,156.89
Retained Earnings
8,061.49
Earnings for the Period
617.01
Gain or Loss in Securities available for Sale
(5,985.10)
Subordinated Debt
0.00
LIABILITIES AND EQUITY
$360,811.42

For full text see http://www.critica.com.pa/nacional/el-proximo-lunes-inicia-proceso-de-venta-del-banco-universal-401034
http://www.midiario.com/uhora/nacionales/banco-universal-entra-en-el-proceso-de-venta
Statements from superbancos.gob.pa


Friday, August 02, 2013

Panama: Developing a financial centre


Panama: Developing a financial centre
Latin America | 26 Jun 2013


Lending in Panama continues to grow at a healthy pace, while important regulatory changes are being carried out to ensure the stability of banks. At the same time, authorities are boosting transparency of the system, increasing their cooperation with the international community and strengthening Panama’s position as a regional financial centre.

Domestic credit within the national banking system grew by 14.2% in 2012, reaching more than $33bn, according to data from the Superintendent of Banks (Superintendencia de Bancos Panamá). The increase was largely on the back of private sector loans, which accounted for 94.2% of credit as of the end of last year. Overall asset levels were up by 10%, hitting $72.94bn.

Panama’s international financial centre – established in 1970 and home to nearly 100 offshore banks – also saw growth in 2012, with assets rising by 10% to reach $89.78bn. While the country still has relatively strong banking secrecy laws, it has started to disclose more financial information through bi-lateral agreements such as the US-Panamanian Tax Information Exchange Agreement (TIEA), which went into effect in April 2011, and the more recent TIEA with Canada signed in March 2013. Panama was removed from the OECD “grey list” in 2011 after signing its 12th TIEA in just under two years.

More generally, the country is taking steps to strengthen the regulatory and oversight frameworks for its financial system, in line with recommendations from the IMF. These include the establishment of a liquidity facility to act as a lender of last resort, as there is no central bank, as well as the ongoing development of capital adequacy and regulatory reporting standards for holding companies in the financial sector and the finalisation and implementation of regulations on operational and interest rate risks.

In its latest Article IV staff report, published in March 2013, the IMF also pointed out that, with high levels of trade and foreign financing, Panama remains vulnerable to external shocks. In particular, sudden fluctuations in capital flows to Latin America or a slowdown in Colombia and/or Venezuela, major trading partners and important sources of foreign deposits, could have an adverse effect on private sector credit growth, although the recent establishment of a sovereign wealth fund will reduce these risks.

Despite these concerns, Panama remains a top regional financial centre, with total assets equivalent to about 215% of GDP. Domestic lending to the private sector amounts to about 90% of GDP, and loans have exceeded deposits since mid-2010. Indicative of its importance, Panama was recently included for the first time in the March 2013 edition of the Global Financial Centres Index, which is published every six months by London-based think tank Z/Yen.

The country’s overall rank of 67 out of 75 of the world’s leading financial centres is indicative of its small size, yet it is not far behind its regional competitors Mexico City (55), Buenos Aires (53), Rio de Janeiro (48) and Sao Paolo (44). With a population of 3.57m, Panama is tiny in comparison to these giants, but its rapidly expanding dollarised economy, political stability and strong network of banks have allowed it to punch well above its weight in the regional and global contexts.

Since Panama first established itself as a centre for finance in 1970, the banking sector has undergone a number of important changes, particularly in the past few years. Improving asset quality, increased cooperation with the international community, and strong growth in domestic deposits amidst prominent economic expansion have all contributed to the development of the banking and larger financial systems. However, the strengthening of one of Latin America’s five-largest financial centres remains a work in progress.

For full text see http://www.oxfordbus inessgroup.com/
More information is available in http://www.oxfordbusinessgroup.com/product/report/report-panama-2013

Wednesday, February 20, 2013

Purchase of HSBC Panama by Bancolombia creates winners and losers

HSBC sold its Panama assets as was rumored already for several months in the local financial center.   HSBC Latin American Holdings (UK) Limited signed with Bancolombia a promise agreement for the sale of HSBC Bank (Panama), S.A.      Previously HSBC BANK (USA) purchased the Panama assets of the then-Chase Manhattan Bank, N.A. - which had operated for more than half a century in Panama - and managed in a few years to squander the goodwill that "El Chase" had generated among local and regional customers.    Any negative customer perception it had after HSBC purchased Banistmo did not matter as long as statements were acceptable and large clients such as the Panama Canal Authority remained.    HSBC subsidiaries also have insurance and brokerage licenses.  Bancolombia does not have experience in major banking in Panama besides a small international license branch, and a labor shortage would it make it difficult to repeat the success in consumer banking that Venezuelan-owned Banesco had in a few years, which hired key staff from banks acquired by other merging banks.

The usual commentators will say this is proof that large banks flee Panama because it is blacklisted in several countries and with the OECD.   This does not explain why HSBC openly promotes its banking services as "offshore" in places like Dubai, Jersey and Hong Kong.





In the end, small markets like Panama are not attractive to mega-banks seeking larger markets like Argentina and Brazil.   Local banks of Panamanian capital continue serving local and foreign customers, while a few international banks find Panama useful to book offshore operations.




Bancolombia Falls After $2.1 Billion HSBC Panama Deal

Bancolombia SA, Colombia’s largest bank, fell for a second day in Bogota trading after agreeing to pay $2.1 billon for HSBC Holdings Plc’s Panama unit in its biggest-ever acquisition.
The company’s preferred shares, which are more actively traded than the common stock, fell 2.5 percent to 29,920 pesos at 12:23 p.m. It was the second-biggest loser today on the country’s benchmark Colcap Index, which fell 0.8 percent.
The acquisition is the second Bancolombia has announced in Central America in two months. The shares have fallen 5.1 percent from this year’s high of 31,460 as analysts including Banco Santander SA’s Boris Molina and Luis Guzman speculated that the company may have to sell equity to pay for acquisitions and meet regulatory capital minimums.
“The stock is responding to the expectation that they’ll have to sell shares, even if they’re not running to do it,” Katherine Ortiz, an analyst at Corredores Asociados SA, said in a telephone interview from Bogota.

More in http://www.bloo mberg.com/news/2013-02-19/bancolombia-falls-after-2-1-billion-hsbc-panama-deal.html

See also
Superintendent of Securities Relevant Fact http://www.supervalores.gob.pa/informacion-del-mercado/hechos-de-importancia/269-hechos-de-importancia-2013/4656-hsbc-bank-panama-sa-adquirido-por-bancolombia-sa.html

HSBC BANK (PANAMA), S.A. Financials
HSBC LEASING, S.A. Leasing financials

HSBC operations remaining elsewhere http://www.hsbc.com.pa/1/2/es/grupo/hsbc-en-el-mundo
Compare Offshore Branches with HSBC Premier Offshore Banking http://www.hsbcpremier.com/1/2/hsbcpremier/en/compar
Why do offshore banking with HSBC Expat http://www.expat.hsbc.com/1/2/hsbc-expat/why-hsbc-expat/offshore-banking
Which HSBC Premier offshore banking centre will suit your needs? http://www.hsbcpremier.com/1/2/hsbcpremier/en/compare


Wednesday, November 14, 2012

Panama banking center has 93 active banks

Panama has 93 licensed banks, of which 14 are representative offices not allowed to receive deposits.   This leaves 2 government-owned banks and 48 full-service general license banks open to the general public. An additional 29 banks have international license banks which can receive deposits only from non-Panamanians.


General License


1. ALLBANK CORP. *

2. BAC International Bank Inc

3. Balboa Bank & Trust Corp

4. Banco Aliado, S.A

5. Banco Azteca (Panamá), S.A

6. Banco Bilbao Vizcaya Argentaria (Panamá), S.A. (BBVA)

7. Banco Bolivariano (Panamá), S.A.

8. Banco Citibank (Panamá,) S.A

9. Banco Davivienda (Panamá), S.A

10. Banco Delta, S.A (BMF)

11. Banco de Bogotá (Panamá), S.A

12. BANISI, S.A.

13. Banco G & T Continental (Panamá), S.A. (B.M.F)

14. Banco General, S.A.

15. Banco Internacional de Costa Rica, S.A (BICSA)

16. Banco Lafise Panamá, S.A.

17. Banco Latinoamericano de Comercio Exterior, S.A. *

18. Banco La Hipotecaria, S.A

19. Bancolombia, S.A.

20. Banco Panamá, S.A

21. Banco Panameño de la Vivienda, S.A. (BANVIVIENDA)

22. Banco Pichincha Panamá, S.A.

23. Banco Prival, S. A. (en español) - Prival Bank (en inglés)

24. Banco Trasatlántico, S.A.

25. Banco Universal, S.A.

26. Banesco, S.A.

27. Bank Leumi Le-Israel, B.M.

28. Bank of China Limited

29. BCT Bank International, S.A.

30. Capital Bank, Inc

31. Citibank, N.A.

32. Credicorp Bank, S.A.

33. FPB Bank Inc.

34. Global Bank Corporation

35. HSBC Bank (Panamá), S.A. *

36. Korea Exchange Bank, Ltd.

37. Mega International Commercial Bank Co. Ltd.

38. Mercantil Bank (Panamá), S.A.

39. Metrobank, S.A.

40. MiBanco, S.A. B.M.F

41. MMG Bank Corporation

42. Multibank, Inc.

43. Produbank (Panamá), S.A

44. St. Georges Bank & Company, Inc.

45. The Bank of Nova Scotia (SCOTIABANK)

46. The Bank of Nova Scotia (Panamá), S.A.

47. Towerbank International, Inc.

48. Uni Bank & Trust, Inc

* Relevant Changes
** Awaiting notice of approval

(c) Mypanamalawyer.blogspot.com Reproduction prohibited

International License

1. Andbanc (Panamá), S.A.

2. Atlantic Security Bank

3. Austrobank Overseas (Panamá), S.A.

4. BAC Bank, Inc.

5. Banca Privada D'Andorra (Panamá), S.A.

6. Banco Credit Andorra (Panamá), S.A.

7. Banco Corficolombiana (Panamá), S.A.

8. Banco de Bogotá, S.A.

9. Banco de Crédito del Perú

10. Banco de la Nación Argentina

11. Banco de Occidente (Panamá), S.A.

12. Banco del Pacífico (Panamá), S.A.

13. Banco Ficohsa (Panamá), S.A.

14. Banco Internacional de Perú, S.A.A – Interbank

15. Banco Santander (Panamá), S.A.

16. Bancolombia (Panamá), S.A

17. BHD International Bank (Panamá), S.A.

18. Inteligo Bank, Ltd.

19.Banco Colpatria Multibanca Colpatria, S.A., Sucursal Panamá

20. ES Bank (Panamá), S.A.

21. First Central International Bank

22. GNB Sudameris Bank, S.A.

23. GTC Bank, Inc.

24. Helm Bank (Panamá), S.A.

25. International Union Bank

26. PKB Banca Privada (Panamá) S.A.

27. Popular Bank Ltd., Inc.

28. Scotiabank Perú, S.A.A. Sucursal Panamá

29. TAG Bank, S.A.

* Relevant Changes
** Awaiting notice of approval


For procedures to open a bank account, see also